Healthcare Expenditure and GDP Growth in D8 Countrie (in Persian)

Ali Rezazadeh (), Siavash Mohamadpour () and Arian Aghabeigi ()
Additional contact information
Ali Rezazadeh: Assistant Professor, Department of Economics, Urmia University
Siavash Mohamadpour: Ph.D. Student in Economics, Institute for Management and Planning Studies
Arian Aghabeigi: Researcher in Monetary Economics and Banking, Middle East Bank, Tehran

The Journal of Planning and Budgeting (٠صلنامه برنامه ریزی و بودجه), 2019, vol. 23, issue 4, 37-62

Abstract: Being aware of the relationship between health expenditure and economic growth is an important issue in any country. Theoretically, it is expected that there is a two-way causal relationship between health expenditure and economic growth, but the relationship between these two variables should be tested empirically based on econometric techniques in different countries. Konya has proposed a new method for investigating Granger causality in a panel data framework which incorporates both coefficient heterogeneity and cross-sectional dependence. His new approach is based on SUR systems and Wald tests with country-specific bootstrap critical values. As a result, in this paper, Konya’s Bootstrap Panel Granger Causality approach has been used, based on data from D-8 countries (Bangladesh, Egypt, Nigeria, Indonesia, Iran, Malaysia, Pakistan, and Turkey) over the period 1995-2014. The results show that the real healthcare expenditure per capita is the Granger cause of the real GDP growth in Indonesia, Iran, and Malaysia, while in Pakistan the real GDP growth is found as the Granger cause of the real healthcare expenditure per capita. There was however no evidence of causality for the other countries.

Keywords: Economic Growth; Healthcare Expenditure; D-8 Countries; Bootstrap Panel Granger Causality Test; Konya Method (search for similar items in EconPapers)
JEL-codes: C50 H51 I10 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://jpbud.ir/article-1-1762-en.pdf (application/pdf)
http://jpbud.ir/article-1-1762-en.html (text/html)
http://jpbud.ir/article-1-1762-fa.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:auv:jipbud:v:23:y:2019:i:4:p:37-62

Access Statistics for this article

More articles in The Journal of Planning and Budgeting (٠صلنامه برنامه ریزی و بودجه) from Institute for Management and Planning studies Contact information at EDIRC.
Bibliographic data for series maintained by Nahid Jebeli ( this e-mail address is bad, please contact ).