Stationarity and Cointegration between Health Care Expenditure and GDP for Jordan
Rasha M.S. Istaiteyeh1 & Mohd Tahir Ismail2 Show affiliations
- The Hashemite University, Jordan
- Universiti Sains Malaysia, Malaysia
American Journal of Applied Sciences, Volume 14, Issue 7, pp. 682–689 · doi.org/10.3844/ajassp.2017.682.689
Abstract
This paper explores the Granger-causality relationship between real GDP per capita and real health care expenditure per capita for Jordan during 1995 through 2013. The findings point out that the dominant type of Granger-causality is unidirectional. Furthermore, income elasticity of health expenditure is less than 1, which means that health care is a necessary good in Jordan. To this end, policies must be aimed at raising national income to improve eventually the well-being of the population.
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Istaiteyeh, R. M. & Ismail, M. T. (2017). Stationarity and Cointegration between Health Care Expenditure and GDP for Jordan. American Journal of Applied Sciences, 14(7), 682–689. https://doi.org/10.3844/ajassp.2017.682.689
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