Chapter 5: Convergence of Healthcare Expenditure in the BRICS Countries: A Study

The idea of relating health, education and other social sector variables with growth and development, or trying to find any convergence among similar countries with respect to such macroeconomic indicators is the basic idea of this chapter, which explores the concept of enhancing welfare through a subjective route, specifically by way of expenditure in health care. By way of testing σ- and β-convergence of current healthcare expenditure per capita of the BRICS countries for the period 2006–2018, it has been found that these countries catch up with significant convergence. It has also been obtained through panel data analysis that such convergence is significantly explained by gross domestic product (GDP) per capita, life expectancy at birth, elderly ratio, CO₂ emissions and prevalence of undernourishment, all of which are in accordance with conventional hypotheses. This chapter claims that, by way of convergence, the BRICS nations may emerge as a new economic power, and expenditure on health care is one of the major areas, among other social sector variables that will play an important role.