IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v20y2023i4p3049-d1063083.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    Department of Applied Social Sciences, Silesian University of Technology, 44-100 Gliwice, Poland)

  • Oleksandr Dluhopolskyi

    (Faculty of Economics and Management, West Ukrainian National University, 46020 Ternopil, Ukraine
    Institute of Public Administration and Business, WSEI University, 20-209 Lublin, Poland)

  • 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)

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.

Suggested Citation

  • Alina Vysochyna & Tetiana Vasylieva & Oleksandr Dluhopolskyi & Marcin Marczuk & Dymytrii Grytsyshen & Vitaliy Yunger & Agnieszka Sulimierska, 2023. "Impact of Coronavirus Disease COVID-19 on the Relationship between Healthcare Expenditures and Sustainable Economic Growth," IJERPH, MDPI, vol. 20(4), pages 1-18, February.
    • Handle: RePEc:gam:jijerp:v:20:y:2023:i:4:p:3049-:d:1063083
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/20/4/3049/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/20/4/3049/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Serge Mandiefe Piabuo & Julius Chupezi Tieguhong, 2017. "Health expenditure and economic growth - a review of the literature and an analysis between the economic community for central African states (CEMAC) and selected African countries," Health Economics Review, Springer, vol. 7(1), pages 1-13, December.
    2. Nadide 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.
    3. Devarajan, Shantayanan & Swaroop, Vinaya & Heng-fu, Zou, 1996. "The composition of public expenditure and economic growth," Journal of Monetary Economics, Elsevier, vol. 37(2-3), pages 313-344, April.
    4. Kathrin Durizzo & Kenneth Harttgen & Fabrizio Tediosi & Maitreyi Sahu & August Kuwawenaruwa & Paola Salari & Isabel Günther, 2022. "Toward mandatory health insurance in low‐income countries? An analysis of claims data in Tanzania," Health Economics, John Wiley & Sons, Ltd., vol. 31(10), pages 2187-2207, October.
    5. Liping Ye & Xinping Zhang, 2018. "Nonlinear Granger Causality between Health Care Expenditure and Economic Growth in the OECD and Major Developing Countries," IJERPH, MDPI, vol. 15(9), pages 1-16, September.
    6. Deborah Peikes & Arnold Chen & Jennifer Schore & Randall Brown, 2009. "Effects of Care Coordination on Hospitalization, Quality of Care, and Health Care Expenditures Among Medicare Beneficiaries: 15 Randomized Trials," Mathematica Policy Research Reports ce70f11be1b44e2c8590b9cf5, Mathematica Policy Research.
    7. repec:mpr:mprres:6184 is not listed on IDEAS
    8. Artem Artyukhov & Iurii Volk & Agnieszka Surowiec & Sylwia Skrzypek-Ahmed & Kseniia Bliumska-Danko & Oleksandr Dluhopolskyi & Volodymyr Shablystyi, 2022. "Quality of Education and Science in the Context of Sustainable Development Goals—From Millennium Goals to Agenda 2030: Factors of Innovation Activity and Socio-Economic Impact," Sustainability, MDPI, vol. 14(18), pages 1-11, September.
    9. Olena Borysiak & Tomasz Wołowiec & Grzegorz Gliszczyński & Vasyl Brych & Oleksandr Dluhopolskyi, 2022. "Smart Transition to Climate Management of the Green Energy Transmission Chain," Sustainability, MDPI, vol. 14(18), pages 1-11, September.
    10. Cheng-Feng Wu & Fangjhy Li & Hsin-Pei Hsueh & Chien-Ming Wang & Meng-Chen Lin & Tsangyao Chang, 2020. "A Dynamic Relationship between Environmental Degradation, Healthcare Expenditure and Economic Growth in Wavelet Analysis: Empirical Evidence from Taiwan," IJERPH, MDPI, vol. 17(4), pages 1-17, February.
    11. Durdana Qaiser Gillani & Syed Ahmad Saad Gillani & Muhammad Zahid Naeem & Cristi Spulbar & Elizabeth Coker-Farrell & Abdullah Ejaz & Ramona Birau, 2021. "The Nexus between Sustainable Economic Development and Government Health Expenditure in Asian Countries Based on Ecological Footprint Consumption," Sustainability, MDPI, vol. 13(12), pages 1-15, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aleksy Kwilinski & Olena Dobrovolska & Tomasz Wołowiec & Wiktor Cwynar & Iryna Didenko & Artem Artyukhov & Oleksandr Dluhopolskyi, 2024. "Carbon Dioxide, Nitrous Oxide, and Methane: What Types of Greenhouse Gases Are Most Affected by Green Investments and Renewable Energy Development?," Energies, MDPI, vol. 17(4), pages 1-19, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. N.M. Odhiambo, 2021. "Health Expenditure and Economic Growth in Sub-Saharan Africa: An Empirical Investigation," Working Papers AESRI-2021-05, African Economic and Social Research Institute (AESRI), revised Jan 2021.
