Research Article
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Year 2018, Volume: 1 Issue: 1, 1 - 8, 30.03.2018

Abstract

References

  • Atilgan, E., Kilic, D., & Ertugrul, H.M. (2017). The dynamic relationship between health expenditure and economic growth: is the health-led growth hypothesis valid for Turkey?. European Journal of Health Economics, 18(5), 567-574.
  • Bedir S. (2016). Healthcare expenditure and economic growth in developing countries. Advances in Economics and Business, 4(2), 76-86. doi:10.13189/aeb.2016.040202
  • Brown, R.L., Durbin, J., & Evans, J.M. (1975). Techniques for testing the consistency of regression relations over time. Journal of Royal Statistical Society, 37(2), 149–192. Retrieved from http://www.jstor.org/stable/2984889
  • Cetin, M., & Ecevit, E. (2010). Sağlık harcamalarının ekonomik büyüme üzerindeki etkisi. OECD ülkeleri üzerine bir panel regresyon analizi. Doğuş Üniversitesi Dergisi, 11(2), 166–182.
  • Dickey, D.A., & Fuller, W.A. (1981). Likelihood ratio statistics for autoregressive time series with a unit root. Econometrica. Journal of the Econometric Society, 49(4), 1057-1072. doi: 10.2307/1912517
  • Dolado, J.J. and Lütkepohl, H. (1996). Making wald tests work for co-integrated VAR systems. Econometric Reviews, 15(4), 369-386. doi:10.1080/07474939608800362
  • Economy Watch (1980-2014). Economy Watch for investment rate database. Retrieved from http://www.economywatch.com/economic-statistics/economi indicators/Investment_Percentage_of_GDP/
  • Eggoh, J., Houeninvo, H., & Sossou, G.A. (2015). Education, health and economic growth in African countries. Journal of Economic Development, 40(1), 93–111. doi:10.1080/00220380600576490
  • Engle, R.F., & Granger W.J. (1987). Co-integration and error correction: Representation, estimation, and testing. Econometrica: Journal of the Econometric Society, 55(2), 251-276. doi:0012-9682(198703)55:2<251:CAECRE>2.0.CO;2-T
  • Granger, C.W.J. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica: Journal of the Econometric Society, 37(3), 424-438. doi:10.2307/1912791
  • Halıcı-Tülüce, N.S., Doğan, İ., & Dumrul, C. (2016). Is income relevant for health expenditure and economic growth nexus?. International Journal of Health Economics and Management, 16(1), 23-49.
  • Hassan, M. S., & Kalim, R. (2012). The triangular causality among education, health and economic growth: A time series analysis of Pakistan. World Applied Sciences Journal, 18(2), 196–207. doi:10.5829/idosi.wasj.2012.18.02.3332
  • Johansen, S. (1988). Statistical analysis of co-integration vectors. Journal of Economic Dynamics and Control, 12(2-3), 231-254. doi:10.1016/0165-1889(88)90041-3
  • Johansen, S., & Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration-with applications to the demand for money. Oxford Bulletin of Economics and Statistics, 52(2), 169-210. doi:10.1111/j.1468-0084.1990.mp52002003.x
  • Kwiatkowski, D., Phillips, P.C., Schmidt, P., & Shin, Y. (1992). Testing the null hypothesis of stationarity against the alternative of a unit root: How sure are we that economic time series have a unit root?. Journal of econometrics, 54(1-3), 159-178. doi:10.1016/0304-4076(92)90104-Y
  • Maitra, B., & Mukhopadhyay, C.K. (2012). Public spending on education, health care and economic growth in selected countries of Asia and the Pacific. Asia Pacific Development Journal, 19(2), 19–48.
  • Munnell, A.H. (1992). Policy watch: infrastructure investment and economic growth. The Journal of Economic Perspectives, 6(4), 189-198. Retrieved from http://www.jstor.org/stable/2138275
  • Mushkin, S.J. (1962). Health as an investment. Journal of Political Economy, 70(5), 129-157. doi:10.1086/258730
  • OECD (1980-2014). Organisation for economic cooperation and development for total health expenditure rate database. Retrieved from http://stats.oecd.org/index.aspx?DataSetCode=HEALTH_STAT
  • Ozturk, S., & Topçu, E. (2014). Health expenditures and economic growth: Evidence from G8 countries. International Journal of Economics and Empirical Research, 2(6), 256-261.
  • Pradhan, R.P. (2010). The long run relation between health spending and economic growth in 11 OECD countries: Evidence from panel cointegration. International Journal of Economic Perspectives, 4(2), 427–438
  • Pesaran M.H., Shin, Y., & Smith, R.J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. doi:10.1002/jae.616
  • Phillips, P. C., & Perron, P. (1988). Testing for a unit root in time series regression. Biometrika, 75(2), 335-346. doi:10.2307/2336182
  • Schultz, T. P. (2005). Productive benefits of health: Evidence from low-income countries. IZA Discussion Paper No. 1482, Yale University Economic Growth Center Discussion Paper No. 903. Retrieved from https://ssrn.com/abstract=645001
  • Smith, J.P. (1998). Socioeconomic Status and Health. American Economic Review, 88(2), 192-196. Retrieved from http://www.jstor.org/stable/116917
  • Strauss, J., & Thomas, D. (1998). Health, nutrition and economic development. Journal of Economic Literature, 36(2), 766-817. Retrieved from http://www.jstor.org/stable/2565122
  • Sülkü, S.N., & Caner, A. (2011). Health care expenditures and gross domestic product: The Turkish case. The European Journal of Health Economics, 12(1), 29–38.
  • Toda, H.Y., & Yamamoto, T. (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66(1-2), 225-250. doi:10.1016/0304-4076(94)01616-8

