Relationship between government spending on health and economic growth in Algeria (2000-2019)

Saci Bessadat, Choukria Didouh

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Published: Jun 15, 2024

Keywords:

economic growth; public spending on health; public spending; autoregressive model

Saci Bessadat, Choukria Didouh

Abstract

This paper examined the relationship between public spending on health (XPD) and economic growth (GDP) in Algeria for the period 2000-2019 using annual data based on the autoregressive model (VAR). This study concluded that there is no long-term relationship between the variables through the results of the Johansen co-integration test, and the causality test according to Granger showed that there is no two- way causal relationship between public spending on health (XPD) and economic growth (GDP), in contrast to public spending (DAB), which has a positive effect towards economic growth (GDP). Impulse-Responses analysis showed the reality of the complex relationship between public spending on health (XPD) and economic growth (GDP) through the alternating response between positive and negative economic growth (GDP), and in the end, some recommendations were presented.

Issue

Vol. 61 No. 6 (2024)

Section

Articles

This work is licensed under a Creative Commons Attribution 4.0 International License.

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