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Open AccessArticle

Provision of Public Health Services and Sustainable Development: Evidence for 12 Emerging Countries

1
Department of Economics, Universidad de Castilla-La Mancha, Ronda de Toledo s/n, 13071 Ciudad Real, Spain
2
Department of Economics and INARBE, Universidad Pública de Navarra, Campus de Arrosadía s/n, 31006 Pamplona, Spain
*
Author to whom correspondence should be addressed.
Sustainability 2020, 12(16), 6546; https://doi.org/10.3390/su12166546
Received: 26 June 2020 / Revised: 31 July 2020 / Accepted: 11 August 2020 / Published: 13 August 2020
(This article belongs to the Special Issue Public Policies for Sustainability and Sustainable Public Policies)
In this paper, we quantify the effects of an increase in the public provision of health services in a set of 12 emerging economies (i.e., Brazil, Chile, China, Colombia, India, Kazakhstan, Mexico, Morocco, Peru, Russia, South Africa and Tunisia), representing 45% of world population in 2018. We use a computable general equilibrium model and simulate an increase in the real government expenditure devoted to public health services up to a 20% of total government expenditure, which is also assumed to raise labour productivity. This increase leads to expansionary effects in terms of gross domestic product (GDP) and employment for all the economies under analysis and an increase in the ratio of government deficit to GDP, ranging between 3.66 points for Russia and 0.24 points for Colombia. If, in addition, direct tax rates on labour are increased to offset this result, the effects on GDP and employment become contractionary in most cases; whereas if indirect tax rates are those to be increased, small expansionary effects are again the norm with the only exception of Russia. View Full-Text
Keywords: Sustainable Development Goals; spending in health services; computable general equilibrium Sustainable Development Goals; spending in health services; computable general equilibrium
MDPI and ACS Style

Bajo-Rubio, O.; Gómez-Plana, A.G. Provision of Public Health Services and Sustainable Development: Evidence for 12 Emerging Countries. Sustainability 2020, 12, 6546.

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