    2. Mujaheed Shaikh & Afschin Gandjour, 2019. "Pharmaceutical expenditure and gross domestic product: Evidence of simultaneous effects using a two‐step instrumental variables strategy," Health Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 101-122, January.
    3. Mohammad Mafizur Rahman & Xuan-Binh (Benjamin) Vu & Son Nghiem, 2022. "Economic Growth in Six ASEAN Countries: Are Energy, Human Capital and Financial Development Playing Major Roles?," Sustainability, MDPI, vol. 14(8), pages 1-17, April.
    4. Mahmoud M. SABRA, 2022. "Health expenditure, life expectancy, fertility rate, CO2 emissions and economic growth Do public, private and external health expenditure matter?," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(632), A), pages 89-102, Autumn.
    5. Mohammad Mazharul Islam & Mohammad Nazrul Islam Mondal & Haitham Khoj, 2023. "Effects of Health Factors on GDP Growth: Empirical Evidence from Saudi Arabia," Sustainability, MDPI, vol. 15(11), pages 1-22, May.
    6. Cooray, Arusha, 2011. "The role of the government in financial sector development," Economic Modelling, Elsevier, vol. 28(3), pages 928-938, May.
    7. Yoshiyasu Ono, 2011. "The Keynesian Multiplier Effect Reconsidered," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43(4), pages 787-794, June.
    8. Marius-Răzvan Surugiu & Cristina-Raluca Mazilescu & Camelia Surugiu, 2021. "Analysis of the Tax Compliance in the EU: VECM and SEM," Mathematics, MDPI, vol. 9(17), pages 1-19, September.
    9. Castelló-Climent, Amparo & Mukhopadhyay, Abhiroop, 2013. "Mass education or a minority well educated elite in the process of growth: The case of India," Journal of Development Economics, Elsevier, vol. 105(C), pages 303-320.
    10. Jahangir Aziz & Luc Leruth, 1999. "Cyclical Effects of the Composition of Government Purchases," Macroeconomics 9902007, University Library of Munich, Germany.
    11. Urrunaga, Roberto & Aparicio, Carlos, 2012. "Infrastructure and economic growth in Peru," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    12. Hafedh Bouakez & Michel Guillard & Jordan Roulleau-Pasdeloup, 2017. "Public Investment, Time to Build, and the Zero Lower Bound," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 23, pages 60-79, January.
    13. Devarajan, Shantayanan & Easterly, William R & Pack, Howard, 2003. "Low Investment Is Not the Constraint on African Development," Economic Development and Cultural Change, University of Chicago Press, vol. 51(3), pages 547-571, April.
    14. Garikai Makuyana & Nicholas M. Odhiambo, 2019. "Public and private investment and economic growth in Malawi: an ARDL-bounds testing approach," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 673-689, January.
    15. Antonio Afonso & Hüseyin Sen & Ayse Kaya, 2021. "Government Size, Unemployment and Inflation Nexus in Eight Large Emerging Market Economies," Hacienda Pública Española / Review of Public Economics, IEF, vol. 235(1), pages 133-170, March.
    16. Samargandi, Nahla & Fidrmuc, Jan & Ghosh, Sugata, 2015. "Is the Relationship Between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle-Income Countries," World Development, Elsevier, vol. 68(C), pages 66-81.
    17. Gustavo Marrero, 2010. "Tax-mix, public spending composition and growth," Journal of Economics, Springer, vol. 99(1), pages 29-51, February.
    18. Martinez-Vazquez, Jorge & McNab, Robert M., 2003. "Fiscal Decentralization and Economic Growth," World Development, Elsevier, vol. 31(9), pages 1597-1616, September.
    19. Fujii, Tomoki & Shonchoy, Abu S. & Xu, Sijia, 2018. "Impact of Electrification on Children’s Nutritional Status in Rural Bangladesh," World Development, Elsevier, vol. 102(C), pages 315-330.
    20. Sanz Labrador, Ismael & Sanz-Sanz, José Félix, 2013. "Política fiscal y crecimiento económico: consideraciones microeconómicas y relaciones macroeconómicas," Macroeconomía del Desarrollo 5367, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:20:y:2023:i:4:p:3049-:d:1063083. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.