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The Impact of Economic Factors on Public Health Expenditure in Türkiye: Principal Component Analysis Evaluation for the Period 2002-2022

Year 2024, Volume: 9 Issue: 2, 346 - 366, 30.06.2024
https://doi.org/10.30784/epfad.1455475

Abstract

This study analyzes the economic factors affecting public health expenditure in Türkiye from 2002 to 2022. The main objective is to identify the economic reasons for the decreasing share of public health expenditure in Gross Domestic Product (GDP). It examines macroeconomic variables such as GDP per capita, unemployment rate, labor force participation rate, consumer price index, tax revenue, and exchange rate using principal component analysis (PCA). The results show that GDP per capita, exchange rate, and tax revenue significantly impact public health expenditure, indicating a direct relationship between economic growth and health spending. The unemployment rate does not directly affect public health expenditure, while an increase in labor force participation rate can reduce it. This study underscores the importance of macroeconomic stability and effective economic policies for sustainable health financing in Türkiye. By using long-term data, it provides a comprehensive analysis of how economic factors impact health expenditure, distinguishing it from other studies in the literature. The findings emphasize that a healthy economy leads to increased public investment in health services.

References

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Türkiye'de Ekonomik Faktörlerin Kamu Sağlık Harcamaları Üzerine Etkileri: 2002-2022 Yılları Arası Dönemin Temel Bileşenler Analizi ile Değerlendirilmesi

Year 2024, Volume: 9 Issue: 2, 346 - 366, 30.06.2024
https://doi.org/10.30784/epfad.1455475

Abstract

Bu çalışma, 2002-2022 yılları arasında Türkiye'de kamu sağlık harcamalarını etkileyen ekonomik faktörleri analiz etmektedir. Temel amaç, kamu sağlık harcamalarının Gayri Safi Yurt İçi Hasıla (GSYİH) içindeki payının azalmasının ekonomik nedenlerini belirlemektir. Temel bileşenler analizi (PCA) kullanılarak kişi başına GSYİH, işsizlik oranı, işgücüne katılım oranı, tüketici fiyat endeksi, vergi geliri ve döviz kuru gibi makroekonomik değişkenler incelenmiştir. Sonuçlar kişi başına düşen GSYİH, döviz kuru ve vergi gelirinin kamu sağlık harcamalarını önemli ölçüde etkilediğini ve ekonomik büyüme ile sağlık harcamaları arasında doğrudan bir ilişki olduğunu göstermektedir. İşsizlik oranı kamu sağlık harcamalarını doğrudan etkilemezken, işgücüne katılım oranındaki artış harcamaları azaltabilmektedir. Bu çalışma, Türkiye'de sürdürülebilir sağlık finansmanı için makroekonomik istikrarın ve etkili ekonomi politikalarının önemini vurgulamaktadır. Uzun vadeli verileri kullanarak, ekonomik faktörlerin sağlık harcamalarını nasıl etkilediğine dair kapsamlı bir analiz sunmakta ve literatürdeki diğer çalışmalardan ayrılmaktadır. Bulgular, sağlıklı bir ekonominin sağlık hizmetlerine yapılan kamu yatırımlarının artmasına yol açtığını vurgulamaktadır.

