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Can We Increase Health Expenditure Per Capita Through Higher Economic Growth? Empirical Evidence from Turkey

Year 2022, Issue: 36, 137 - 152, 29.06.2022
https://doi.org/10.26650/ekoist.2022.36.982652

Abstract

Many researchers indicate that health expenditures positively contribute to economic growth and prosperity, emphasizing that when healthy individuals are more efficient, they make a huge contribution to human capital, which in turn improves productivity. There is also a relationship between economic growth and health expenditures, meaning that health expenditure is a function of income and higher income leads to an increase in spending on health. In this study, we assess whether economic growth has an impact on healthcare expenditure by focusing on an emerging market economy. Therefore, the main objective of this paper is to test the impact of economic performance on health expenditure per capita for Turkey in the period of 1999-2018. In the analysis, the unit root properties are tested by using RALS (Residual Augmented Least Squares) ADF and traditional Augmented Dickey Fuller (ADF) unit root tests. In order to examine the long-run relationship between economic growth and health expenditure per capita, we employ the RALS Engle-Granger and traditional Engle-Granger cointegration tests. The findings of our analysis support the evidence of a long-run impact of economic growth on healthcare expenditure per capita for Turkey in the relevant period.

References

  • Akinci, A. & Tuncer, G. (2016). The Relationship between Health Expenditures and Economic Growth, Journal of Turkish Court of Accounts, 102, 47-61.
  • Atun, R. (2015). Transforming Turkey's Health System-Lessons for Universal Coverage, Global Systems, Harvard University, 373(14), 1285-1289.
  • Baltagi, B. H. & Moscone, F. (2010). Health Care Expenditure and Income in the OECD Reconsidered: Evidence From Panel Data, Economic Modelling, 27(4), 804-811.
  • Bloom, D. E. ve Canning, D. (2000). The Health and Wealth of Nations, Science, 287(5456), 1207-1209.
  • Bloom, D. E., Canning, D., Sevilla, J. (2001). The Effect of Health on Economic Growth: Theory and Evidence. NBER Papers, No: 8587, 1-26.
  • Boussalem, F., Boussalem, Z. & Taiba, A. (2014). The Relationship between Public Spending on Health and Economic Growth in Algeria: Testing for Co-Integration and Causality, International Journal of Business and Management, II(3), 25-39.
  • Brempong, K. G. & Wilson, M. (2004). Health Human Capital and Economic Growth In Sub- Saharan African and OECD Countries, The Quarterly Review of Economics and Finance, 44(2), 296-320.
  • Chaabouni, S., & Saidi, K. (2017). The Dynamic Links between Carbon Dioxide (CO2) Emissions, Health Spending and GDP Growth: A Case Study for 51 Countries, Environmental Research, 158, 137-144.
  • Cima, J. & Almeida, A. S. (2018). Health Expenditure, GDP Growth and The Financial Crisis: A Panel Data Analysis for OECD European Countries”, FEP Working Paper, No: 602.
  • Dormont, B., Oliveira-Martins, J., Pelgrin, F. & Suhrcke, M. (2008). Health Expenditures, Longevity and Growth, SSRN Electronic Journal, https://ssrn.com/abstract=1130315or http://dx.doi.org/10.2139/ssrn.1130315. (Cited 13.01.2020).
  • Dreger, C. & Reimers, H. E., (2005). Health Care Expenditures in OECD Countries: A Panel Unit Root and Cointegration Analysis, International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, 2(2), 5-20.
  • Elmi, M. Z.& Sadeghi, S. (2012). Health Care Expenditures and Economic Growth in Developing Countries: Panel Co-integration and Causality, Middle-East Journal of Scientific Research, 12(1), 88-91.
  • Im K. S., Lee J., Tieslau M. A. (2014). More Powerful Unit Root Tests with Non-normal Errors, in RC Sickles and WC Horrace (eds), Festschrift in Honor of Peter Schmidt: Econometric Methods and Applications, 315-342. Institute for Health Metrics and Evaluation (2017). Turkey. http://www.healthdata.org/turkey (Cited 20.03.2020).
