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Impact of Environment, Life Expectancy and Real GDP per Capita on Health Expenditures: Evidence from the EU Member States

Author

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  • Yilmaz Bayar

    (Department of Public Finance, Faculty of Economics and Administrative Sciences, Bandirma Onyedi Eylul University, Bandırma 10200, Turkey)

  • Marius Dan Gavriletea

    (Department of Business, Business Faculty, Babes-Bolyai University, 400084 Cluj-Napoca, Romania)

  • Mirela Oana Pintea

    (Finance Department, Faculty of Economics and Business Administration, Babes-Bolyai University, 400084 Cluj-Napoca, Romania)

  • Ioana Cristina Sechel

    (Faculty of Automotive, Mechatronics and Mechanical Engineering—Technical University of Cluj-Napoca, 400641 Cluj-Napoca, Romania)

Abstract

This research explores the impact of environment, life expectancy, and real GDP per capita on health expenditures in a sample of 27 EU member states over the 2000–2018 period through causality and cointegration analyses. The causality analysis revealed a significant unilateral causality from variables of greenhouse gas emissions, life expectancy, and real GDP per capita to health expenditures. In other words, greenhouse gas emissions, life expectancy, and real GDP per capita had a significant impact on health expenditures in the short run. The cointegration analysis indicated that life expectancy and real GDP per capita had a significant positive impact on health expenditures at the overall panel. On the other side, the country level cointegration coefficients revealed that life expectancy had a considerable positive impact on health expenditures, real GDP per capita had a moderate positive impact on the health expenditures in most of the countries in the panel, but the environment proxied by greenhouse gas emissions had a low positive or negative impact on the health expenditures in a limited number of countries.

Suggested Citation

  • Yilmaz Bayar & Marius Dan Gavriletea & Mirela Oana Pintea & Ioana Cristina Sechel, 2021. "Impact of Environment, Life Expectancy and Real GDP per Capita on Health Expenditures: Evidence from the EU Member States," IJERPH, MDPI, vol. 18(24), pages 1-14, December.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:24:p:13176-:d:702088
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