The Relationship between public spending on health and economic growth in Algeria: Testing for Co-integration and Causality

Boussalem, F., Boussalem, Z., Taiba, A.

Abstract:

This paper investigated the causality and co-integration relationships between public spending on health and economic growth in Algeria during 1974-2014 using annual data. This paper concentrated on time series co-integration and causality in ECM framework. The findings revealed that there is a long-run causality from public spending on health to economic growth  while it is not observed any short-run causality from public spending on health to economic growth. The lack of strong link from public spending on health to economic growth is not necessarily a reason to reallocate health investment away from the health sector. The improvements in health status will be worth the effort even if they turn out to have little effect on growth.

Keywords: public spending on health, Economic Growth, Co-integration, Causality

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  • Boussalem, F., Boussalem, Z., Taiba, A. (2014). The Relationship between public spending on health and economic growth in Algeria: Testing for Co-integration and Causality. International Journal of Business and Management, II(3), 25- 39.

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