The role of public health expenditure in reducing infant mortality rate in India: insights from cointegration analysis

Purpose - The purpose of this paper is to investigate (1) whether the public health expenditure rises as the gross state domestic product (GSDP) increases and (2) whether the infant mortality rate (IMR) reduces as public health expenditure increases. Design/methodology/approach - For this investigation, the author collected a time series of data on public health spending and IMRs for an Indian state and applied regression, stationarity, cointegration and causality tests. The author also compared the relative performance of selected Indian states. Findings - The author found that none of the Indian states did equally well in reducing the infant mortality rate (IMR). As GSDP rises, the public expenditure on health rises, however, this increase in public health expenditures does not cause a reduction in the IMR. The cointegration and causality test results validated it. Practical implications - The author recommends that policymakers must shift their focus from merely increasing government health expenditure to efficiently utilising allocated funds and removing the administrative bottlenecks. Also, an equitable health financing system that addresses existing disparities in the healthcare delivery system should be ensured. Originality/value - Researchers and policymakers have debated the role of public health spending in achieving Sustainable Development Goal (SDG) 3 targets. The paper proves that there exists no long-term relationship between public health spending and IMR.