Investigating the Relationship between Healthcare Expenses and Life Expectancy with Gross Domestic Product (GDP) in Developing Countries of Asia and Europe

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Mohammad Hadian, et. al.


Economic growth and GDP increase along with the heightening of the quality of life and equality of income distribution are amongst the primary goals of the economic systems and development programs. The present study tries to investigate the relationship between healthcare expenses and life expectancy with GDP in the developing countries of Asia and Europe.

The present study is a retrospective analytical research that uses the data from the websites of the global bank and WHO for such a study population as the developing countries in Asia and Europe.

Considering the findings of the developing countries in Asia and Europe and based on the fact that the probability value (P-value) of the stationarity test is below 0.1 for the two variables “healthcare expenses” and “GDP”, it can be concluded that the null hypothesis (existence of a unit root) is rejected in this level (without differentiation) and that the variables are reliable hence there is no reason for rejecting the opposite presumption, i.e. the nonexistence of a unit root).

The summary of the results obtained from this study indicated that there is a long-term relationship between healthcare expenses and GDP in many of these countries that have stationary data (with at least one of the stationarity tests) in such a way that the causality of these two variables is from the side of GDP towards the healthcare expenses in some of the developing countries and from the healthcare expenses’ side towards GDP in some and bilateral in some others.

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