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Do Health Spending and Economic Growth Matter in Development? Evidence from Turkey

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  • Ebru Z. Boyacıoğlu
  • M. Kenan Terzioğlu

Abstract

Development is a multi-dimensional process that involves changes in social and economic structure. The study deals with the relationship between health spending (HS), economic growth per capita (RGDP), and development level (HDI). A country's healthcare situation is the key component of the development level. The study explores the interdependence in Turkey and aims to combine economic level and health aspects of development. Based on this idea, the relation between the variables is analyzed by using Johansen co-integration and causality tests. The data set covers the period from 1990-2019. The empirical findings of the study confirm a significant relationship between development level, health spending, and economic growth both in short term and long term in Turkey. The causality results showed only one-way causality was obtained, from HS to HDI and from GDP to HDI. Findings show that an increase in health spending and income level in Turkey affects development positively in the long run. A planned increase in health expenditures for sustainable development is presented as a future direction.

Suggested Citation

  • Ebru Z. Boyacıoğlu & M. Kenan Terzioğlu, 2022. "Do Health Spending and Economic Growth Matter in Development? Evidence from Turkey," Journal of Research in Economics, Politics & Finance, Ersan ERSOY, vol. 7(SI), pages 19-32.
    • Handle: RePEc:ahs:journl:v:7:y:2022:i:si:p:19-32
    DOI: 10.30784/epfad.1147618
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    References listed on IDEAS

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    More about this item

    Keywords

    Health; Economic growth; Development; Co-integration; Causality; Turkey;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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