INVESTING IN HEALTH: HOW EU HEALTH EXPENDITURES SHAPE OUTCOMES

Abstract

This study analyzes the impact of health expenditures on various health outcomes in European Union countries and United Kingdom, over the period 2002–2022. Using regression analysis with health expenditures as a percentage of GDP as the primary independent variable, the results demonstrate a significant positive effect of health spending on life expectancy and a reduction in mortality rates (under-5, infant, and maternal). Higher health expenditure is also associated with a lower incidence of infectious diseases, including tuberculosis and HIV, and an increase in healthcare infrastructure, reflected in the number of physicians. GDP per capita shows a similarly positive association with health outcomes, highlighting the benefits of economic development. Control of corruption increases life expectancy and affects several health indicators, such as the number of physicians or DPT immunization. Governance effectiveness also improves tuberculosis incidence and DPT immunization. These findings underscore the importance of sustained health investment and good governance in improving public health. The study provides valuable insights for policymakers in the EU, emphasizing the role of financial commitment to healthcare and the need to address governance challenges to optimize health outcomes.

Keywords

• health expenditures
• health outcomes
• european union
• governance
• public health policy