  • Lee, H., Lee, J., & Im, K. (2015). More Powerful Cointegration Tests with Non-normal Errors, Studies in Nonlinear Dynamics & Econometrics, 19(4), 397-413.
  • Lusting, N. (2006). Investing in Health for Economic Development: The Case of Mexico, WIDER Research Paper, No: 2006/30.
  • Ndedi, A. A., Metha, A. & Nisabwe, F. (2017). The Impact of Health Expenditures on Economic Growth of Cameroon: A Literature Review Perspective. Available at SSRN: https://ssrn.com/abstract=3036510 or http://dx.doi.org/10.2139/ssrn.3036510
  • OECD (2014). OECD Reviews of Health Care Quality: Turkey Raising Standards, 25 November 2014. http://www.oecd.org/els/health-systems/Review-of-Health-Care-Quality-Turkey_ExecutiveSummary.pdf (Cited 07.01.2020).
  • OECD (2019). Health at a Glance 2019, OECD Indicators. https://www.oecd.org/health/health-systems/health-at-a-glance-19991312.htm (Cited 25.12.2019).
  • OECD Statistics (2019). Health Expenditure and Finance Statistics. https://stats.oecd.org/Index.aspx?DataSetCode=SHA (Cited 14.11.2020).
  • OECD (2020). Beyond Containment: Health Systems Responses to COVID-19 in the OECD Countries, Updated 20 March, OECD. https://read.oecd-ilibrary.org/view/?ref=119_119689-ud5comtf84&title=Beyond_Containment:Health_systems_responses_to_COVID-19_in_the_OECD (cited 25.03.2020).
  • Ozlale, U. (2007). “Sağlık”lı Ekonomik büyüme, Makro Bakış Dergisi, Kasım Sayısı.
  • Raghupathi, V. & Raghupathi, W. (2020). Healthcare Expenditure and Economic Performance: Insights From the United States Data, Frontiers in Public Health, https://doi.org/10.3389/fpubh.2020.00156. Republic of Turkey Ministry of Health (2016). Health Statistics Yearbook 2016. http://ohsad.org/wp-content/uploads/2017/12/13160.pdf (Cited 25.12.2019).
  • Sachs, J.D. (2001). Macroeconomics and Health: Investing in Health for Economic Development, Report of the Commission on Macroeconomics and Health, WHO Commission on Macroeconomics and Health. World Health Organization. https://apps.who.int/iris/handle/10665/42463 (Cited 20.01.2019).
  • Sahin, D. & Durmus, S. (2019). Analysis of The Effect of Economic Growth And Environmetal Pollution On Health Expenditures in OECD Countries, Finance, Politics and Economic Reviews, 647, 185-201.
  • Sancar, S. & Polat, M. A. (2021). The Relationship between CO2 Emissions, Economic Growth, and Health Expenditures: An Empirical Application for Turkey and Selected Countries, MANAS Journal of Social Studies, 10 (1), 236-252.
  • Turkish Statistical Institute (2020). Statistics Data Portal. https://www.tuik.gov.tr/Home/Index (Cited 14.11.2020).
  • Wang, F. (2015). More Health Expenditure, Better Economic Performance? Empirical Evidence From OECD Countries, Inquiry, 52 (January-December 2015), 1-5.
  • World Bank (2020). Data Catalog. https://datacatalog.worldbank.org/ (Cited 03.02.2020).
  • World Health Organization (2012). Turkey Health System Performance Assessment 2011, May 2012. http://www.euro.who.int/__data/assets/pdf_file/0004/165109/e95429.pdf (Cited 15.11.2019)
  • World Health Organization (2019). Global Spending on Health: A World in Transition, December 2019. https://www.who.int/publications/i/item/WHO-HIS-HGF-HFWorkingPaper-19.4 (Cited 03.04.2021).
  • World Health Organization (2020). Global Spending on Health: Weathering the Storm, December 2020. https://www.who.int/publications/i/item/9789240017788 (Cited 03.04.2021).
  • World Bank Health and Nutrition Statistics (2020). Databank. https://databank.worldbank.org/source/health-nutrition-and-population-statistics (Cited 14.11.2020).
  • Yilanci, V., & Aydin, M. (2018). Türkiye’de Kadın Okullaşmasının Ekonomik Büyüme Üzerindeki Etkisi: Rals-Eg Eşbütünleşme Testi Yaklaşımı. Uluslararası İktisadi ve İdari İncelemeler Dergisi, 101-112.

