The Relationship between Health Expenditures and Economic Growth in G7 Countries

Yıldız Serdar

The Relationship between Health Expenditures and Economic Growth in G7 Countries

Abstract

The Present study endeavors to examine the relationship between health expenditure and economic growth for the case of G7 countries over the period of 1970 to 2017 except France and Italy which is over the period of 1987 to 2017 due to lack of data from 1970 to 1986. The paper uses modern time – series econometric techniques to test the propositions. Johansen Co-integration, Granger and Toda Yamamoto causality test has been applied to test the existence of long run co-integration and the causality between health expenditure and economic growth. Finding of this study endeavors a positive and statistically significant co-integration for all countries, no causality for the France and Italy, bi-directional causality for Germany and unidirectional causality for other countries from health expenditure to economic growth.

Keywords

References

Akram,N., Padda, I.U.H., Khan, M., “The Long Term Impact of Health on Economic Growth in Pakistan,” Pakistan development review 47(4):487-500, 2008. https://www.researchgate.net/publication/46532484_The_Long_Term_Impact_of_Health_on_Economic_Growth_in_Pakistan
Balayev, A., “The structure of public spending and economic growth in Russia,” Russian Journal of Economics, 2019. www.rujec.org
Bedir, S., “Healthcare Expenditure and Economic Growth in Developing Countries,”2016. http://www.hrpub.org/download/20160229/AEB2-11805616.pdf
Bloom, D.E., Canning, D., “Population Health and Economic Growth,” 2008. https://siteresources.worldbank.org/EXTPREMNET/Resources/4899601338997241035/Growth_Commission_Working_Paper_24_Population_Health_Economic_Growth.pdf
Chetin M., Ecevit, E., “Sağlık Harcamalarının Ekonomik Büyüme Üzerindeki Etkisi: OECD Ülkeleri Üzerine Bir Panel Regresyon Analizi,” Doğuş Üniversitesi Dergisi, 11 (2) 2010, 166-182, 2010. https://openaccess.dogus.edu.tr/xmlui/bitstream/handle/11376/298/cetin.pdf?sequence=1
Engle, R. F., Granger. C.W.J., “Integration and Error Correction: Representation, Estimation, and Testing,” 1987. http://www.ntuzov.com/Nik_Site/Niks_files/Research/papers/stat_arb/EG_1987.pdf
Halıcıoglu, F., “Testing Wagner's Law for Turkey, 1960-2003,” 2003. https://www.researchgate.net/publication/23749250_Testing_Wagner's_Law_for_Turkey_1960-2003
Johansen, S., & Juselius, K.," Maximum likelihood estimation and inference on cointegration with applications to the demand for money," Ox-ford Bulletin of Economics and statistics, 52(2), 169-210, 1990.

