Health Expenditures and Gross Domestic Product An Empirical Analysis for Member-Countries of European Union with Cointegration Analysis

Abstract

This study investigates the relationship between health expenditures and GDP for 15 member - countries of European Union. Initially, the unit root test is examined for all used variables and then the Engel - Granger and Johansen and Juselious cointegration tests are applied. In order to examine the short - run and long - run relationships of the above variables an error correction model methodology is used. The results of this analysis suggest that there is a long - run relationship between health expenditures and GDP in most member-countries of European Union.