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Impact of Coronavirus Disease COVID-19 on the Relationship between Healthcare Expenditures and Sustainable Economic Growth

Author

Listed:
  • Alina Vysochyna

    (Academic and Research Institute of Business, Economics and Management, Sumy State University, 40007 Sumy, Ukraine)

  • Tetiana Vasylieva

    (Academic and Research Institute of Business, Economics and Management, Sumy State University, 40007 Sumy, Ukraine
    Department of Applied Social Sciences, Silesian University of Technology, 44-100 Gliwice, Poland)

  • Oleksandr Dluhopolskyi

    (Faculty of Economics and Management, West Ukrainian National University, 46020 Ternopil, Ukraine
    Institute of Public Administration and Business, WSEI University, 20-209 Lublin, Poland)

  • Marcin Marczuk

    (Institute of Public Administration and Business, WSEI University, 20-209 Lublin, Poland)

  • Dymytrii Grytsyshen

    (Faculty of National Security, Law and International Relations, Zhytomyr Polytechnic State University, 10005 Zhytomyr, Ukraine)

  • Vitaliy Yunger

    (Faculty of National Security, Law and International Relations, Zhytomyr Polytechnic State University, 10005 Zhytomyr, Ukraine)

  • Agnieszka Sulimierska

    (Faculty of Management, Lublin University of Technology, 20-618 Lublin, Poland)

Abstract

The coronavirus disease (COVID-19) pandemic led to a catastrophic burden on the healthcare system and increased expenditures for the supporting medical infrastructure. It also had dramatic socioeconomic consequences. The purpose of this study is to identify the empirical patterns of healthcare expenditures’ influence on sustainable economic growth in the pandemic and pre-pandemic periods. Fulfilment of the research task involves the implementation of two empirical blocks: (1) development of a Sustainable Economic Growth Index based on public health, environmental, social, and economic indicators using principal component analysis, ranking, Fishburne approach, and additive convolution; (2) modelling the impact of different kinds of healthcare expenditures (current, capital, general government, private, out-of-pocket) on the index using panel data regression modelling (random-effects GLS regression). Regression results in the pre-pandemic period show that the growth of capital, government, and private healthcare expenditures positively influence sustainable economic growth. In 2020–2021, healthcare expenditures did not statistically significantly influence sustainable economic growth. Consequently, more stable conditions allowed capital healthcare expenditures to boost economic growth, while an excessive healthcare expenditure burden damaged economic stability during the COVID-19 pandemic. In the pre-pandemic period, public and private healthcare expenditures ensured sustainable economic growth; out-of-pocket healthcare expenditures dominantly contributed to the pandemic period.

Suggested Citation

  • Alina Vysochyna & Tetiana Vasylieva & Oleksandr Dluhopolskyi & Marcin Marczuk & Dymytrii Grytsyshen & Vitaliy Yunger & Agnieszka Sulimierska, 2023. "Impact of Coronavirus Disease COVID-19 on the Relationship between Healthcare Expenditures and Sustainable Economic Growth," IJERPH, MDPI, vol. 20(4), pages 1-18, February.
    • Handle: RePEc:gam:jijerp:v:20:y:2023:i:4:p:3049-:d:1063083
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