title: Is income relevant for health expenditure and economic growth nexus?
abstract: This paper examines the relationship between health expenditure and economic growth using panel data consisting low and high-income countries. Using dynamic panel data methodology, we analyze twenty five high-income and nineteen low-income economies for the periods of 1995-2012 and 1997-2009, respectively. We find reciprocal relationship between health expenditure and economic growth in the short run and one-way causality from economic growth to public health expenditure in the long-run. In high-income countries, there is a two-way causality for both private and public health expenditures in the short-run, while in the long-run there is a one-way causality between economic growth and private health expenditures. The crucial finding of this study is that private health expenditures have negative influence on economic growth while public health expenditures have both negative and statistically significant effect.
authors.affiliation: Faculty of Economics and Administrative Sciences, Melikşah University, Kayseri, Turkey.
authors.forename: Nadide Sevil
authors.initials: NS
authors.lastname: Halıcı-Tülüce
authors.affiliation: Faculty of Economics and Administrative Sciences, Bozok University, Yozgat, Turkey.
authors.forename: İbrahim
authors.initials: İ
authors.lastname: Doğan
authors.affiliation: Faculty of Economics and Administrative Sciences, Erciyes University, Kayseri, Turkey. cdumrul@erciyes.edu.tr.
authors.forename: Cüneyt
authors.initials: C
authors.lastname: Dumrul
mesh_terms: D003906:Developing Countries; D057217:Economic Development; D057172:Economic Recession; D005102:Health Expenditures; D006801:Humans; D007182:Income; D007250:Inflation, Economic; D017059:Models, Econometric; D018803:Models, Economic; D011634:Public Health / Q000191:economics*
keywords: Causality; Economic growth; Health expenditure; SGMM