Government Health Expenditure and Maternal Mortality: The Moderating Role of External Debt

The impact of government health spending and external debt on maternal mortality has been the subject of ongoing theoretical and empirical discussions. However, this relationship has remained controversial with no perspective on the moderating role of external debt on the government's health expenditure and maternal mortality link. This study examines the moderating effect of external debt on the government's health expenditure and maternal mortality relation using data from 13 Southern African economies spanning from 2000 to 2022.

We employed the augmented mean group, the dynamic common correlation effect mean group, and the Driscoll-Kraay and Granger causality techniques to attain the study's objective.

The outcome revealed that government health expenditure and external debt reduce maternal mortality in the Southern African Development Community (SADC) region. Equally, the magnitude of government health spending is moderated by external debt. The results revealed a bidirectional relation amidst maternal mortality and government health expenditure, and maternal mortality and external debt.

The study recommends that policymakers within the SADC zone should avoid austerity measures and encourage expansionary measures in terms of spending, and the contraction of debt for capital investment in the health sector. This will enhance the delivery of health services within the zone and equally reduce the rate of maternal mortality that is still a major health concern within the sub-region.