The European Journal of Health Economics

, Volume 18, Issue 5, pp 567–574 | Cite as

The dynamic relationship between health expenditure and economic growth: is the health-led growth hypothesis valid for Turkey?

Original Paper

Abstract

The well-known health-led growth hypothesis claims a positive correlation between health expenditure and economic growth. The aim of this paper is to empirically investigate the health-led growth hypothesis for the Turkish economy. The bound test approach, autoregressive-distributed lag approach (ARDL) and Kalman filter modeling are employed for the 1975–2013 period to examine the co-integration relationship between economic growth and health expenditure. The ARDL model is employed in order to investigate the long-term and short-term static relationship between health expenditure and economic growth. The results show that a 1 % increase in per-capita health expenditure will lead to a 0.434 % increase in per-capita gross domestic product. These findings are also supported by the Kalman filter model’s results. Our findings show that the health-led growth hypothesis is supported for Turkey.

Keywords

Health-led growth hypothesis Bound test ARDL model Kalman filter method Turkey 

JEL Classification

C32 I10 O12 O13 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2016

Authors and Affiliations

  • Emre Atilgan
    • 1
  • Dilek Kilic
    • 2
  • Hasan Murat Ertugrul
    • 3
  1. 1.Department of Health ManagementTrakya UniversityEdirneTurkey
  2. 2.Department of EconomicsHacettepe UniversityAnkaraTurkey
  3. 3.Republic of Turkey Prime Ministry Undersecretariat of TreasuryAnkaraTurkey

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