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Causal Nexus Between Public Health Expenditure and Economic Growth in Four Southern Indian States

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  • B Balaji

Abstract

The relationship between health expenditure and economic growth has drawn the attention of economists for many years both at the theoretical and empirical level. This paper investigates the possible dynamic relation between Healthcare Expenditure (HCE) and economic growth by applying Johansen and Juselius cointegration method and Granger causality methods by using state-level data from four Southern Indian states namely, Andhra Pradesh, Karnataka, Kerala and Tamil Nadu for the period 1960-2009. The evidence suggests that there is no long-run relation among the variables studied for all four states. However, in Andhra Pradesh, a unidirectional causality runs from economic growth to health expenditure.

Suggested Citation

  • B Balaji, 2011. "Causal Nexus Between Public Health Expenditure and Economic Growth in Four Southern Indian States," The IUP Journal of Public Finance, IUP Publications, vol. 0(3), pages 7-22, August.
    • Handle: RePEc:icf:icfjpf:v:09:y:2011:i:3:p:7-22
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    Cited by:

    1. Ronald Kumar & Madhukar Singh, 2014. "Role of health expenditure and ICT in a small island economy: a study of Fiji," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(4), pages 2295-2311, July.
    2. Sasa Obradovic & Nemanja Lojanica, 2018. "Is Health Care Necessity or Luxury Good? Panel Data Analysis on the Example of the SEEHN Countries," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 16(3 (Fall)), pages 195-214.
    3. Lin Li & Maoguo Wu & Zhenyu Wu, 2017. "The Impact of Public Health Expenditure on Economic Development ¨C Evidence from Prefecture-Level Panel Data of Shandong Province," Research in World Economy, Research in World Economy, Sciedu Press, vol. 8(2), pages 59-65, December.
    4. Deepti Ahuja & Deepak Pandit, 2020. "Public Expenditure and Economic Growth: Evidence from the Developing Countries," FIIB Business Review, , vol. 9(3), pages 228-236, September.
    5. Muhammad Usman & Zhiqiang Ma & Muhammad Wasif Zafar & Abdul Haseeb & Rana Umair Ashraf, 2019. "Are Air Pollution, Economic and Non-Economic Factors Associated with Per Capita Health Expenditures? Evidence from Emerging Economies," IJERPH, MDPI, vol. 16(11), pages 1-22, June.
    6. Ayfer Ozyilmaz & Yuksel Bayraktar & Esme Isik & Metin Toprak & Mehmet Bilal Er & Furkan Besel & Serdar Aydin & Mehmet Firat Olgun & Sandra Collins, 2022. "The Relationship between Health Expenditures and Economic Growth in EU Countries: Empirical Evidence Using Panel Fourier Toda–Yamamoto Causality Test and Regression Models," IJERPH, MDPI, vol. 19(22), pages 1-17, November.
    7. Yilmaz Bayar & Marius Dan Gavriletea & Mirela Oana Pintea & Ioana Cristina Sechel, 2021. "Impact of Environment, Life Expectancy and Real GDP per Capita on Health Expenditures: Evidence from the EU Member States," IJERPH, MDPI, vol. 18(24), pages 1-14, December.

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