International Conference on Eurasian Economies
2-4 September 2020 – Baku - AZERBAIJAN
Paper properties
Paper ID : 2370
Status : Paper published
Language : Turkish
Topic : Growth and Development
Presenter: Mrs. Zeynep Emir
Presentation Location : Beykent
Session : 2A Büyüme
Health Expenditure-Economic Growth Relationship in OECD Countries
OECD Ülkelerinde Sağlık Harcamaları-Ekonomik Büyüme İlişkisi
- Assoc. Prof. Dr. Mustafa Batuhan Tufaner (Istanbul Beykent University, Türkiye)
- Fatma Dizge (Istanbul Beykent University, Türkiye)
- Mrs. Zeynep Emir (Istanbul Beykent University, Türkiye)
Abstract
Capital accumulation is one of the most important components of economic growth. Health expenditure is also one of the ways to increase capital accumulation and thus economic growth. Therefore, the relationship between health expenditure and economic growth is of great importance especially for developing countries. In this context, the relationship between health expenditures and economic growth was investigated for the period 2000-2016 and for 36 OECD countries. For this purpose, firstly unit root tests were performed in the study and then panel cointegration and panel causality tests were applied to determine the relationship between the two variables. Since there was a cross-sectional dependence in the variables, second-generation panel tests were used. As a result of the cointegration test, it is understood that there is no cointegration relationship between health expenditures and economic growth. The panel causality test revealed that there was no causality from health expenditures to economic growth, but there was a causality relationship from economic growth to health expenditures. Findings from the study show that health expenditure does not affect economic growth, but economic growth increases health expenditure in the short term. Therefore, it can be stated that developing countries have the advantage of time to increase the quality of health services.
JEL codes: I00, I15
Tufaner, Mustafa Batuhan, Dizge, Fatma, Emir, Zeynep (2020). "Health Expenditure-Economic Growth Relationship in OECD Countries" in Proceedings of International Conference of Eurasian Economies 2020, pp.34-39, Baku - AZERBAIJAN.
DOI: https://doi.org/10.36880/C12.02370
