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ORIGINAL RESEARCH article

Front. Public Health
Sec. Health Economics
Volume 12 - 2024 | doi: 10.3389/fpubh.2024.1437304
This article is part of the Research Topic Reviews in Public Health Expenditure and Performance View all 14 articles

Health-Led Growth Hypothesis and Health Financing Systems: An Econometric Synthesis for OECD Countries

Provisionally accepted
EMRE ATILGAN EMRE ATILGAN 1*HASAN M. ERTUGRUL HASAN M. ERTUGRUL 2ISMAIL O. BAYCAN ISMAIL O. BAYCAN 2HAKAN ULUCAN HAKAN ULUCAN 2
  • 1 Department of Health Management, Faculty of Health Sciences, Trakya University, Edirne, Türkiye
  • 2 Department of Economics, Anadolu University, Eskişehir, Türkiye

The final, formatted version of the article will be published soon.

    Introduction: This study investigates the Health-Led Growth Hypothesis (HLGH) within OECD countries, examining how health expenditures influence economic growth and the role of different health financing systems in this relationship. Methods: Utilizing a comprehensive analysis spanning 2000 to 2019 across 38 OECD countries, advanced econometric methodologies were employed. Both second-generation panel data estimators (Dynamic CCEMG, CS-ARDL, AMG) and first-generation models (Panel ARDL with PMG, FMOLS, DOLS) were utilized to test the hypothesis. Results: The findings confirm the positive impact of health expenditures on economic growth, supporting the HLGH. Significant disparities were observed in the ability of health expenditures to stimulate economic growth across different health financing systems, including the Bismarck, Beveridge, Private Health Insurance, and System in Transition models. Discussion: This study enriches the ongoing academic dialogue by providing an exhaustive analysis of the relationship between health expenditures and economic growth. It offers valuable insights for policymakers on how to optimize health investments to enhance economic development, considering the varying effects of different health financing frameworks.

    Keywords: Health-led growth hypothesis, Health expenditure, economic growth, OECD countries, Health Financing Systems, Second generation panel data analysis

    Received: 23 May 2024; Accepted: 15 Jul 2024.

    Copyright: © 2024 ATILGAN, ERTUGRUL, BAYCAN and ULUCAN. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

    * Correspondence: EMRE ATILGAN, Department of Health Management, Faculty of Health Sciences, Trakya University, Edirne, Türkiye

    Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.