Skip to main content
Disciplines
Automotive Business IT + Informatics Construction + Real Estate Electrical Engineering + Electronics Energy + Sustainability Insurance + Risk Finance + Banking Management + Leadership Marketing + Sales Mechanical Engineering + Materials
Events
DE
EN
Books
Journals
Topic Page
Marketing
Start single access now
Access for companies
EXTENDED SEARCH
Log in
Top
Quality & Quantity
Published in: Quality & Quantity 3/2016

18-04-2015

Can healthcare ever be less than a necessity in MENA countries? A semiparametric estimation of the relationship between healthcare expenditure and GDP

Author: Özlem Yorulmaz

Published in: Quality & Quantity | Issue 3/2016

Log in

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

This paper considers the relationship between healthcare expenditure (HCE) and gross domestic product using Baltagi and Li (Ann Econ Financ 3:103–116, 2002) semiparametric fixed effects regression estimator in a sample of 16 MENA countries over the 1995–2012 period. Findings indicate that income elasticity is not consistent but varies with income level and healthcare is a necessity for the non-oil rich countries (non-GCC) whereas it is an inferior good for the wealthiest countries in MENA; Qatar, United Arab Emirates (UAE) and Kuwait. Furthermore, it is found that the infant mortality rate per 1000 live births has a negative effect on per capita HCE in non-GCC countries and the proportion of the population age 65 and above is statistically significant in Bahrain, Oman and Saudi Arabia.
previous article Integrating quality into quantity: survey research in the era of mixed methods
next article Corruption and inequality of wealth amongst the very rich

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

inform now
Footnotes
1
Calculations are based on World Bank’s Word Development Indicators (WDI) (2013).
 
2
Syria and Djibouti are excluded in the analysis.
 
4
In the study PPP based real GDP per capita was considered since PPP adjusted real GDP provides to measure the total value of nation’s output of goods and services by taking into account a common currency and a common set of prices.
 
5
Semiparametric fixed effects panel regression was estimated by using the XTSEMIPAR routine in STATA.
 
6
The curve m(.) can be estimated through the following equation:
$$ \hat{u}_{it} = \ln HCE - \hat{\mu }_{i} - \hat{\alpha }_{1} \ln IMR - \hat{\alpha }_{2} \ln POP = m(\ln GDP) + \varepsilon_{it}.$$
 
7
Age dependency ratio corresponds to the share of dependent people (not of working age)/working age population (economically active).
 