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

Year 2018, Volume: 1 Issue: 1, 1 - 8, 30.03.2018

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.

References

  • Atilgan, E., Kilic, D., & Ertugrul, H.M. (2017). The dynamic relationship between health expenditure and economic growth: is the health-led growth hypothesis valid for Turkey?. European Journal of Health Economics, 18(5), 567-574.
  • Bedir S. (2016). Healthcare expenditure and economic growth in developing countries. Advances in Economics and Business, 4(2), 76-86. doi:10.13189/aeb.2016.040202
  • Brown, R.L., Durbin, J., & Evans, J.M. (1975). Techniques for testing the consistency of regression relations over time. Journal of Royal Statistical Society, 37(2), 149–192. Retrieved from http://www.jstor.org/stable/2984889
  • Cetin, M., & Ecevit, E. (2010). Sağlık harcamalarının ekonomik büyüme üzerindeki etkisi. OECD ülkeleri üzerine bir panel regresyon analizi. Doğuş Üniversitesi Dergisi, 11(2), 166–182.
  • Dickey, D.A., & Fuller, W.A. (1981). Likelihood ratio statistics for autoregressive time series with a unit root. Econometrica. Journal of the Econometric Society, 49(4), 1057-1072. doi: 10.2307/1912517
  • Dolado, J.J. and Lütkepohl, H. (1996). Making wald tests work for co-integrated VAR systems. Econometric Reviews, 15(4), 369-386. doi:10.1080/07474939608800362
  • Economy Watch (1980-2014). Economy Watch for investment rate database. Retrieved from http://www.economywatch.com/economic-statistics/economi indicators/Investment_Percentage_of_GDP/
  • Eggoh, J., Houeninvo, H., & Sossou, G.A. (2015). Education, health and economic growth in African countries. Journal of Economic Development, 40(1), 93–111. doi:10.1080/00220380600576490
  • Engle, R.F., & Granger W.J. (1987). Co-integration and error correction: Representation, estimation, and testing. Econometrica: Journal of the Econometric Society, 55(2), 251-276. doi:0012-9682(198703)55:2<251:CAECRE>2.0.CO;2-T
  • Granger, C.W.J. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica: Journal of the Econometric Society, 37(3), 424-438. doi:10.2307/1912791
  • Halıcı-Tülüce, N.S., Doğan, İ., & Dumrul, C. (2016). Is income relevant for health expenditure and economic growth nexus?. International Journal of Health Economics and Management, 16(1), 23-49.
  • Hassan, M. S., & Kalim, R. (2012). The triangular causality among education, health and economic growth: A time series analysis of Pakistan. World Applied Sciences Journal, 18(2), 196–207. doi:10.5829/idosi.wasj.2012.18.02.3332
  • Johansen, S. (1988). Statistical analysis of co-integration vectors. Journal of Economic Dynamics and Control, 12(2-3), 231-254. doi:10.1016/0165-1889(88)90041-3
  • Johansen, S., & Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration-with applications to the demand for money. Oxford Bulletin of Economics and Statistics, 52(2), 169-210. doi:10.1111/j.1468-0084.1990.mp52002003.x