Ekonomik Büyüme ile Kişi Başına Düşen Sağlık Harcamalarını Arttırılabilir miyiz? Türkiye Örneği

Year 2022, Issue: 36, 137 - 152, 29.06.2022
https://doi.org/10.26650/ekoist.2022.36.982652

Abstract

Birçok iktisatçı, sağlıklı bireylerin verimliliği artırdığını vurgulayarak, sağlık sistemine yapılan yatırımların ekonomik büyümeye olumlu katkıda bulunduğuna işaret etmektedir. Benzer şekilde, sağlık harcamaları gelirin bir fonksiyonudur; gelir arttıkça sağlık harcamaları artmaktadır. Bu çalışmada, temel olarak, gelişmekte olan bir ülkede, ekonomik büyümenin sağlık harcamaları üzerinde etkisi olup olmadığı sorusu cevaplanmaya çalışılmaktadır. Dolayısıyla, bu çalışmanın amacı, Türkiye’de, ekonomik büyüme ile kişi başına düşen sağlık harcamaları arasındaki ilişkinin 1999-2018 dönemi için analiz edilmesidir. Analizde, serilerin durağanlığının test edilmesi amacıyla, geleneksel ADF testine ek olarak, RALS (Residual Augmented Least Squares) ADF birim kök testi uygulanmaktadır. Ekonomik büyüme ve kişi başına sağlık harcamaları arasındaki uzun dönemli ilişkinin test edilmesi amacıyla ise, Engle-Granger ve RALS Engle-Granger kointegrasyon testlerinden yararlanılmaktadır. Analiz sonuçları, ekonomik büyümenin kişi başına düşen sağlık harcamaları üzerinde uzun dönemde etkisi olduğuna işaret etmektedir.

