Does Urbanization Induce the Health Expenditures? A Dynamic Macro-Panel Analysis for Developing Countries
Abstract
Fast growing urban population brings some opportunities while it can also causes significant health costs, especially in developing countries. This study aims to investigate the possible impact of urbanization on health expenditures in 89 developing countries during the period 2006-2015 by using both static and dynamic panel data techniques. Fixed Effects (FE) estimator results showed that the health expenditures per capita has a positive relationship with income per capita, the share of government expenditures, out-of-pocket payments per capita, the share of population ages 65 and above. Furthermore, FE findings revealed that the increased urbanization also induces the healthcare expenditures in developing countries. In addition, dynamic panel estimation method is also applied in the empirical analysis to avoid the possible endogeneity problem and to consider the dynamic properties. Thus, Generalised Methods of Moments (GMM) findings showed that the urbanization leads healthcare expenditures in developing countries. Thereby, GMM results are coherence with the FE findings. Consequently, the empirical results indicate the importance of urbanization as a determinant of healthcare expenditures. Therefore, developing countries’ policy makers should re-consider their urban development policies to prevent from the negative externalities of rapid urbanization.
Keywords
References
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Details
Primary Language
English
Subjects
-
Journal Section
Research Article
Authors
İbrahim Bakırtaş
0000-0003-0945-2823
Türkiye
Publication Date
July 23, 2019
Submission Date
May 24, 2019
Acceptance Date
July 16, 2019
Published in Issue
Year 2019 Number: 61