The Health-Led Growth Hypothesis: An Empirical Evidence From Turkey
The well-known health-led growth hypothesis claims a positive correlation between health expenditures and economic growth. The objective of this paper is to empirically investigate the health-led growth hypothesis for Turkish economy by employing different econometric techniques, including the Bound test approach, autoregressive-distributed lag approach (ARDL) and Kalman Filter Modelling for the 1975-2013 periodby investigating the co-integration relationship between economic growth and health expenditures. The ARDL model was employed in order to investigate the long-term and short-term static relationship between health expenditures and economic growth. The results show that %1 increase in health expenditures will lead to % 0.564 per cent increase in GDP. These findings are also supported by the Kalman Filter Model’s results. Our ﬁndings show that the Turkish case supports the health-led growth hypothesis (HLGH).
Keywords— Health-Led Growth Hypothesis; Bound Test; ARDL Model; KalmanFlter Method.