Mapping Out Health Expenditure Efficiency Associated with Health Sector Performance Development in Indonesia

Proceedings of ‏The 10th international conference on Management, Economics, and Humanities

Year: 2020

DOI:

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Mapping Out Health Expenditure Efficiency Associated with Health Sector Performance Development in Indonesia

Syaparuddin, Faradina Zevaya

 

ABSTRACT: 

Health sector is one of principal development things. Health is reflection of country’s wellbeing. In order to find out a level of country’s soundness, there are some indicators analyzed, viz. i) Life Expectancy, ii) Mortality. In supporting health sector development, necessary for government expenditure led to improvement human resource quality in health, education, and income. Efficieny of health expenditure needs to be calculated to what extent its influence to the output. This research utilising Data Envelopment Analysis (DEA) and Tobit Model. DEA in analyzing efficiency level of health expenditure entire provinces in Indonesia with the output analysis are Life Expectancy, Infant Mortality, and Maternal Mortality. Environment Factors in Tobil Regeression are population and poverty.

Result of this research according to DEA analysis indicated that all provinces in Indonesia fluctuated in leveraging expenditure to achieve efficiency and optimally health sector development. Eastern Indonesia possess high level of efficiency. Although health expenditure is relatively small, there has been allocated optimally. In the meantime, Tobit regression indicated that marginal effect of population is significant, by contrary marginal effect of poverty is insignificant to health expenditure. On the whole, health expenditure possesses positive and significant effect to health development performance in Indonesia.

Keywords: Health Sector, Expenditure, Data Envelopment Analysis, Tobit Model, Indonesia.