Keskin, A., “G20 Ülkelerinin CO2 Emisyonları ve Kişi Başına Düşen Milli Gelirin 1960-2012 Dönemi Arasındaki Ampirik Analizi,” 2020. https://dergipark.org.tr/en/download/article-file/1180623
Kuloglu, A., Topcu, E., “The Relationship between Health and Growth in Eurasian Economic Union,” Eurasian Journal of Economics and Fi-nance, 2016. http://eurasianpublications.com/Eurasian-Journal-of-Economics-and-Finance/Vol.4-No.4-2016/EJEF-5.pdf
Kurt, S., “Government Health Expenditures and Economic Growth: A Feder–Ram Approach for the Case of Turkey,” 2015. http://dergipark.gov.tr/download/article-file/363012
MacKinnon, J. G., Haug, A. A. & Michelis, L.," Numerical distribution functions of likelihood ratio tests for cointegration," Journal of Applied Econometrics, 14, pp. 563- 577, 1999.
Narayan, S., Narayan, P. K., Mishra, S., “Investigating the relationship between health and economic growth: Empirical evidence from a panel of 5 Asian countries,” Journal of Asian Economics, 2010. https://ideas.repec.org/a/eee/asieco/v21y2010i4p404-411.html
Rosen, S., "A theory of life earning," Journal of Political Economy, 84, S45-S67, 1976. https://www.jstor.org/stable/pdf/1831102.pdf
Schultz, T. W. "Investment in human capital," American Economic Review, pp. 1-17, 1961. https://www.jstor.org/stable/pdf/1818907.pdf
Sghari, M.B.A., Hammami, S., “Relationship between Health Expenditure and GDP in Developed Countries,” IOSR Journal Of Pharmacy, 2013. http://www.iosrphr.org/papers/v3i4/Part.3/G0343041045.pdf
Some, J., Pasali, S., Kaboine, M., “Exploring the Impact of Healthcare on Economic Growth in Africa,” Redfame Publishing, 2019. http://www.redfame.com/journal/index.php/aef/article/viewFile/4110/4385
Tang, C. F., “Multivariate Granger causality and the dynamic relationship between health spending, income, and health price in Malaysia,” MPRA Paper No. 27298, 2010. https://mpra.ub.uni-muenchen.de/27298/1/MPRA_paper_27298.pdf
Tirasoglu, M., Yildirim B., “Yapısal Kırılma Durumunda Sağlık Harcamaları ve Ekonomik Büyüme İlişkisi: Türkiye Üzerine Bir Uygulama,” Electronic Journal of Vocational Colleges, 2012. https://dergipark.org.tr/download/article-file/62604 Tunali, C.B., Saruç, N.T., “An Empirical Analysis on the Relationship between Health Care Expenditures and Economic Growth in the Europe-an Union Countries,” European Journal of Medicine and Natural Sciences, 2018. http://journals.euser.org/index.php/ejmn/article/view/4371
Uzawa, H., "Optimal technical change in an aggregate model of economic growth," International Economic Review, pp. 18-31, 1965. https://www.jstor.org/stable/pdf/2525621.pdf

Details

Primary Language

English

Subjects

Economics

Journal Section

Research Article

Authors

Yıldız Serdar ^*
Türkiye

Publication Date

July 31, 2020

Submission Date

July 14, 2020

Acceptance Date

July 31, 2020

Published in Issue

Year 2020 Volume: 1 Number: 1

IZ

https://izlik.org/JA58MJ97XG

Cite

RIS / Bibtex

APA

Serdar, Y. (2020). The Relationship between Health Expenditures and Economic Growth in G7 Countries. Journal of Statistics and Applied Sciences, 1(1), 23-39. https://izlik.org/JA58MJ97XG

AMA

1.Serdar Y. The Relationship between Health Expenditures and Economic Growth in G7 Countries. JSAS. 2020;1(1):23-39. https://izlik.org/JA58MJ97XG

Chicago

Serdar, Yıldız. 2020. “The Relationship Between Health Expenditures and Economic Growth in G7 Countries”. Journal of Statistics and Applied Sciences 1 (1): 23-39. https://izlik.org/JA58MJ97XG.

EndNote

Serdar Y (July 1, 2020) The Relationship between Health Expenditures and Economic Growth in G7 Countries. Journal of Statistics and Applied Sciences 1 1 23–39.

IEEE

[1]Y. Serdar, “The Relationship between Health Expenditures and Economic Growth in G7 Countries”, JSAS, vol. 1, no. 1, pp. 23–39, July 2020, [Online]. Available: https://izlik.org/JA58MJ97XG

ISNAD

Serdar, Yıldız. “The Relationship Between Health Expenditures and Economic Growth in G7 Countries”. Journal of Statistics and Applied Sciences 1/1 (July 1, 2020): 23-39. https://izlik.org/JA58MJ97XG.

JAMA

1.Serdar Y. The Relationship between Health Expenditures and Economic Growth in G7 Countries. JSAS. 2020;1:23–39.

MLA

Serdar, Yıldız. “The Relationship Between Health Expenditures and Economic Growth in G7 Countries”. Journal of Statistics and Applied Sciences, vol. 1, no. 1, July 2020, pp. 23-39, https://izlik.org/JA58MJ97XG.

Vancouver

1.Yıldız Serdar. The Relationship between Health Expenditures and Economic Growth in G7 Countries. JSAS [Internet]. 2020 Jul. 1;1(1):23-39. Available from: https://izlik.org/JA58MJ97XG