References

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  • Altınöz, B. and Aslan, A. (2019). Eğitim ve sağlık faktörleri bağlamında beşeri sermayenin ekonomik büyümeye katkısı: N-11 ülkeleri için bir uygulama. In A. Umut (Ed.), 3. International economic research and financial markets congress proceeding book (pp. 183-194). Paper presented at the International Economics Research and Financial Markets Congress, Gaziantep, Türkiye.
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  • Ataklı-Yavuz, R. and Yılmaztürk, R. G. (2023). Sağlık harcamalarının ekonomik etkileri: Türkiye örneği. Yönetim ve Ekonomi Araştırmaları Dergisi, 21(3), 163-175. https://doi.org/10.11611/yead.1344037
  • Atilgan, E., Kiliç, D. and Ertuğrul, H. M. (2017). The dynamic relationship between health expenditure and economic growth: Is the health-led growth hypothesis valid for Türkiye? The European Journal of Health Economics, 18(5), 567–574. https://doi.org/10.1007/s10198-016-0810-5
  • Bieszk-Stolorz, B. and Dmytrów, K. (2023). The well-being-related living conditions of elderly people in the European Union - Selected aspects. Sustainability, 15(24), 16823. https://doi.org/10.3390/su152416823
  • Boyacioğlu, E.Z. and Terzi̇oğlu, M.K. (2022). Do health spending and economic growth matter in development? Evidence from Türkiye. Ekonomi Politika ve Finans Araştırmaları Dergisi, 7(Özel Sayı), 19-32. https://doi.org/10.30784/epfad.1147618
  • Chao, Y. and Wu, C.-J. (2017). Principal component-based weighted indices and a framework to evaluate indices: Results from the Medical Expenditure Panel Survey 1996 to 2011. PLoS ONE, 12(8), e0183997. https://doi.org/ 10.1371/journal.pone.0183997
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  • Dorlach, T. and Yeğen, O. (2023). Universal health coverage with private options: The politics of Türkiye’s 2008 health reform. Studies in Comparative International Development, 58(3), 430–456. https://doi.org/10.1007/s12116-023-09402-2
  • Erdogan, S. and Erdogan, E.S. (2023). Analyzing the asymmetric effect of disaggregated health expenditures on economic growth. Quality & Quantity, 57(3), 2673–2686. https://doi.org/10.1007/s11135-022-01487-6
  • Erus, B. and Hatipoğlu, O. (2017). Health policy and redistribution: Türkiye's health transformation program in perspective. Health Policy and Planning, 32(8), 1120-1127. https://doi.org/10.1093/heapol/czx062
  • Esen, E. and Çelik Keçili, M. (2022). Economic growth and health expenditure analysis for Türkiye: Evidence from time series. Journal of the Knowledge Economy, 13, 1786–1800. https://doi.org/10.1007/s13132-021-00789-8.
  • Euronews. (2022). Sağlık harcamalarının milli gelire oranı. Retrieved from https://tr.euronews.com/saglik/2022/04/05/sagl-k-harcamalar-n-n-milli-gelire-oran-oecd-ve-ab-de-sagl-ga-en-az-pay-ay-ran-ulke-turkiy /(18/3/2024)
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  • Gerdtham, U.-G., Søgaard, J., Andersson, F. and Jönsson, B. (1992). An econometric analysis of health care expenditure: A cross-section study of the OECD countries. Journal of Health Economics, 11(1), 63–84. https://doi.org/10.1016/0167-6296(92)90025-V
  • Gerdtham, U.G. and Jönsson, B. (2000). International comparisons of health expenditure: Theory, data and econometric analysis. In A.J. Culyer and J.P. Newhouse (Eds.), Handbook of health economics (pp. 11-53), https://doi.org/10.1016/S1574-0064(00)80160-2
  • Getzen, T.E. and Poullier, J.P. (1992). International health spending forecasts: Concepts and evaluation. Social Science & Medicine, 34(9), 1057-1068. https://doi.org/10.1016/0277-9536(92)90106-M
  • Guo, J., Jing, Y., Nguyen, K., Fan, H., Li, X. and Kelton, C. (2008). Principal components analysis of drug expenditure and utilisation trends for major therapeutic classes in US Medicaid programmes. Journal of Medical Economics, 11(4), 671-694. https://doi.org/10.3111/13696990802596095
  • Human Rights Watch. (2023). Governments should step up public health care spending. Retrieved from https://www.hrw.org/news/2023/09/21/governments-should-step-public-health-care-spending
  • Jakovljevic, M., Sugahara, T., Timofeyev, Y. and Rancic, N. (2020). Predictors of (in)efficiencies of healthcare expenditure among the leading Asian economies – Comparison of OECD and non-OECD nations. Risk Management and Healthcare Policy, 13, 2261–2280. https://doi.org/10.2147/RMHP.S266386
  • Kara, A. (2013). A low quality–high cost–low satisfaction trap in public health care: A model and an efficiency-quality-welfare improving stochastic resolution. Quality & Quantity, 47(4), 2081–2093. https://doi.org/10.1007/s11135-011-9643-6
  • Kurt, S. (2015). Government health expenditures and economic growth: A Feder-Ram approach for the case of Türkiye. International Journal of Economics and Financial Issues, 5(2), 441–447. Retrieved from https://dergipark.org.tr/en/pub/ijefi/
  • Liu, Y.-H., Chang, W.-S. and Chen, W.-Y. (2019). Health progress and economic growth in the United States: The mixed frequency VAR analyses. Quality & Quantity, 53, 1895-1911. https://doi.org/10.1007/s11135-019-00847-z
  • Lorenzoni, L., Belloni, A. and Sassi, F. (2014). Health-care expenditure and health policy in the USA versus other high-spending OECD countries. The Lancet, 384(9937), 83–92. https://doi.org/10.1016/S0140-6736(14)60571-7
  • Munsur, A.M., Atia, A., Koffi, A.K. and Kawahara, K. (2009). Household out-of-pocket expenditures on health care in Bangladesh according to principal component analysis (PCA). Bioscience Trends, 3(1), 25-31. https://doi.org/10.5582/bst.3.25
  • Ministry of Family, Labor and Social Services. (2020). OECD ve AB ülkelerinde sağlık ve geri ödeme sistemleri. Ankara: Sosyal Güvenlik Kurumu.
  • Nghiem, S.H. and Connelly, L.B. (2017). Convergence and determinants of health expenditures in OECD countries. Health Economics Review, 7(1), 29. https://doi.org/10.1186/s13561-017-0164-4
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  • Okunade, A.A. and Suraratdecha, C. (2000). Health care expenditure inertia in the OECD countries: A heterogeneous analysis. Health Care Management Science, 3(1), 31–42. https://doi.org/10.1023/a:1019020802989
  • Özen, A. and Köse, C.B. (2022). Türkiye’de kamu harcaması bileşenlerinin ekonomik büyümeye etkisi. Ekonomi Politika ve Finans Araştırmaları Dergisi, 7(1), 32-52. https://doi.org/10.30784/epfad.1006124
  • Panopoulou, E. and Pantelidis, T. (2011). Convergence in per capita health expenditures and health outcomes in the OECD countries. Applied Economics, 44(30), 3909–3920. https://doi.org/10.1080/00036846.2011.583222
  • Peker Say, N. and Yücel, M. (2006). Energy consumption and CO2 emissions in Türkiye: Empirical analysis and future projection based on an economic growth. Energy Policy, 34(18), 3870–3876. https://doi.org/10.1016/j.enpol.2005.08.024
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There are 55 citations in total.

Details

Primary Language English
Subjects Time-Series Analysis, Labor Economics, Health Economy
Journal Section Makaleler
Authors

Zeynep Özmen Bol 0000-0002-5271-1344

Publication Date June 30, 2024
Submission Date March 19, 2024
Acceptance Date June 29, 2024
Published in Issue Year 2024 Volume: 9 Issue: 2

Cite

APA Özmen Bol, Z. (2024). The Impact of Economic Factors on Public Health Expenditure in Türkiye: Principal Component Analysis Evaluation for the Period 2002-2022. Ekonomi Politika Ve Finans Araştırmaları Dergisi, 9(2), 346-366. https://doi.org/10.30784/epfad.1455475