The Relationship between Health Expenditure and Economic Growth in Turkey from 1980 to 2015

Abstract

In this study, the change in health spending -both private and public- is examined with regard to the effects of the output level in Turkey from 1980 and 2015 by using investment. This research study aims to investigate the association between healthcare expenditure out of Gross Domestic Product (GDP) and GDP per capita by using ARDL, which is autoregressive distributed lag bounds testing approach of co-integration developed by Pesaran, Shin and Smith (2001). Since this method provides a comprehensive econometric analysis for the data that are stationary at various levels, and the existence of the co-integration among the variables can be detected even though the data becomes stationary at I(0) or I(1), employing ARDL is a quite convenient method for the study. The results of bounding test to co-integration represent that the variables are co-integrated, there is a significant relationship between them in the long-run.

Keywords

• Health expenditure,GDP per capita,Bound test analysis

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