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The Relationship between public spending on health and economic growth in Algeria: Testing for Cointegration and Causality

Author

Listed:
  • Fatima Boussalem

    (University of Jijel)

  • Zina Boussalem

    (university of jijel)

  • Abdelaziz Taiba

    (university of chlef)

Abstract

This paper investigated the causality and co-integration relationships between public health expenditure and economic growth in Algeria during 1974-2014 using annual data. This paper concentrated on time series co-integration and causality in VECM framework. The findings revealed that there is a long-run causality from public health expenditure to economic growth, while it is not observed any short-run causality from expenditure health to economic growth. The lack of strong link from health to economic growth is not necessarily a reason to reallocate health investment away from the health sector. The improvements in health status will be worth the effort even if they turn out to have little effect on growth.

Suggested Citation

  • Fatima Boussalem & Zina Boussalem & Abdelaziz Taiba, 2014. "The Relationship between public spending on health and economic growth in Algeria: Testing for Cointegration and Causality," Proceedings of International Academic Conferences 0101004, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:0101004
    as

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    References listed on IDEAS

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    Cited by:

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    2. Esra N. Kilci, 2022. "Can We Increase Health Expenditure Per Capita Through Higher Economic Growth? Empirical Evidence from Turkey," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 0(36), pages 137-152, June.
    3. Nor Aziah Abd Kadir & Nur Fakhzan Marwan & Adibah Hussin & Rosmah Nizam & Fazreena Mansor, 2022. "Long Run Analysis between Climate Change, Socio-Economic Factors and Technology on Health Expenditure in Malaysia," International Journal of Human Resource Studies, Macrothink Institute, vol. 12(2), pages 6589-6589, December.
    4. UDUH, Dominic Marior & AZU, Benedict Chioma, 2017. "Human Capital Development and Economic Growth in Nigeria; The Role of Nomadic Education," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 7(11), pages 931-941, November.
    5. Bernard Sarpong & Edward Nketiah-Amponsah & Nkechi S. Owoo, 2020. "Health and Economic Growth Nexus: Evidence from Selected Sub-Saharan African (SSA) Countries," Global Business Review, International Management Institute, vol. 21(2), pages 328-347, April.
    6. Adel Ifa and Imène Guetat, 2019. "The Short and Long Run Causality Relationship Between Public Health Spending and Economic Growth: Evidence from Tunisia and Morocco," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 44(3), pages 19-39, September.
    7. Emilda Hashim* & Norimah Rambeli@ Ramli & Nurhanani Romli & Norasibah Abdul Jalil & Syazwani Mohd Bakri & Ng Woan Ron, 2018. "Determinants of Real GDP in Malaysia," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 97-103:3.

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    More about this item

    Keywords

    public Health Expenditure; Economic Growth; Co-integration; Causality;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

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