Makiyan, Seyed Nezamuddin; Moradi, Mahvash; Lotfi, Ezatollah
March 2014
Journal of International Relations / Medzinarodne Vztahy;2014, Vol. 12 Issue 1, p73
Academic Journal
A strong and positive correlation between health care expenditure and GDP has been the consistent finding of research. Based on this concept about the role of health in the economy, this paper aims to investigate the relationship between economic growth and health care expenditure. We use panel data analysis of 23 selected Asian countries over the period of 1996-2009. We develop a framework by employing a series of respective tests and estimate the model using GLS approach. The results confirm presence of a positive and significant relationship between economic growth and health care expenditure. The Granger causality test also indicates the existence of bidirectional causality between health care expenditure and economic growth in the short-run and unidirectional causality from health care expenditure to GDP in the long-run.


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