Why are Some Countries Healthier than Others: An Economic Perspective on NCD Mortality

Through empirical analysis, the article uses panel analysis to assess the impact of macroeconomic indicators on the probability of death from non-communicable diseases (NCDs) across two groups of countries with differing GDP per capita (Azerbaijan-Turkey and Israel-Austria). The panel analyses were conducted using OLS (Ordinary Least Squares) and GMM (Generalized Method of Moments). The findings indicate that the Human Development Index (HDI) is the key determinant influencing the probability of death from NCDs. As HDI increases, the likelihood of death from NCDs decreases. The panel analysis, covering countries with significantly varying levels of healthcare expenditures, reveals that an increase in healthcare expenditures does not reduce the probability of death from NCDs but, on the contrary, increases it. This outcome can be attributed to two main factors. Firstly, higher healthcare expenditures may improve the identification and reporting of NCD-related deaths, thereby increasing the observed probability. Secondly, healthcare expenditures may be utilized inefficiently, leading to less effective outcomes in reducing deaths caused by NCDs.