Research Article

Does Urbanization Induce the Health Expenditures? A Dynamic Macro-Panel Analysis for Developing Countries

Number: 61 July 23, 2019
EN TR

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

  1. Abbas, F., & Hiemenz, U. (2011). Determinants of public health expenditures in Pakistan. (Center for Development Research (ZEF) Discussion Papers on Development Policy No. 158). Retrieved from https://www.econstor.eu/bitstream/10419/84800/1/679510230.pdf.
  2. Addo, J., Smeeth, L., & Leon, D.A. (2007). Hypertension in Sub-Saharan Africa a systematic review. Hypertension, 50, 1012-1018.
  3. Al-Mulali, U., Fereidouni, H.G., Lee, J.Y.M., & Che Sab, C.N.B. (2013). Exploring the relationship between urbanization,energy consumption, and CO2 emission in MENA countries. Renewable and Sustainable Energy Reviews, 23, 107-112.
  4. Allison, P.D. (2009). Fixed effects regression models. California: SAGE Publications.
  5. Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277-297.
  6. Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68, 29-51.
  7. Bac, C., & Le Pen, Y. (2002, July). An international comparison of healthcare expenditure determinants. Paper presented at the 10th International Conference on Panel Data. Retrieved from https://econpapers.repec.org/paper/cpdpd2002/c5-1.htm.
  8. Baltagi, B.H., & Moscone, F. (2010). Healthcare expenditure and income in the OECD reconsidered: Evidence from panel data. Economic Modelling, 27, 804-811.

Details

Primary Language

English

Subjects

-

Journal Section

Research Article

Publication Date

July 23, 2019

Submission Date

May 24, 2019

Acceptance Date

July 16, 2019

Published in Issue

Year 2019 Number: 61

APA
Çetin, M. A., & Bakırtaş, İ. (2019). Does Urbanization Induce the Health Expenditures? A Dynamic Macro-Panel Analysis for Developing Countries. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, 61, 208-222. https://izlik.org/JA86JL68GK
AMA
1.Çetin MA, Bakırtaş İ. Does Urbanization Induce the Health Expenditures? A Dynamic Macro-Panel Analysis for Developing Countries. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi. 2019;(61):208-222. https://izlik.org/JA86JL68GK
Chicago
Çetin, Mümin Atalay, and İbrahim Bakırtaş. 2019. “Does Urbanization Induce the Health Expenditures? A Dynamic Macro-Panel Analysis for Developing Countries”. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, nos. 61: 208-22. https://izlik.org/JA86JL68GK.
EndNote
Çetin MA, Bakırtaş İ (July 1, 2019) Does Urbanization Induce the Health Expenditures? A Dynamic Macro-Panel Analysis for Developing Countries. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi 61 208–222.
IEEE
[1]M. A. Çetin and İ. Bakırtaş, “Does Urbanization Induce the Health Expenditures? A Dynamic Macro-Panel Analysis for Developing Countries”, Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, no. 61, pp. 208–222, July 2019, [Online]. Available: https://izlik.org/JA86JL68GK
ISNAD
Çetin, Mümin Atalay - Bakırtaş, İbrahim. “Does Urbanization Induce the Health Expenditures? A Dynamic Macro-Panel Analysis for Developing Countries”. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi. 61 (July 1, 2019): 208-222. https://izlik.org/JA86JL68GK.
JAMA
1.Çetin MA, Bakırtaş İ. Does Urbanization Induce the Health Expenditures? A Dynamic Macro-Panel Analysis for Developing Countries. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi. 2019;:208–222.
MLA
Çetin, Mümin Atalay, and İbrahim Bakırtaş. “Does Urbanization Induce the Health Expenditures? A Dynamic Macro-Panel Analysis for Developing Countries”. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, no. 61, July 2019, pp. 208-22, https://izlik.org/JA86JL68GK.
Vancouver
1.Mümin Atalay Çetin, İbrahim Bakırtaş. Does Urbanization Induce the Health Expenditures? A Dynamic Macro-Panel Analysis for Developing Countries. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi [Internet]. 2019 Jul. 1;(61):208-22. Available from: https://izlik.org/JA86JL68GK