References

  • Akinci, A. & Tuncer, G. (2016). The Relationship between Health Expenditures and Economic Growth, Journal of Turkish Court of Accounts, 102, 47-61.
  • Atun, R. (2015). Transforming Turkey's Health System-Lessons for Universal Coverage, Global Systems, Harvard University, 373(14), 1285-1289.
  • Baltagi, B. H. & Moscone, F. (2010). Health Care Expenditure and Income in the OECD Reconsidered: Evidence From Panel Data, Economic Modelling, 27(4), 804-811.
  • Bloom, D. E. ve Canning, D. (2000). The Health and Wealth of Nations, Science, 287(5456), 1207-1209.
  • Bloom, D. E., Canning, D., Sevilla, J. (2001). The Effect of Health on Economic Growth: Theory and Evidence. NBER Papers, No: 8587, 1-26.
  • Boussalem, F., Boussalem, Z. & Taiba, A. (2014). The Relationship between Public Spending on Health and Economic Growth in Algeria: Testing for Co-Integration and Causality, International Journal of Business and Management, II(3), 25-39.
  • Brempong, K. G. & Wilson, M. (2004). Health Human Capital and Economic Growth In Sub- Saharan African and OECD Countries, The Quarterly Review of Economics and Finance, 44(2), 296-320.
  • Chaabouni, S., & Saidi, K. (2017). The Dynamic Links between Carbon Dioxide (CO2) Emissions, Health Spending and GDP Growth: A Case Study for 51 Countries, Environmental Research, 158, 137-144.
  • Cima, J. & Almeida, A. S. (2018). Health Expenditure, GDP Growth and The Financial Crisis: A Panel Data Analysis for OECD European Countries”, FEP Working Paper, No: 602.
  • Dormont, B., Oliveira-Martins, J., Pelgrin, F. & Suhrcke, M. (2008). Health Expenditures, Longevity and Growth, SSRN Electronic Journal, https://ssrn.com/abstract=1130315or http://dx.doi.org/10.2139/ssrn.1130315. (Cited 13.01.2020).
  • Dreger, C. & Reimers, H. E., (2005). Health Care Expenditures in OECD Countries: A Panel Unit Root and Cointegration Analysis, International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, 2(2), 5-20.
  • Elmi, M. Z.& Sadeghi, S. (2012). Health Care Expenditures and Economic Growth in Developing Countries: Panel Co-integration and Causality, Middle-East Journal of Scientific Research, 12(1), 88-91.
  • Im K. S., Lee J., Tieslau M. A. (2014). More Powerful Unit Root Tests with Non-normal Errors, in RC Sickles and WC Horrace (eds), Festschrift in Honor of Peter Schmidt: Econometric Methods and Applications, 315-342. Institute for Health Metrics and Evaluation (2017). Turkey. http://www.healthdata.org/turkey (Cited 20.03.2020).
  • Lee, H., Lee, J., & Im, K. (2015). More Powerful Cointegration Tests with Non-normal Errors, Studies in Nonlinear Dynamics & Econometrics, 19(4), 397-413.
  • Lusting, N. (2006). Investing in Health for Economic Development: The Case of Mexico, WIDER Research Paper, No: 2006/30.
  • Ndedi, A. A., Metha, A. & Nisabwe, F. (2017). The Impact of Health Expenditures on Economic Growth of Cameroon: A Literature Review Perspective. Available at SSRN: https://ssrn.com/abstract=3036510 or http://dx.doi.org/10.2139/ssrn.3036510
  • OECD (2014). OECD Reviews of Health Care Quality: Turkey Raising Standards, 25 November 2014. http://www.oecd.org/els/health-systems/Review-of-Health-Care-Quality-Turkey_ExecutiveSummary.pdf (Cited 07.01.2020).
  • OECD (2019). Health at a Glance 2019, OECD Indicators. https://www.oecd.org/health/health-systems/health-at-a-glance-19991312.htm (Cited 25.12.2019).
  • OECD Statistics (2019). Health Expenditure and Finance Statistics. https://stats.oecd.org/Index.aspx?DataSetCode=SHA (Cited 14.11.2020).
  • OECD (2020). Beyond Containment: Health Systems Responses to COVID-19 in the OECD Countries, Updated 20 March, OECD. https://read.oecd-ilibrary.org/view/?ref=119_119689-ud5comtf84&title=Beyond_Containment:Health_systems_responses_to_COVID-19_in_the_OECD (cited 25.03.2020).
  • Ozlale, U. (2007). “Sağlık”lı Ekonomik büyüme, Makro Bakış Dergisi, Kasım Sayısı.
  • Raghupathi, V. & Raghupathi, W. (2020). Healthcare Expenditure and Economic Performance: Insights From the United States Data, Frontiers in Public Health, https://doi.org/10.3389/fpubh.2020.00156. Republic of Turkey Ministry of Health (2016). Health Statistics Yearbook 2016. http://ohsad.org/wp-content/uploads/2017/12/13160.pdf (Cited 25.12.2019).
  • Sachs, J.D. (2001). Macroeconomics and Health: Investing in Health for Economic Development, Report of the Commission on Macroeconomics and Health, WHO Commission on Macroeconomics and Health. World Health Organization. https://apps.who.int/iris/handle/10665/42463 (Cited 20.01.2019).
  • Sahin, D. & Durmus, S. (2019). Analysis of The Effect of Economic Growth And Environmetal Pollution On Health Expenditures in OECD Countries, Finance, Politics and Economic Reviews, 647, 185-201.
  • Sancar, S. & Polat, M. A. (2021). The Relationship between CO2 Emissions, Economic Growth, and Health Expenditures: An Empirical Application for Turkey and Selected Countries, MANAS Journal of Social Studies, 10 (1), 236-252.
  • Turkish Statistical Institute (2020). Statistics Data Portal. https://www.tuik.gov.tr/Home/Index (Cited 14.11.2020).
  • Wang, F. (2015). More Health Expenditure, Better Economic Performance? Empirical Evidence From OECD Countries, Inquiry, 52 (January-December 2015), 1-5.
  • World Bank (2020). Data Catalog. https://datacatalog.worldbank.org/ (Cited 03.02.2020).
  • World Health Organization (2012). Turkey Health System Performance Assessment 2011, May 2012. http://www.euro.who.int/__data/assets/pdf_file/0004/165109/e95429.pdf (Cited 15.11.2019)
  • World Health Organization (2019). Global Spending on Health: A World in Transition, December 2019. https://www.who.int/publications/i/item/WHO-HIS-HGF-HFWorkingPaper-19.4 (Cited 03.04.2021).
  • World Health Organization (2020). Global Spending on Health: Weathering the Storm, December 2020. https://www.who.int/publications/i/item/9789240017788 (Cited 03.04.2021).
  • World Bank Health and Nutrition Statistics (2020). Databank. https://databank.worldbank.org/source/health-nutrition-and-population-statistics (Cited 14.11.2020).
  • Yilanci, V., & Aydin, M. (2018). Türkiye’de Kadın Okullaşmasının Ekonomik Büyüme Üzerindeki Etkisi: Rals-Eg Eşbütünleşme Testi Yaklaşımı. Uluslararası İktisadi ve İdari İncelemeler Dergisi, 101-112.
There are 33 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Esra N. Kılcı 0000-0002-2239-4560

Publication Date June 29, 2022
Submission Date August 13, 2021
Published in Issue Year 2022 Issue: 36

Cite

APA Kılcı, E. N. (2022). Can We Increase Health Expenditure Per Capita Through Higher Economic Growth? Empirical Evidence from Turkey. EKOIST Journal of Econometrics and Statistics(36), 137-152. https://doi.org/10.26650/ekoist.2022.36.982652