scholarly journals The effect of health expenditures on life expectancy; A case of OECD countries

2020 ◽  
Vol 6 (2) ◽  
Author(s):  
ZEYNEP TUGCE GOK GURSOY ◽  
HULYA SEN
Author(s):  
Ahmet Gokce Akpolat ◽  
Nurullah Altintas

Health is assumed to influence the economy through many channels. It reduces infant mortality and increase life expectancy and adult survival rates. Health level and life expectancy affects long-term savings decisions of individuals. This study examines the relationship between health indicators and economic growth in 19 OECD countries during the period 1970-2009 within a panel data analysis. The authors employ three different measures of health. Results show that an increase in health expenditures and a decrease in infant mortality positively affect GDP in compatible with the theoretical assumptions. However, life expectancy is detected to affect GDP negatively in contrast with the theoretical expectations. In conclusion, health expenditures and services concluded to influence GDP by improving human capital. Furthermore, the authors make suggestions about how economies can remove the burden of aging population.


2020 ◽  
Vol 12 (2) ◽  
pp. 87-102
Author(s):  
Panan Danladi Gwaison ◽  
Livinus Nkuri Maimako

Health is a very important aspect of an individual’s wellbeing, and since individuals make a nation, therefore, healthcare expenditure could be regarded as one of the necessary conditions to achieving a sustainable long-term economic development. This study examined the effects of government health expenditures on the performance of health Sector in Nigeria. The study employed expo facto research design. The annual time series data from 1979 to 2017 was used in this study from Statistical Bulletin of the Central Bank of Nigeria and World Development Indicators, 2018. The pre estimation test like the descriptive statistics, Augmented Dickey-Fuller (ADF) unit root test Johensen cointegration test and Error correction model test. The OLS estimation technique was used to determine the coefficient of the variables and test the four hypothesis. The results indicated that government total health expenditures, capital health expenditure and recurrent health expenditures are positively related to the performance of health sector proxy by life expectancy rate and statistically insignificant. However capital health expenditure was statistically significant to life expectancy. The study recommends that more emphasis should be placed on the capital expenditures on health as this will facilitate rapid development of the sector and adequate Machinery should be put in place by all sectors of government to arrest corruption and penalize those who divert and embezzle public health fund among other recommendations were made.


2012 ◽  
Vol 23 (4) ◽  
pp. 563-568 ◽  
Author(s):  
Y. Liu ◽  
A. Arai ◽  
K. Kanda ◽  
R. B. Lee ◽  
J. Glasser ◽  
...  

Author(s):  
Seda Yıldırım ◽  
Durmus Cagri Yildirim ◽  
Hande Calıskan

PurposeThis study aims to explain the role of health on economic growth for OECD countries in the context of sustainable development. Accordingly, the study investigates the relationship between health and economic growth in OECD countries.Design/methodology/approachThis study employed cluster analysis and econometric methods. By cluster analysis, 12 OECD countries (France, Germany, Finland, Slovenia, Belgium, Portugal, Estonia, Czech Republic, Hungary, South Korea, Poland and Slovakia) were classified into two clusters as high and low health status through health indicators. For panel threshold analysis, the data included growth rates, life expectancy at birth, export rates, population data, fixed capital investments, inflation and foreign direct investment for the period of 1999–2016.FindingsThe study determined two main clusters as countries with high health status (level) and low health status (level), but there was no threshold effect in clusters. It was concluded that an increase in the life expectancy at birth of countries with higher health status had no significant impact on economic growth. However, the increase in the life expectancy at birth of countries with lower health status influenced economic growth positively.Research limitations/implicationsThis study used data that including period of 1999–2016 for OECD countries. In addition, the study used cluster analysis to determine health status of countries, and then panel threshold analysis was preferred to explain significant relations.Originality/valueThis study showed that the role of health on economic growth can change toward country groups as higher and lower health status. It was proved that higher life expectancy can influence economic growth positively in countries with worse or low health status. In this context, developing countries, which try to achieve sustainable development, should improve their health status to achieve economic and social development at the same time.


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