ECONOMETRIC ANALYSIS OF THE IMPACT OF PUBLIC HEALTHCARE EXPENDITURES ON SUSTAINABLE ECONOMIC GROWTH
DOI:
https://doi.org/10.60078/3060-4842-2025-vol2-iss3-pp959-968Abstract
This study assesses the relationship between healthcare expenditures and sustainable economic growth using econometric analysis. The analysis is conducted using data from 44 countries and applies econometric models (OLS, Fixed Effects, IV (2SLS), GMM). According to the results of the Fixed Effects model, healthcare expenditures have a positive effect on economic growth. However, the results obtained using the IV model are close to those obtained by the OLS method, while the GMM model, which accounts for endogeneity, shows that healthcare expenditures may slow down economic growth. At the same time, the Sargan-Hansen test results indicate that the instrumental variables used are not fully valid. It is concluded that countries may stimulate economic growth by optimizing the volume and efficiency of healthcare expenditures.
Keywords:
healthcare expenditures sustainable economic growth econometric modelReferences
ANOWOR, O.F., ICHOKU, H.E. and ONODUGO, V.A. (2020) Nexus between Healthcare Financing and Output Per Capita: Analysis of Countries in ECOWAS Sub-Region. Cogent Economics & Finance, 01, vol. 8, no. 1 Publicly Available Content Database. DOI https://doi.org/10.1080/23322039.2020.1832729.
Atilgan, Emre et al. (2024) “Health-led growth hypothesis and health financing systems: an econometric synthesis for OECD countries.” Frontiers in public health vol. 12 1437304. 24 Jul. doi:10.3389/fpubh.2024.1437304
Chaabouni, S., et al. (2022). The relationship between health expenditure indicators and economic growth: A panel data analysis. Frontiers in Public Health, 10, 1050550.
GÜNAY, E. and ATILGAN, D. (2020) HEALTH EXPENDITURES AND ECONOMIC GROWTH FOR SELECTED OECD COUNTRIES: NEW GENERATION PANEL COINTEGRATION ANALYSIS. Business & Management Studies: An International Journal, vol. 8, no. 3. pp. 3640-3654 Publicly Available Content Database. ISSN 21482586. DOI https://doi.org/10.15295/bmij.v8i3.1546.
Hartwig, J. (2008). Health care expenditure and economic growth: A cross-sectional and panel data analysis for OECD countries. Journal of International Development, 20(3), 296-312.
Liton, M. R. I. (2024). LINKAGES AMONG CARBON DIOXIDE (CO2) EMISSION, HEALTH SPENDING AND ECONOMIC GROWTH: A STUDY SAARC MEMBER COUNTRIES. [ВЕЗЕ ИЗМЕЂУ ЕМИСИЈЕ УГЉЕН-ДИОКСИДА, ЗДРАВСТВЕНЕ ПОТРОШЊЕ И ЕКОНОМСКОГ РАСТА -СТУДИЈА ЗЕМАЉА ЧЛАНИЦА ЈУЖНОАЗИЈСКЕ АСОЦИЈАЦИЈЕ ЗА РЕГИОНАЛНУ САРАДЊУ (SAARC)] Zbornik Radova Ekonomskog Fakulteta u Istočnom Sarajevu, (28), 23-38. doi:https://doi.org/10.7251/ZREFIS2428023L
MANENGE, R. (2025) Health Expenditures and Economic Growth in Zimbabwe. International Journal of Economics and Financial Issues, vol. 15, no. 1. pp. 256-264 Coronavirus Research Database; Publicly Available Content Database. DOI https://doi.org/10.32479/ijefi.17397.
Narayan, P. K., et al. (2010). Health expenditures and economic growth: New evidence from panel data. International Journal of Applied Econometrics and Quantitative Studies, 7(2), 5-22.
Nghiem, S., Connelly, L. (2017). Convergence and determinants of health expenditures in OECD countries. Health Econ Rev 7, 29 https://doi.org/10.1186/s13561-017-0164-4
Ozyilmaz, Ayfer et al. (2022) “The Relationship between Health Expenditures and Economic Growth in EU Countries: Empirical Evidence Using Panel Fourier Toda-Yamamoto Causality Test and Regression Models.” International journal of environmental research and public health vol. 19,22 15091. 16 Nov, doi:10.3390/ijerph192215091
Piabuo, S.M., Tieguhong, J.C. (2017) Health expenditure and economic growth - a review of the literature and an analysis between the economic community for central African states (CEMAC) and selected African countries. Health Econ Rev 7, 23. https://doi.org/10.1186/s13561-017-0159-1
Piabuo, S.M., Tieguhong, J.C. (2017). Health expenditure and economic growth - a review of the literature and an analysis between the economic community for central African states (CEMAC) and selected African countries. Health Econ Rev 7, 23 https://doi.org/10.1186/s13561-017-0159-1
Sassi, F., et al. (2016). More health expenditure, better economic performance? Empirical evidence from OECD countries. Applied Economics, 48(1), 1-14.
VYSOCHYNA, A., et al. (2023) Impact of Coronavirus Disease COVID-19 on the Relationship between Healthcare Expenditures and Sustainable Economic Growth. International Journal of Environmental Research and Public Health, vol. 20, no. 4. pp. 3049 Coronavirus Research Database; Publicly Available Content Database. ISSN 1661-7827. DOI https://doi.org/10.3390/ijerph20043049.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
