Public Health Expenditure as a Determinant of Health Status in Lesotho

In this article, we have examined the relationship between public expenditure on health care and health status in Lesotho using an econometric technique-the error correction model. Three indicators of health status were used: life expectancy at birth (years), infant mortality rate (per 1,000 live births), and under-5 mortality rate (per 1,000). The results of our analyses provided evidence that in addition to public expenditure on health, the availability of physicians, female literacy, and child immunization are also important determinants of health status in Lesotho. Contrary to findings from earlier studies, our analyses also found income per capita to be an insignificant determinant of health status. The policy implications that emanate from this article are for the government of Lesotho to channel more resources to educating women, hiring more physicians, and increasing the number of children immunized per year. This will imply an increase in the share of public spending on health.