  • Kwiatkowski, D., Phillips, P.C., Schmidt, P., & Shin, Y. (1992). Testing the null hypothesis of stationarity against the alternative of a unit root: How sure are we that economic time series have a unit root?. Journal of econometrics, 54(1-3), 159-178. doi:10.1016/0304-4076(92)90104-Y
  • Maitra, B., & Mukhopadhyay, C.K. (2012). Public spending on education, health care and economic growth in selected countries of Asia and the Pacific. Asia Pacific Development Journal, 19(2), 19–48.
  • Munnell, A.H. (1992). Policy watch: infrastructure investment and economic growth. The Journal of Economic Perspectives, 6(4), 189-198. Retrieved from http://www.jstor.org/stable/2138275
  • Mushkin, S.J. (1962). Health as an investment. Journal of Political Economy, 70(5), 129-157. doi:10.1086/258730
  • OECD (1980-2014). Organisation for economic cooperation and development for total health expenditure rate database. Retrieved from http://stats.oecd.org/index.aspx?DataSetCode=HEALTH_STAT
  • Ozturk, S., & Topçu, E. (2014). Health expenditures and economic growth: Evidence from G8 countries. International Journal of Economics and Empirical Research, 2(6), 256-261.
  • Pradhan, R.P. (2010). The long run relation between health spending and economic growth in 11 OECD countries: Evidence from panel cointegration. International Journal of Economic Perspectives, 4(2), 427–438
  • Pesaran M.H., Shin, Y., & Smith, R.J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. doi:10.1002/jae.616
  • Phillips, P. C., & Perron, P. (1988). Testing for a unit root in time series regression. Biometrika, 75(2), 335-346. doi:10.2307/2336182
  • Schultz, T. P. (2005). Productive benefits of health: Evidence from low-income countries. IZA Discussion Paper No. 1482, Yale University Economic Growth Center Discussion Paper No. 903. Retrieved from https://ssrn.com/abstract=645001
  • Smith, J.P. (1998). Socioeconomic Status and Health. American Economic Review, 88(2), 192-196. Retrieved from http://www.jstor.org/stable/116917
  • Strauss, J., & Thomas, D. (1998). Health, nutrition and economic development. Journal of Economic Literature, 36(2), 766-817. Retrieved from http://www.jstor.org/stable/2565122
  • Sülkü, S.N., & Caner, A. (2011). Health care expenditures and gross domestic product: The Turkish case. The European Journal of Health Economics, 12(1), 29–38.
  • Toda, H.Y., & Yamamoto, T. (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66(1-2), 225-250. doi:10.1016/0304-4076(94)01616-8
There are 28 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Research Articles
Authors

Gizem Erçelik This is me

Publication Date March 30, 2018
Submission Date December 21, 2017
Published in Issue Year 2018 Volume: 1 Issue: 1

Cite

APA Erçelik, G. (2018). The Relationship between Health Expenditure and Economic Growth in Turkey from 1980 to 2015. Journal of Politics Economy and Management, 1(1), 1-8.

The author(s) is (are) the sole responsible for the opinion and views stated in the articles.

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