The Relationship between Per Capita Health Expenditure and Per Capita GDP (A Case Study of Low and Middle Income Countries)
Subject Areas : Labor and Demographic Economicsdavood behboodi 1 , faranak bastan 2 , majid feshari 3
1 - دانشیار دانشگاه تبریز
2 - کارشناس ارشد اقتصاد
3 - دانشجوی دکتری دانشگاه تبریز
Keywords: Per Capita Health Expenditures, Per Capita GDP, Toda and Yamamoto causality, Hsiao's Granger Causality,
Abstract :
The main objective of this paper is to investigate the relationship between per capita health expenditure and per capita GDP for lower and middle income countries during 2003-2007. For this purpose, we used the Hsiao's-Granger and Toda & Yamamoto(TY) causality tests for investigating short-run relation between two variables. The results of the model estimation reveal that there is a unilateral causality from the GDP per capita to per capita health expenditure. Due to the results of this paper, the main implication policy of this study is that the policymakers and economic planners should adopt the suitable policies to improve economic growth and GDP per capita. Because, the increase of GDP per capita can be enhance the consumption expenditures and especially, health expenditures per capita.
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