The Effect of Health Research and Development Expenditures on Economic Growth


Ekinci G., Köse K. A., Cihan A., Sur H.

Hacettepe Sağlık İdaresi Derg.*, vol.26, no.3, pp.597-614, 2023 (Peer-Reviewed Journal)

  • Publication Type: Article / Article
  • Volume: 26 Issue: 3
  • Publication Date: 2023
  • Journal Name: Hacettepe Sağlık İdaresi Derg.*
  • Journal Indexes: TR DİZİN (ULAKBİM)
  • Page Numbers: pp.597-614
  • Istanbul University Affiliated: Yes

Abstract

This study aims to determine the effect of health R&D (Research and Development) expenditures on economic growth at the level of 10 countries (Czech Republic, Hungary, Korea, Poland, Portugal, Slovakia, Turkey, Romania, Russia, and South Africa) by using data between 2004-2019. Gross Domestic Product (GDP) as representative of economic growth; as the representative of R&D Expenditures in health, Health R&D Expenditures were considered. In the analysis of the relationships between variables Least Square Test, Granger Causality Test, Cointegration Tests, FMOLS and DOLS tests were applied within the framework of Panel Data Analysis. The existence of a bidirectional Granger-type causality relationship between Health R&D Expenditures and GDP and the long-term cointegration relationship between them was determined. FMOLS and DOLS analysis results revealed the positive effect of Health R&D expenditures on economic growth. The results showed that health R&D activities play an important role in general R&D activities in the countries covered by the study and that health R&D expenditures/investments positively affect economic growth.