scholarly journals Nonlinear Granger Causality between Health Care Expenditure and Economic Growth in the OECD and Major Developing Countries

2018 ◽  
Vol 15 (9) ◽  
pp. 1953 ◽  
Author(s):  
Liping Ye ◽  
Xinping Zhang
Keyword(s):  
Economic Growth ◽  
Health Care ◽  
Developing Countries ◽  
Granger Causality ◽  
Health Care Expenditure ◽  
Life Quality ◽  
Health Spending ◽  
Causality Tests ◽  
Nonlinear Features ◽  
Linear And Nonlinear

Differing from previous studies ignoring the nonlinear features, this study employs both the linear and nonlinear Granger causality tests to examine the complex causal relationship between health care expenditure and economic growth among 15 Organisation for Economic Co-operation and Development (OECD) and 5 major developing countries. Some interesting findings can be obtained as follows: (1) For Australia, Austria, and UK, linear and nonlinear Granger causality does not exist between them. A unidirectional linear or nonlinear causality running from economic growth to health care expenditure can be found for Ireland, Korea, Portugal, and India. For these seven countries, health or fiscal policy related to health spending will not have an impact on economic growth; (2) For Belgium, Norway, and Mexico, only a unidirectional linear causality runs from health care expenditure to economic growth, while bidirectional linear causality can be found for Canada, Finland, Iceland, New Zealand, Spain, Brazil, and South Africa. Especially for the US, China, and Japan, a unidirectional nonlinear causality exists from health spending to economic growth. To improve the quality of national health, life quality and happiness, these 13 countries should actively look to optimise policy related to health care expenditure, such as by enhancing the efficiency of health costs to promote sustainable economic development.

scholarly journals A Comprehensive Review of The Impact of Health Care Expenditure and Health Outcomes on Economic Growth

2020 ◽  
pp. 585-597
Author(s):  
Ampon-Wireko Sabina ◽  
Zhou Lulin ◽  
Asante Antwi Henry ◽  
Wireko Brobby Ebenezer
Keyword(s):  
Economic Growth ◽  
Health Care ◽  
Health Outcome ◽  
Health Status ◽  
Health Expenditure ◽  
English Language ◽  
Health Care Expenditure ◽  
Health Spending ◽  
Health Care Expenditures ◽  
The Impact

<strong>Objectives:</strong> The unceasing increase of health care expenditures is a very crucial decision to take by most governments and has drawn the attention of scholars and policy makers to research and rethink about the effects on health status and economic growth. However, from open and available literature, it can be established that not much studies have considered this linkage. The study aims to bring to light and review the current state-of-art of all previous studies regarding the interplay between health spending, health outcome and economic growth within both high and middle-income countries.</p> <p><strong>Methods</strong><strong>: </strong>An electronic exploration was carried out in the academic databases below: Emerald, Google Scholar, PubMed, Science Direct, Springer, web of Science additionally JSTOR in English language between the period 1990 to 2018. </p> <p><strong>Results:</strong>  The results revealed mixed conclusion between health expenditure and population health. The findings of healthcare expenditure and economic growth shows a positive relationship mostly in the developed nations The study again found that better health status improves economic growth.</p> <p><strong>Conclusion:</strong> The outcome of the study appeared to foster more confusion as findings regarding association between health expenditure and health outcome have not been consistent. The research findings revealed   that there is still much to be done for scholars to build a strong theoretical base, on these connections to for an effective decision-making.

scholarly journals Financial innovation and economic growth: evidence from Zimbabwe

2016 ◽  
Vol 13 (2) ◽  
pp. 65-75 ◽  
Author(s):  
Alex Bara ◽  
Calvin Mudzingiri
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Time Series Data ◽  
Financial Time Series ◽  
Financial Innovation ◽  
Dark Side ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Causality Tests

The role of financial innovation on economic growth in developing countries has not been actively pursued. Stemming from the finance-growth nexus, literature suggests that financial innovation has a relationship to growth, which could be either positive or negative. Implicitly, financial innovation has a good and a dark side that affects growth. This study establishes the causal relationship between financial innovation and economic growth in Zimbabwe empirically. Using the Autoregressive Distributed Lag (ARDL) bounds tests and Granger causality tests on financial time series data of Zimbabwe for the period 1980-2013, the study finds that financial innovation has a relationship to economic growth that varies depending on the variable used to measure financial innovation. A long-run, growth-driven financial innovationis confirmed, with causality running from economic growth to financial innovation. Bi-directional causality also exists after conditionally netting-off financial development. Policies that enhance economic growth inter-twined with financial innovation are essential, if developing countries, such as Zimbabwe, aim to maximize economic development

scholarly journals Linear and Nonlinear Causal Relationships Between International Reserves and Economic Growth: Evidence from India

2020 ◽  
Vol 16 (1) ◽  
pp. 54-59
Author(s):  
Mohammad Kashif ◽  
Satish Kumar Singh ◽  
S. Thiyagarajan ◽  
Abhishek Maheshwari
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Unit Root Test ◽  
Granger Causality Test ◽  
International Reserves ◽  
Infrastructure Development ◽  
Causal Relationships ◽  
Causality Test ◽  
Linear And Nonlinear ◽  
Bds Test

This study investigates linear and nonlinear causal relationships between accumulated international reserves (IR) and economic growth (Econ) in the case of India. The present study is carried out using quarterly data ranging from the period of the first quarter of 1985 to the fourth quarter of 2014. The study used econometric tools such as the augmented Dickey–Fuller (ADF) unit root test, the linear Granger causality test, Johansen’s cointegration test, the Brock, Dechert and Scheinkman (BDS) test and the nonlinear Granger causality test developed by Hiemstra and Jones. The study establishes that there exists a bidirectional linear causality. The Hiemstra and Jones test reveals a bidirectional nonlinear causal relationship between the variables. In light of these results, the study suggests that reserves accumulation can be implemented in India provided that excess of reserves are invested in alternative sources such as economic infrastructure projects and regional infrastructure development.

