Are Healthcare Expenditures Related to Economic Growth in China? Bootstrap ARDL Approach.

Yu-Cheng Chang, Tsangyao Chang, Mei-Chih Wang

Frontiers in public health 2021

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This study attempts to investigate whether healthcare expenditures (HCE) are related to economic growth in China using a newly developed Bootstrap autoregressive distributed lag (ARDL) test for China over the period of 1990-2019. To avoid omitted variable bias, we use the ratio of the population of 65 years old over the total population (aging ratio) as a control variable. Empirical result indicates that no cointegration among these three variables. Granger causality test based on Bootstrap ARDL model demonstrates that one-way Granger causality running from HCE to aging ratio and from economic growth to both HCE and aging ratio. Empirical results have important policy implications for China understudy. Copyright © 2022 Chang, Chang and Wang.

Citation

Yu-Cheng Chang, Tsangyao Chang, Mei-Chih Wang. Are Healthcare Expenditures Related to Economic Growth in China? Bootstrap ARDL Approach. Frontiers in public health. 2021;9:766091