ArticleInternational journal of health economics and management2020
Health expenditure and gross domestic product: causality analysis by income level.
Article in International journal of health economics and management, 2020. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 24 papers, 1 of them a synthesis that pooled it.
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Who cites it
24 citing papers in PubMed, 1 synthesis or guideline pooled it.
- Prevalence of Sleep Problems Among Chinese Medical Students: A Systematic Review and Meta-Analysis.Frontiers in psychiatry · 2022Pooled it
- Change in healthcare costs in Europe 2018-2023 (data report).Frontiers in public health · 2026Article
- The prevalence of low bone mineral density in women aged 55 years or older and the association with socioeconomic factors across the Globe.BMC public health · 2025Article
- Identifying Influential Variables on Health Expenditure of the Organisation for Economic Co-Operation and Development (OECD) Countries.Iranian journal of public health · 2024Article
- Is economic growth enough to propel rehabilitation expenditures? An empirical analysis of country panel data and policy implications.BMC public health · 2024Article
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- Economic impact of government health expenditure: An application of the computable general equilibrium model to the Iran.Journal of education and health promotion · 2024Article
- Determinants of government spending on primary healthcare: a global data analysis.BMJ global health · 2023Article
- Spending to grow or growing to spend? Relationship between public health expenditure and income of Indian states.SSM - population health · 2023Article
- Resiliency of healthcare expenditure to income shock: Evidence from dynamic heterogeneous panels.Frontiers in public health · 2023Article
- The Impact of Medical and Health Fiscal Expenditures on Pharmaceutical Industry Stock Index in China.International journal of environmental research and public health · 2022Article
- An Empirical Analysis of Income Elasticity of Out-of-Pocket Healthcare Expenditure in Mauritius.Healthcare (Basel, Switzerland) · 2022Article
- Health expenditures, environmental quality, and economic development: State-of-the-art review and findings in the context of COP26.Frontiers in public health · 2022Article
- Economic Boom and Busts Lead to Human Capital Changes? Evidence From Health Expenditure Changes in Emerging Economies.Frontiers in public health · 2022Article
- Spatial and Temporal Differences in the Health Expenditure Efficiency of China: Reflections Based on the Background of the COVID-19 Pandemic.Frontiers in public health · 2022Article
- Growth and welfare in mixed health system financing with physician dual practice in a developing economy: a case of Indonesia.International journal of health economics and management · 2021Article
- The Effect of Business Cycles on Health Expenditure: A Story of Income Inequality in China.Frontiers in public health · 2021Article
- Do Health Expenditures Converge Among ASEAN Countries?Frontiers in public health · 2021Article
Corrections and comments
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Authors and funding
3 authors.
Funding
No grant is acknowledged in the PubMed record.
Abstract
The empirical findings on the relationship between gross domestic product (GDP) and health expenditure are diverse. The influence of income levels on this causal relationship is unclear. This study examines if the direction of causality and income elasticity of health expenditure varies with income level. It uses the 1995-2014 panel data of 161 countries divided into four income groups. Unit root, cointegration and causality tests were employed to examine the relationship between GDP and health expenditure. Impulse-response functions and forecast-error variance decomposition tests were conducted to measure the responsiveness of health expenditure to changes in GDP. Finally, the common correlated effects mean group method was used to examine the income elasticity of health expenditure. Findings show that no long-term cointegration exists, and the growth in health expenditure and GDP across income levels has a different causal relationship when cross-sectional dependence in the panel is accounted for. About 43% of the variation in global health expenditure growth can be explained by economic growth. Income shocks affect health expenditure of high-income countries more than lower-income countries. Lastly, the income elasticity of health expenditure is less than one for all income levels. Therefore, healthcare is a necessity. In comparison with markets, governments have greater obligation to provide essential health care services. Such results have noticeable policy implications, especially for low-income countries where GDP growth does not cause increased health expenditure.
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Registered trials
Read under generation 80e0d062 · epoch 390. Bibliography from PubMed, PubMed Central and OpenAlex; grants from NIH RePORTER; trial links from ClinicalTrials.gov; estimates, votes and beliefs from the OpenQuestion graph.