The Relationship Between Health Expenditure Efficiency and Key Macroeconomic Variables: Evidence from MIST Countries

Authors : Cuma Çakmak, Yaşar Turna, İsmail Biçer

Pages : 478-494

Doi:10.30613/curesosc.1750343

View : 205 | Download : 469

Publication Date : 2025-11-30

Article Type : Research Paper

Abstract :This study investigates the Granger causality relationship between the technical efficiency of health expenditures and key macroeconomic indicators. The aim is to assess how efficiently countries convert healthcare spending into health outcomes. The analysis covers Indonesia, Mexico, South Korea, and Türkiye over the period 2000–2022 using World Bank data. In the first stage, Data Envelopment Analysis (DEA) is applied to compute technical efficiency scores, using private, public, and out-of-pocket health expenditures as inputs, and life expectancy at birth and infant mortality rate as outputs. In the second stage, the Dumitrescu-Hurlin panel causality test examines causal links between health expenditure efficiency and macroeconomic variables: unemployment, inflation, and per capita income. The DEA results reveal differences in efficiency levels among the countries studied. The causality analysis identifies a bidirectional relationship between per capita income and health expenditure efficiency. Additionally, unidirectional causality is observed from efficiency scores to both unemployment and inflation. The findings suggest that improving health expenditure efficiency not only enhances health outcomes but also influences macroeconomic stability. While rising efficiency seems linked to lower unemployment and inflation, this claim should be moderated to avoid implying a causal relationship. Moreover, the feedback loop between per capita income and efficiency underscores the need for policies that promote both economic growth and effective healthcare spending.
Keywords : Sağlık Harcamaları, Sağlık Hizmetleri, Kişi Başı Gelir, Makroekonomik Göstergeler

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