The impact of ict invesment, exchange rate and inflation on healthcare expenditure in G20 countries

Health and investments in health are crucial components of human capital and have a positive relationship with economic growth according to endogenous growth theories. This study investigates the relationship between exchange rate, inflation rate, ICT (Information and Communication Technology) investments in the health sector, and health expenditures in G20 countries over the period of 2000-2019 using panel data analysis. Health expenditures are decomposed into different categories such total health expenditure, government health spending, private sector health spending and household health spending for more specific policy analysis. The empirical findings reveal that exchange rate, GDP, and general government final consumption expenditure are significant determinants of health spending. Our results show that the health sector ICT investment is a significant determinant of domestic private health expenditure per capita and out-of-pocket household expenditures per capita, indicating the importance of investments in health technologies for private sector health expenditures. However, it has no effect on current health expenditure per capita and domestic general government health expenditure per capita, suggesting that government health expenditures are not related to ICT investments. This study contributes to the understanding of the financial variables affecting health expenditures and provides insights for policymakers to take appropriate actions to ensure uninterrupted access to health services in the face of fluctuations and changes in health expenditures.