IDEAS home Printed from https://ideas.repec.org/a/kap/ijhcfe/v16y2016i1p23-49.html

Is income relevant for health expenditure and economic growth nexus?

Author

Listed:
  • Nadide Halıcı-Tülüce

  • İbrahim Doğan

  • Cüneyt Dumrul

Abstract

This paper examines the relationship between health expenditure and economic growth using panel data consisting low and high-income countries. Using dynamic panel data methodology, we analyze twenty five high-income and nineteen low-income economies for the periods of 1995–2012 and 1997–2009, respectively. We find reciprocal relationship between health expenditure and economic growth in the short run and one-way causality from economic growth to public health expenditure in the long-run. In high-income countries, there is a two-way causality for both private and public health expenditures in the short-run, while in the long-run there is a one-way causality between economic growth and private health expenditures. The crucial finding of this study is that private health expenditures have negative influence on economic growth while public health expenditures have both negative and statistically significant effect. Copyright Springer Science+Business Media New York 2016

Suggested Citation

  • 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.
    • Handle: RePEc:kap:ijhcfe:v:16:y:2016:i:1:p:23-49
    DOI: 10.1007/s10754-015-9179-8
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10754-015-9179-8
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10754-015-9179-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

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


    Cited by:

    1. 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.
    2. Xuanlong Qin & Danish Iqbal Godil & Muhammad Kamran Khan & Salman Sarwat & Sadaf Alam & Laeeq Janjua, 2022. "Investigating the effects of COVID-19 and public health expenditure on global supply chain operations: an empirical study," Operations Management Research, Springer, vol. 15(1), pages 195-207, June.
    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. Sasa Obradovic & Nemanja Lojanica, 2018. "Is Health Care Necessity or Luxury Good? Panel Data Analysis on the Example of the SEEHN Countries," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 16(3 (Fall)), pages 195-214.
    5. Odhiambo, Nicholas M, 2021. "Health expenditure and economic growth in Sub-Saharan Africa: An empirical investigation," Working Papers 28863, University of South Africa, Department of Economics.
    6. Maksimović, Goran & Jović, Srđan & Jovanović, Radomir & Aničić, Obrad, 2017. "Management of health care expenditure by soft computing methodology," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 465(C), pages 370-373.
    7. Ping Li & Ziqi Wang & Liting Zhao, 2024. "The Impact of a City’s Healthcare Resources on Immigrants’ Employment Quality," SAGE Open, , vol. 14(3), pages 21582440241, August.
    8. Lopreite, Milena & Zhu, Zhen, 2020. "The effects of ageing population on health expenditure and economic growth in China: A Bayesian-VAR approach," Social Science & Medicine, Elsevier, vol. 265(C).
    9. Samia Nasreen, 2021. "Association between health expenditures, economic growth and environmental pollution: Long‐run and causality analysis from Asian economies," International Journal of Health Planning and Management, Wiley Blackwell, vol. 36(3), pages 925-944, May.
    10. Rezwanul Hasan Rana & Khorshed Alam & Jeff Gow, 2020. "Health expenditure and gross domestic product: causality analysis by income level," International Journal of Health Economics and Management, Springer, vol. 20(1), pages 55-77, March.
    11. Hassan Heidari & Arash Refah Kahriz & Yousef Mohammadzadeh, 2019. "Stock market behavior of pharmaceutical industry in Iran and macroeconomic factors," Economic Change and Restructuring, Springer, vol. 52(3), pages 255-277, August.
    12. Bao, Yanxi & Liao, Tingxuan, 2024. "Multidimensional poverty and growth: Evidence from India 1998–2021," Economic Modelling, Elsevier, vol. 130(C).
    13. 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.
    14. Steven C. Deller, 2022. "Access to health care and rural worker productivity," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 722-741, June.
    15. Laurine Chikodiri Nwosu & Abraham Ayobamiji Awosusi & Oktay Özkan & Dervis Kirikkaleli & Tomiwa Sunday Adebayo, 2025. "Projecting a long‐term healthcare expenditure in the United States: Do climate change, globalization, and technological innovation play a major role?," Natural Resources Forum, Blackwell Publishing, vol. 49(3), pages 2248-2273, August.
    16. 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.
    17. Megha Agarwalla & Tarak Nath Sahu, 2024. "Do human capital development and innovation matter in sustaining economic development? Panel data evidence from selected developing economies," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(6), pages 6864-6880, December.
    18. 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.
    19. Alejandro F. Rodríguez & M. Nieves Valdés, 2019. "Health care expenditures and GDP in Latin American and OECD countries: a comparison using a panel cointegration approach," International Journal of Health Economics and Management, Springer, vol. 19(2), pages 115-153, June.
    20. 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 / Editura Economica, vol. 0(3(632), A), pages 89-102, Autumn.
    21. 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.
    22. Muhammad Arshad Khan & Muhammad Iftikhar Ul Husnain, 2019. "Is health care a luxury or necessity good? Evidence from Asian countries," International Journal of Health Economics and Management, Springer, vol. 19(2), pages 213-233, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

    Statistics

    Access and download statistics

    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:kap:ijhcfe:v:16:y:2016:i:1:p:23-49. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.