الفهرس | Only 14 pages are availabe for public view |
Abstract Health expenditure contributes positively to stimulating economic growth; this relationship is known as health-led growth hypothesis. The directional relationship between health expenditure and economic growth was found to be moving in both directions. from one side good health affect labor supply positively, reduce the opportunity cost of resources used in treatment; it also has a positive effect on educational returns and increases the incentive to save. On the other side with high levels of economic growth a country will have more capacity to increase resources advocated to health, and will have better infrastructure for swage as well as clean water. The aim of this study is to test the health expenditure led growth hypothesis in Egypt, through investigating the casual relationship between health expenditure and economic growth. The study employs a VECM- model test within multi-variate cointegration and error correction framework to analyze the direction of relationship between both variables. The study used data from 1980 to 2010. The main findings of this study indicate a one way Granger causality running from economic growth to health expenditure in the short run. While in the long run there is a one way Granger causality running from health expenditure to economic growth. |