Is income relevant for health expenditure and economic growth nexus?

Nadide Sevil Halıcı-Tülüce (), İbrahim Doğan () and Cüneyt Dumrul
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Nadide Sevil Halıcı-Tülüce: Melikşah University
İbrahim Doğan: Bozok University

International Journal of Health Economics and Management, 2016, vol. 16, issue 1, No 2, 23-49

Abstract: Abstract This paper examines the relationship between health expenditure and economic growth using panel data consisting low and high-income countries. Using dynamic panel data methodology, we analyze twenty five high-income and nineteen low-income economies for the periods of 1995–2012 and 1997–2009, respectively. We find reciprocal relationship between health expenditure and economic growth in the short run and one-way causality from economic growth to public health expenditure in the long-run. In high-income countries, there is a two-way causality for both private and public health expenditures in the short-run, while in the long-run there is a one-way causality between economic growth and private health expenditures. The crucial finding of this study is that private health expenditures have negative influence on economic growth while public health expenditures have both negative and statistically significant effect.

Keywords: Economic growth; Health expenditure; Causality; SGMM (search for similar items in EconPapers)
JEL-codes: I15 I18 O4 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (21)

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DOI: 10.1007/s10754-015-9179-8

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