Theoretical and Applied Economics
No. 1 / 2022 (630), Spring
Empirical evidence to the nonmonotonic relationship between public health expenditure and economic growth
Eberhard Karls University of Tübingen, Germany
Abstract. Government spending does not have a monotonic relationship with economic growth. The growth impacts of government spending differ owning to several factors. This paper has examined the relationship empirically. The empirical analysis has been carried out separately for developed and developing economies. The analysis has been performed with panel datasets of 36 developed and 88 developing countries over the period of 2000-2018. Fixed Effects (FE) model and Panel Error Correction Model (PECM) were used for estimation. The long-run cointegrating relationship was estimated using a PDOLS estimator. The FE estimation showed negative impacts of public expenditure on growth in developed economies whereas no causal relationship for the case of less developed economies. In the dynamic estimation analysis, it was found that public health expenditure negatively affected growth in developed economies and positively in the less developed economies, in the long run. In the short-run, no causal relationships could be established for both the cases.
Contents
Economic resilience in Central and Eastern European countries
Romania's economy on the threshold of recession
Testing the Marshall-Lerner condition for Romania
Empirical evidence to the nonmonotonic relationship between public health expenditure and economic growth
Institutional quality and public healthcare
Consequences of the Covid-19 epidemic on hygiene purchase behavior
Banking management in the prism liquidity – profitability interrelation
Long-term price and income elasticity of residential natural gas demand in Turkey
The impact of foreign direct investment on the economy of Bangladesh: A time-series analysis
Does gravity work in the context of India and ASEAN bilateral trade? An application of the FGLS method
The dynamics of India – ASEAN trade with special reference to manufactured exports and their technological composition
How does Israel share Palestinians their international aid
Attention economy and higher-order beliefs in voters’ online attention searches
Volatility and asymmetric analysis of Indian indices during Covid-19 pandemic period