Abstract
The study examines the convergence patterns of real healthcare
expenditure per capita (RHEPC) for 43 countries of sub-Saharan
African (SSA) from the period 2000 and 2017. Conventional absolute
and conditional b-convergence models are first applied.
Several factors such as income, democracy, urbanisation and ageing
population are found to significantly affect relative RHEPC
(RRHEPC) within the conditional b-convergence model. The speed
of convergence of RRHEPC is higher for the conditional b-convergence
model than the absolute b-convergence one. In general,
b-convergence and r-divergence are detected while no support
for the stochastic convergence hypothesis is uncovered. These
neoclassical models impose restrictive assumptions that countries
follow the same growth path. As such the dynamic distribution
approach proposed by Quah is applied to analyse the dynamics
of RRHEPC. This is followed by the club convergence test as proposed
by Phillips and Sul which allows individual countries to follow
distinctive growth paths. Both convergence tests point
towards the existence of three clubs. In sum, we find strong evidence
of divergence of RHEPC among the 43 SSA countries.
Policy implementations based on model results are discussed
while several aspects of policy reforms in the healthcare sector
within the African continent are highlighted.