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The Short and Long Run Causality Relationship Between Public Health Spending and Economic Growth: Evidence from Tunisia and Morocco

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  • Adel Ifa and Imène Guetat

    (Paris-Nord University)

Abstract

This study aims to analyze the short run and long run relationship link between economic growth and public health spending in Tunisia and Morocco cover the 1980-2017 periods. The basic analysis process involves four steps: stationarity test, Bound tests for Cointegration, ARDL approach inspired by Pesaran et al. (2001), and VECM method. The results confirm the existence of cointegration between variables. In long run, public health spending affects positively the Tunisian and Moroccan economic growth, but more intensively in Tunisia. The short run causal relationships exist between variables and the result of Granger causality indicate the existence of positive bidirectional causal relationships between economic growth and public health spending in both countries. The results warrant for the attention of Tunisian and Moroccan governments to investigate more in health sector as a factor of economic growth. In addition, these two governments should give the attention of their monetary policy and corruption

Suggested Citation

  • 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.
    • Handle: RePEc:jed:journl:v:44:y:2019:i:3:p:19-39
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    2. 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.
    3. Cong Tam Trinh & Minh-Tri Ha & Nhut Quang Ho & Tho Alang, 2023. "National culture, public health spending and life insurance consumption: an international comparison," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.

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    More about this item

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

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