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Health care expenditure and economic growth: Quantile panel-type analysis


  • Wang, Kuan-Min


This study uses international total health care expenditure data of 31 countries from 1986 to 2007 for exploring the causality between an increase in health care expenditure and economic growth. The empirical procedure is divided into two parts. The first is the panel regression analysis and the second is the quantile regression analysis. The estimation of the panel regression reveals that, expenditure growth will stimulate economic growth; however, economic growth will reduce expenditure growth. With regard to the estimation of quantile regression, when economic growth is quantile, in countries with low level of growth, the influence of expenditure growth on economic growth is different. In countries with medium and high levels of economic growth, the influence of expenditure growth on economic growth is positive; when health care expenditure growth is quantile, the influence of economic growth on expenditure growth is more different.

Suggested Citation

  • Wang, Kuan-Min, 2011. "Health care expenditure and economic growth: Quantile panel-type analysis," Economic Modelling, Elsevier, vol. 28(4), pages 1536-1549, July.
  • Handle: RePEc:eee:ecmode:v:28:y:2011:i:4:p:1536-1549

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    Cited by:

    1. Nadide Sevil Halıcı-Tülüce & İbrahim Doğan & Cüneyt Dumrul, 2016. "Is income relevant for health expenditure and economic growth nexus?," International Journal of Health Economics and Management, Springer, vol. 16(1), pages 23-49, March.
    2. repec:spr:epolit:v:34:y:2017:i:3:d:10.1007_s40888-017-0076-0 is not listed on IDEAS
    3. Po-Chin Wu & Shiao-Yen Liu & Sheng-Chieh Pan, 2014. "Nonlinear relationship between health care expenditure and its determinants: a panel smooth transition regression model," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(4), pages 713-729, November.
    4. Lacheheb, Miloud & Med Nor, Norashidah & Baloch, Imdadullah, 2014. "Health Expenditure, education and Economic Growth in MENA Countries," MPRA Paper 60388, University Library of Munich, Germany.
    5. DO ANGO, Simplicio & AMBA OYON, Claude Marius, 2016. "Health expenditure and Real disposable Income in the ECCAS: A Causal Study using spatial panel approach," MPRA Paper 79684, University Library of Munich, Germany.
    6. Zeng, Jhih-Hong & Peng, Chi-Lu & Chen, Ming-Chi & Lee, Chien-Chiang, 2013. "Wealth effects on the housing markets: Do market liquidity and market states matter?," Economic Modelling, Elsevier, vol. 32(C), pages 488-495.
    7. Barañano, Ilaski & Romero-Ávila, Diego, 2015. "Long-term growth and persistence with obsolescence," Economic Modelling, Elsevier, vol. 51(C), pages 328-339.
    8. Mahmut ZORTUK & Sinan ÇEKEN, 2015. "The Relationship between Health Care Expenditures and Income in the Selected Transition Economies: A Panel Smooth Transition Regression Analysis," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 105-118, June.
    9. Serdar Ozturk & Ebru Topcu, 2014. "Health Expendıtures and Economıc Growth: Evıdence from G8 Countries," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(6), pages 256-261, June.
    10. Adelaide Duarte & Marta Simões & João Sousa Andrade, 2014. "Estado Social, Quantis, Não-Linearidades e Desempenho Económico: Uma Avaliação Empírica," GEMF Working Papers 2014-21, GEMF, Faculty of Economics, University of Coimbra.
    11. Po-Chin Wu & Shiao-Yen Liu & Sheng-Chieh Pan, 2014. "Does Misery Index Matter for the Persistence of Health Spending? Evidence from OECD Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(2), pages 893-910, September.
    12. Biswajit Maitra & C.K. Mukhopadhyay, 2012. "Public spending on education, health care and economic growth in selected countries of Asia and the Pacific," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 19(2), pages 19-48, December.
    13. repec:spr:eujhec:v:18:y:2017:i:5:d:10.1007_s10198-016-0810-5 is not listed on IDEAS
    14. Siwarat Kuson & Songsak Sriboonchitta & Peter Calkins, 2012. "Household determinants of poverty in Savannakhet, Laos: Binary choice model approach," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 1(3), pages 33-52, September.
    15. João Sousa Andrade & Marta Simões & Adelaide Duarte, 2013. "Despesa Pública em Educação e Saúde e Crescimento Económico: Um Contributo para o Debate sobre as Funções Sociais do Estado," GEMF Working Papers 2013-18, GEMF, Faculty of Economics, University of Coimbra.
    16. repec:agr:journl:v:xxiv:y:2017:i:2(611):p:249-262 is not listed on IDEAS


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