A Granger Causality Analysis between the GDP and CO2 Emissions of Major Emitters and Implications for International Climate Governance

2018 ◽  
Vol 06 (01) ◽  
pp. 1850004 ◽  
Author(s):  
Mou WANG
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Granger Causality ◽  
Carbon Emissions ◽  
Granger Causality Test ◽  
Developed Countries ◽  
Causality Test ◽  
Climate Governance ◽  
International Climate ◽  
Integration Analysis

This paper empirically examines the relationship between carbon emissions and economic growth by applying the co-integration analysis and Granger causality test to the time series data of carbon emissions and gross domestic product (GDP) of the world’s top 20 emitters from 1990 to 2015. Co-integration analysis shows that there is a long-term equilibrium relationship between carbon emissions and economic growth in most countries; Granger causality test verifies a one-way causal link between carbon emissions and economic growth in most major emitters. In developed countries, economic growth is the Granger cause of carbon emissions, while the opposite is true in developing countries. The results reflect different characteristics regarding carbon emission reduction in developed and developing countries as they are at different developing stages. Carbon emission reduction exerts much greater adverse effects on the economic growth of developing countries than it does on that of developed countries. Based on the results of the Granger causal analysis, it is found that the requirements for developing countries to substantially reduce emissions are not in line with the characteristics in their current developing stage and therefore may pose obstructions. Developed countries should take the lead in carrying out emission reductions due to their accountability for historical emissions as well as their development stages and capabilities. In addition, they should aid developing countries in their efforts for transforming and upgrading development and reducing dependence of economic growth on carbon emissions. International climate governance should take into account the needs and characteristics of different countries for future development, and build a mechanism for international cooperation to achieve synergy between social economic development and global climate governance.

scholarly journals The Contribution of Public Health Investments to the Economic Growth of Cameroon

2017 ◽  
Vol 4 (1) ◽  
pp. 12-21 ◽  
Author(s):  
Ismaila Amadu ◽  
Ngoe Fritz Eseokwea ◽  
Marcel Ngambi
Keyword(s):  
Public Health ◽  
Economic Growth ◽  
Health Care ◽  
Health Care Services ◽  
Health Spending ◽  
World Health ◽  
Quality Health Care ◽  
Health Investments ◽  
The World ◽  
The Government

The goal of this paper is to determine the contribution of public health investments to the economic growth of Cameroon. The study used the human capital model of Lucas (1988) within the framework of endogenous growth theories. The Vector Error Correction Model (VECM) was employed in the estimations procedure using the World Development Indicators (WDI, 2013) data from the World Bank over the period spanning from 1988 to 2013.The findings show that government health expenditures contribute to economic growth only in the long run. From our results, we recommend that: first, the government should increase health spending to 10 or 15 percent of its GDP as initially suggested by the African Union and the World Health Organization respectively; second, government should enhance the provision of health care services by the private sector by putting in place incitation measures; third, competitive awards should be granted to those health units that render quality health care services.Int. J. Soc. Sc. Manage. Vol. 4, Issue-1: 12-21

scholarly journals Trade Facilition and Economic Growth in Developing Countries: Using A Static and Dynamic Framework

2017 ◽  
Vol 7 (2) ◽  
pp. 270
Author(s):  
Sheereen Fauzel
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Granger Causality ◽  
Growth Modeling ◽  
Private Investment ◽  
Granger Causality Test ◽  
Causality Test ◽  
Trade Facilitation ◽  
Dynamic Framework ◽  
Gmm Estimates

Analysing the literature, it is found that empirical evidences on the link between trade facilitation and economic growth for developing countries is very scarce. The present study investigated whether trade facilitation has contributed to the economic growth of a sample of 23 developing countries over the period 2007-2014. Results from the analysis highlight the importance of trade facilitation as a crucial determinant of development. Moreover, even trade levels have demonstrated to have an important role to play in boosting growth levels. Private investment is also seen to be an important driver of growth and the importance of education, are also acknowledged by the results. The GMM estimates confirmed these results and further indicated the presence of dynamism in growth modeling. Moreover, the granger causality test shows that there is a uni directional causality flowing from trade facilitation to economic growth.

scholarly journals The Trivariate Causality among Education, Health, and Economic Growth in Zimbabwe

2020 ◽  
Vol 12 (4) ◽  
pp. 1357
Author(s):  
Michael Takudzwa Pasara ◽  
Tapiwa Kelvin Mutambirwa ◽  
Nolutho Diko
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Transmission Mechanism ◽  
Feedback Effect ◽  
Health Policies ◽  
Var Model ◽  
Vector Autoregressive ◽  
Education And Health ◽  
Causality Tests ◽  
Granger Causality Tests

This study investigated the causality among education, health, and economic growth in Zimbabwe. Causality effects are a thinly explored area in literature, with most studies focusing on bidirectional relationships. Granger causality tests were employed in a Vector autoregressive (VAR) model. Results showed that education Granger causes health improvements, with health improvements in turn fairly associating to Granger cause economic growth in Zimbabwe. Thus, the effect of education on economic growth is not direct, but works through improved health, pointing to the conclusion that health is a transmission mechanism through which education drives economic growth. No feedback effect was established from health to education and from economic growth to education and health. Thus, results suggest the need for a holistic policy approach which integrates education and health policies in a bid to drive economic growth, since education has no effect on economic growth in its own domain, but through health.

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