Health sector funding in Ghana: The effect of IMF conditionalities.

ABSTRACT

Purpose: This paper examines the factors influencing government health spending in Ghana with a particular focus on IMF conditionalities. Design/methodology/approach: We estimate four simultaneous equations using three-stage least squares (3SLS) estimator. The data used cover the period 1980-2014. Findings: After controlling for some other factors affecting government health spending, the results show that democracy and foreign aid significantly increase public sector health funding. IMF programs with its associated conditionalities insignificantly reduce public health spending Ghana. Originality/value This study provides important evidence on the impact of IMF conditionalities on health sector funding in Ghana. The results will serve as guide to policymakers when negotiating for IMF credit so that such arrangements do not obstruct health sector funding.