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Economic Growth and Health Expenditure Analysis for Turkey: Evidence from Time Series

Author

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  • Ethem Esen

    (Anadolu University)

  • Merve Çelik Keçili

    (Anadolu University)

Abstract

This study aims to investigate the effects of health expenditure on economic growth in Turkey. For this purpose, time series data of Turkey over the period 1975–2018 were evaluated. Moreover, household consumption, life expectancy at birth, trade, and foreign direct investments were added as control variables. Cointegration analysis was performed to test whether all variables are cointegrated in the long term. Causality test was successfully employed to investigate the relationship between health expenditure and economic growth in the short term. The achieved results exhibited that Johansen Cointegration test results suggest the existence of cointegration among all variables in the long term. In addition, the Granger causality test results indicate unidirectional causality from health expenditure to economic growth in the short term. Existence of a long-term relationship among related variables and a short-term relationship between health expenditure and economic growth displays the importance of investments on health care services in Turkey. Therefore, investments in the health sector should be encouraged and the share allocated by the government for health expenditures from the budget should be increased in Turkey.

Suggested Citation

  • Ethem Esen & Merve Çelik Keçili, 2022. "Economic Growth and Health Expenditure Analysis for Turkey: Evidence from Time Series," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 1786-1800, September.
    • Handle: RePEc:spr:jknowl:v:13:y:2022:i:3:d:10.1007_s13132-021-00789-8
    DOI: 10.1007/s13132-021-00789-8
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    Cited by:

    1. Wei Jiang & Yadong Wang, 2023. "Asymmetric Effects of Human Health Capital on Economic Growth in China: An Empirical Investigation Based on the NARDL Model," Sustainability, MDPI, vol. 15(6), pages 1-16, March.

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    More about this item

    Keywords

    Human capital; Health; GDP per capita; Health expenditure per capita; Vector error correction model;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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