8
Country classifications are based on Word Bank list of economies 2010.
 
Literature
Alrouh, H., Ismail, A., Cheema, S.: Demographic and health indicators in Gulf Cooperation Council nations with an emphasis on Qatar. J. Local Glob. Health Perspect. (2013). doi:10.​5339/​jlghp.​2013.​3
Baltagi, B.H., Li, D.: Series estimation of partially linear panel data models with fixed effect. Ann. Econ. Financ. 3, 103–116 (2002)
Baltagi, B.H., Moscone, F.: Health care expenditure and income in the OECD reconsidered: evidence from panel data. Econ. Model. 27, 804–811 (2010)CrossRef
Chakroun, M.: Health care expenditure and GDP: An international panel smooth transition approach. Int. J. Econ. 4(1), 189–200 (2010)
Cremieux, P.Y., Ouellette, P., Pilon, C.: Health care spending as determinants of health outcomes. Health Econ. 8, 627–639 (1999)CrossRef
De Meijer, C., Wouterse, B., Polder, J., Koopmanschap, M.: The effect of population aging on health expenditure growth: A critical review. Eur. J. Ageing 10(4), 353–361 (2013)CrossRef
Desbordes, R., Verardi, V.: Refitting the Kuznets curve. Econ. Lett. 116(2), 258–261 (2012)CrossRef
Di Matteo, L.: The income elasticity of healthcare spending: A comparison of parametric and nonparametric approaches. Eur. J. Health Econ. 4(1), 20–29 (2003)CrossRef
Di Matteo, L.: The macro determinants of health expenditure in the United States and Canada: Assessing the impact of income, age distribution and time. Health Policy 71(1), 23–42 (2005)CrossRef
Dreger, C., Reimers, Reimers: Health care expenditures in OECD countries: A panel unit root and cointegration analysis. Int. J. Appl. Econ. Quant. Stud. Euro-Am. Assoc. Econ. Dev. 2(2), 5–20 (2005)
Fan, J., Gijbels, I.: Variable bandwidth and local linear regression smoothers. Ann. Stat. 20, 2008–2036 (1992)CrossRef
Farag, M., NandaKumar, A.K., Wallack, S., Hodgkin, D., Gaumer, G., Erbil, C.: The income elasticity of health care spending in developing and developed countries. Int. J. Health Care Financ. Econ. 12(2), 145–162 (2012)CrossRef
Gerdtham, U.G., Löthgren, M.: On stationarity and cointegration of international health expenditure and GDP. J. Health Econ. 19(4), 461–475 (2000)CrossRef
Gupta, S., Verhoeven, M., Tiongson, E.R.: The effectiveness of government spending on education and health care in developing and transition economies. Eur. J. Polit. Econ. 18(4), 717–737 (2002)CrossRef
Hansen, P., King, A.: The determinants of health care expenditure: a cointegration approach. J. Health Econ. 15(1), 127–137 (1996)CrossRef
Hardle, W., Müller, M., Sperlich, S., Werwatz, A.: Nonparametric and Semiparametric Models. Springer, Berlin (2004)CrossRef
Herwartz, H., Theilen, B.: The determinants of health-care expenditure: New results from semiparametric estimation. Health Econ. 19(8), 964–978 (2010)CrossRef
Hitiris, T., Posnett, J.: The determinants and effects of health expenditure in developed countries. J. Health Econ. 11(2), 173–181 (1992)CrossRef
Karl, T.L.: The Paradox of Plenty: Oil Booms and Petro-States. University of California Press, Berkeley (1997)
Libois, F., Verardi, V.: Semiparametric fixed-effects estimator. Stata J. 13(2), 329–336 (2013)
Liu, D., LI, R., Wang, Z.: Testing for structural breaks in panel varying coefficient models: with an application to OECD health expenditure. Empir. Econ. 40(1), 95–118 (2011)CrossRef
Lv, Z., Zhu, H.: Healh care expenditure and GDP in African countries: Evidence from semiparametric estimation with panel data. Sci. World J. (2014). doi:10.​1155/​2014/​905747
McCoskey, S.K., Selden, T.M.: Health care expenditures and GDP: Panel data unit root test results. J. Health Econ. 17(3), 369–376 (1998)CrossRef
Mehrara, M., Fazaeli, A.A., Fazaeli, A.R.: The relationship between health expenditures and economic growth in middle east & north. Int. J. Bus. Manag. Res. 3(1), 425–428 (2012)
Mehrara, M., Musai, M., Amiri, H.: The relationship between health expenditure and GDP in OECD countries using PSTR. Eur. J. Econ. Financ. Adm. Sci. 24, 1450–2275 (2010)
Newhouse, J.P.: Medical-care expenditure: A cross-national survey. J. Hum. Resour. 12(1), 115–125 (1977)CrossRef
Newson, R.: B-splines and splines parameterised by their values at reference points on the X-axis. Stata Tech. Bull. 10, 20–27 (2001)
Parker, S.W., Wong, R.: Household income and health care expenditures in Mexico. Health Policy 40(3), 237–255 (1997)CrossRef
Parkin, D., McGuire, A., Yule, B.: Aggregate health care expenditures and national income. Is health care a luxury good? J. Health Econ. 6(2), 109–127 (1987)CrossRef
Santiago, L.P., David, C.P., Carla, B.F.: On the relationship between GDP and health care expenditure: A new look. Econ. Model. 32, 124–129 (2013)CrossRef
Sen, A.: Is health care a luxury? New evidence from OECD data. Int. J. Health Care Financ. Econ. 5(2), 147–164 (2005)CrossRef
Yatchew, A.: Nonparametric regression techniques in economics. J. Econ. Lit. 36(2), 669–721 (1998)
Metadata
Title
Can healthcare ever be less than a necessity in MENA countries? A semiparametric estimation of the relationship between healthcare expenditure and GDP
Author
Özlem Yorulmaz
Publication date
18-04-2015
Publisher
Springer Netherlands
Published in
Quality & Quantity / Issue 3/2016
Print ISSN: 0033-5177
Electronic ISSN: 1573-7845
DOI
https://doi.org/10.1007/s11135-015-0201-5

Other articles of this Issue 3/2016

Quality & Quantity 3/2016 Go to the issue

OriginalPaper

Quality, quantity and financial sustainability of microfinance: Does resource allocation matter?

OriginalPaper

How to measure institutional diversity in higher education using revenue data

OriginalPaper

Cognitive interviewing as tool for enhancing the accuracy of the interpretation of quantitative findings

OriginalPaper

Multiple correspondence analysis: one only or several techniques?

OriginalPaper

The application of a multi-methodology approach to a corpus of social representations

OriginalPaper

Advanced models of quality function deployment: a literature review

Premium Partner

    Image Credits