Human Capital Development and Public Health Expenditure: Assessing the Long-Term Sustainability of Economic Development Models
This study investigates the role of public health expenditure on human capital development in South Africa to promote economic development. Despite extensive public health investments and economic reforms, persistent socioeconomic challenges such as poverty, unemployment, and inequality impede susta...
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| Format: | Article |
| Language: | English |
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MDPI AG
2025-06-01
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| Series: | Social Sciences |
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| Online Access: | https://www.mdpi.com/2076-0760/14/6/351 |
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| author | Ngesisa Magida Thobeka Ncanywa Kin Sibanda Abiola John Asaleye |
| author_facet | Ngesisa Magida Thobeka Ncanywa Kin Sibanda Abiola John Asaleye |
| author_sort | Ngesisa Magida |
| collection | DOAJ |
| description | This study investigates the role of public health expenditure on human capital development in South Africa to promote economic development. Despite extensive public health investments and economic reforms, persistent socioeconomic challenges such as poverty, unemployment, and inequality impede sustainable economic growth. This study uses an autoregressive distributed lag model, a vector error correction model (VECM), quantile regression, and Granger causality analysis to assess the relationship between fiscal health policies and human development. The findings confirm that government health spending significantly enhances human development in the short and long run, while unemployment and population growth exert adverse effects. VECM variance decomposition results indicate that the influence of public health expenditure remains persistent, though diminishing over time, with growing contributions from unemployment. Quantile regression shows the heterogeneous impact of health spending across different levels of economic development, emphasising its greater effectiveness at higher development stages. Causality analysis reveals a unidirectional relationship from public health expenditure to human development; this shows the need for sustained healthcare investment. The study calls for policies combining health spending with economic strategies to boost productivity, reduce inequality, and promote inclusive growth. Strengthening institutional efficiency and ensuring macroeconomic stability are crucial for maximising long-term human capital to promote sustainable development. |
| format | Article |
| id | doaj-art-0da11bc0660f4fc780e4829b381dccfc |
| institution | Kabale University |
| issn | 2076-0760 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Social Sciences |
| spelling | doaj-art-0da11bc0660f4fc780e4829b381dccfc2025-08-20T03:29:43ZengMDPI AGSocial Sciences2076-07602025-06-0114635110.3390/socsci14060351Human Capital Development and Public Health Expenditure: Assessing the Long-Term Sustainability of Economic Development ModelsNgesisa Magida0Thobeka Ncanywa1Kin Sibanda2Abiola John Asaleye3Faculty of Economic and Financial Sciences, Walter Sisulu University, Private Bag X1, Mthatha 5117, South AfricaDirectorate of Research and Innovation Development, Walter Sisulu University, Private Bag X1, Mthatha 5117, South AfricaFaculty of Economic and Financial Sciences, Walter Sisulu University, Private Bag X1, Mthatha 5117, South AfricaFaculty of Economic and Financial Sciences, Walter Sisulu University, Private Bag X1, Mthatha 5117, South AfricaThis study investigates the role of public health expenditure on human capital development in South Africa to promote economic development. Despite extensive public health investments and economic reforms, persistent socioeconomic challenges such as poverty, unemployment, and inequality impede sustainable economic growth. This study uses an autoregressive distributed lag model, a vector error correction model (VECM), quantile regression, and Granger causality analysis to assess the relationship between fiscal health policies and human development. The findings confirm that government health spending significantly enhances human development in the short and long run, while unemployment and population growth exert adverse effects. VECM variance decomposition results indicate that the influence of public health expenditure remains persistent, though diminishing over time, with growing contributions from unemployment. Quantile regression shows the heterogeneous impact of health spending across different levels of economic development, emphasising its greater effectiveness at higher development stages. Causality analysis reveals a unidirectional relationship from public health expenditure to human development; this shows the need for sustained healthcare investment. The study calls for policies combining health spending with economic strategies to boost productivity, reduce inequality, and promote inclusive growth. Strengthening institutional efficiency and ensuring macroeconomic stability are crucial for maximising long-term human capital to promote sustainable development.https://www.mdpi.com/2076-0760/14/6/351human development indexgovernment expenditure on health servicesinflationlabour market |
| spellingShingle | Ngesisa Magida Thobeka Ncanywa Kin Sibanda Abiola John Asaleye Human Capital Development and Public Health Expenditure: Assessing the Long-Term Sustainability of Economic Development Models Social Sciences human development index government expenditure on health services inflation labour market |
| title | Human Capital Development and Public Health Expenditure: Assessing the Long-Term Sustainability of Economic Development Models |
| title_full | Human Capital Development and Public Health Expenditure: Assessing the Long-Term Sustainability of Economic Development Models |
| title_fullStr | Human Capital Development and Public Health Expenditure: Assessing the Long-Term Sustainability of Economic Development Models |
| title_full_unstemmed | Human Capital Development and Public Health Expenditure: Assessing the Long-Term Sustainability of Economic Development Models |
| title_short | Human Capital Development and Public Health Expenditure: Assessing the Long-Term Sustainability of Economic Development Models |
| title_sort | human capital development and public health expenditure assessing the long term sustainability of economic development models |
| topic | human development index government expenditure on health services inflation labour market |
| url | https://www.mdpi.com/2076-0760/14/6/351 |
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