Macroeconomics

Linguistics

Philosophy

Developing country

Chromatography

Government (linguistics)

Panel data

Economics

Market economy

Environmental health

Empirical evidence

Human development (humanity)

Life expectancy

Public economics

Human Development Index

Epistemology

Econometrics

Decentralization

Population

Government expenditure

Medicine

Chemistry

Public expenditure

Sample (material)

Economic growth

Public finance

Annals of public and co-operative economy

In this article, we empirically analyze the impact of central and subnational government spending on human development in a sample of 57 developed and developing countries over the period 2000–18. Specifically, we focus on the effects of health and education public expenditure on the Human Development Index (HDI) and its dimensions (life expectancy, education, and income). Applying data panel analysis, our empirical evidence shows the importance of central and subnational government health expenditure positively impacting on HDI and each of its components, while in the case of the education expenditure, this positive effect is only confirmed on the educational dimension of HDI. Our study shows how governments can stimulate human development, improving the well‐being of citizens, by allocating more resources to healthcare through the different administrative levels.

Human development and decentralization: The importance of public health expenditure