Impact of Coronavirus Disease COVID-19 on the Relationship between Healthcare Expenditures and Sustainable Economic Growth

Alina Vysochyna, Tetiana Vasylieva, Oleksandr Dluhopolskyi (), Marcin Marczuk, Dymytrii Grytsyshen, Vitaliy Yunger and Agnieszka Sulimierska
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Alina Vysochyna: Academic and Research Institute of Business, Economics and Management, Sumy State University, 40007 Sumy, Ukraine
Tetiana Vasylieva: Academic and Research Institute of Business, Economics and Management, Sumy State University, 40007 Sumy, Ukraine
Oleksandr Dluhopolskyi: Faculty of Economics and Management, West Ukrainian National University, 46020 Ternopil, Ukraine
Marcin Marczuk: Institute of Public Administration and Business, WSEI University, 20-209 Lublin, Poland
Dymytrii Grytsyshen: Faculty of National Security, Law and International Relations, Zhytomyr Polytechnic State University, 10005 Zhytomyr, Ukraine
Vitaliy Yunger: Faculty of National Security, Law and International Relations, Zhytomyr Polytechnic State University, 10005 Zhytomyr, Ukraine
Agnieszka Sulimierska: Faculty of Management, Lublin University of Technology, 20-618 Lublin, Poland

IJERPH, 2023, vol. 20, issue 4, 1-18

Abstract: The coronavirus disease (COVID-19) pandemic led to a catastrophic burden on the healthcare system and increased expenditures for the supporting medical infrastructure. It also had dramatic socioeconomic consequences. The purpose of this study is to identify the empirical patterns of healthcare expenditures’ influence on sustainable economic growth in the pandemic and pre-pandemic periods. Fulfilment of the research task involves the implementation of two empirical blocks: (1) development of a Sustainable Economic Growth Index based on public health, environmental, social, and economic indicators using principal component analysis, ranking, Fishburne approach, and additive convolution; (2) modelling the impact of different kinds of healthcare expenditures (current, capital, general government, private, out-of-pocket) on the index using panel data regression modelling (random-effects GLS regression). Regression results in the pre-pandemic period show that the growth of capital, government, and private healthcare expenditures positively influence sustainable economic growth. In 2020–2021, healthcare expenditures did not statistically significantly influence sustainable economic growth. Consequently, more stable conditions allowed capital healthcare expenditures to boost economic growth, while an excessive healthcare expenditure burden damaged economic stability during the COVID-19 pandemic. In the pre-pandemic period, public and private healthcare expenditures ensured sustainable economic growth; out-of-pocket healthcare expenditures dominantly contributed to the pandemic period.

Keywords: coronavirus disease; COVID-19; healthcare expenditure; pandemic; sustainable economic growth; sustainable development (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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