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Government Health Expenditures and Economic Growth: A Feder Ram Approach for the Case of Turkey

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  • Serdar Kurt

    (Department of Econometrics, Biga Faculty of Economics & Administrative Sciences, Canakkale Onsekiz Mart University, anakkale, Turkey.)

Abstract

This paper aims to test the direct and indirect (external) effects of health expenditures on economic growth using the Feder Ram model. It uses aggregate and manufacturing industrial production as total output, total government health expenditures, general government cure and pharmaceutical products health expenditures, general government medicine and health expenditures series belonging to the economy of Turkey between the 2006:M01- 2013:M10 period using seasonally adjusted and real monthly data. The results obtained from this study have shown that in general, the direct impact of government health expenditures on economic growth in Turkey is positive and significant and its indirect impact is negative and significant. Moreover, when the coefficient calculated for efficiency is considered, it can be argued that while there are not very significant differences between the government health sector and other sectors, the government health sector is slightly more efficient. In this case it can clearly be seen that there is a requirement to improve and further develop the health sector in Turkey.

Suggested Citation

  • Serdar Kurt, 2015. "Government Health Expenditures and Economic Growth: A Feder Ram Approach for the Case of Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 5(2), pages 441-447.
    • Handle: RePEc:eco:journ1:2015-02-14
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    Cited by:

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    2. Olga Anatolyevna Demidova & Elena Vladimirovna Kayasheva & Artem Vladimirovich Demyanenko, 2021. "Government Spending on Healthcare and Economic Growth in Russia: A Regional Aspect," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 1, pages 97-122.
    3. Wei Jiang & Yadong Wang, 2023. "Asymmetric Effects of Human Health Capital on Economic Growth in China: An Empirical Investigation Based on the NARDL Model," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    4. Yuan, Mingqing, 2023. "The nexus between economic growth, healthcare expenditure, and CO2 emissions in Asia-Pacific countries: Evidence from a PVAR approach," MPRA Paper 119994, University Library of Munich, Germany.
    5. Rimsha Javed, 2021. "Nexus Between Economic Growth, Health, and Education in Pakistan: An ARDL Bound Testing Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 11(6), pages 56-65.
    6. Minhas Akbar & Ammar Hussain & Ahsan Akbar & Irfan Ullah, 2021. "The dynamic association between healthcare spending, CO2 emissions, and human development index in OECD countries: evidence from panel VAR model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(7), pages 10470-10489, July.
    7. Mustafa Ozer & Veysel Inal & Mustafa Kirca, 0. "The Relationship Between the Health Services Price Index and The Real Effective Exchange Rate Index in Turkey: A Frequency Domain Causality Analysis," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 0(36), pages 21-41, June.
    8. Songul Cinaroglu, 2017. "A Fresh Look at Out-of-Pocket Health Expenditures after More than a Decade Health Reform Experience in Turkey: A Data Mining Application," International Journal of Economics and Financial Issues, Econjournals, vol. 7(5), pages 33-40.
    9. Sinan Erdogan & Eyup Serdar Erdogan, 2023. "Analyzing the asymmetric effect of disaggregated health expenditures on economic growth," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(3), pages 2673-2686, June.
    10. Biswajit Maitra, 2018. "Investment in Physical, Human Capital, Economic Growth and Life Expectancy in Bangladesh," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 19(2), pages 251-269, September.
    11. Mohammad Mazharul Islam & Mohammad Nazrul Islam Mondal & Haitham Khoj, 2023. "Effects of Health Factors on GDP Growth: Empirical Evidence from Saudi Arabia," Sustainability, MDPI, vol. 15(11), pages 1-22, May.
    12. Channew Maneerat & Snober Fazal, 2020. "The Influence of Tax Revenue, Government Expenditures, Fiscal Decentralization, Carbon Emission and Exports on Economic Growth of Developing Countries," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 1(2), pages 1-12, June.
    13. Adel Ifa and Imène Guetat, 2019. "The Short and Long Run Causality Relationship Between Public Health Spending and Economic Growth: Evidence from Tunisia and Morocco," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 44(3), pages 19-39, September.

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    More about this item

    Keywords

    Direct and Indirect Effects; Government Expenditure; Health Expenditures; Economic Growth and Development; The Feder Ram Model;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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