Analysis of the Relationship Between Health Expenditure and Economic Growth in Egypt (2000–2022)

Document Type : Original Article

Authors

1 Financial Economics Department,, School of Business Administration, Ahram Candian University. Giza, Egypt

2 Insurance and Actuarial Sciences Department, Faculty of Commerce, Cairo University, Egypt

Abstract

Abstract
Achieving sustainable economic growth that promotes welfare is a major challenge for governments worldwide. Economic growth is influenced by various factors, with the accumulation of physical and human capital being key determinants. Among these, health plays a crucial role in impacting productivity through improved worker efficiency and reduced sick leave days. In Egypt, the healthcare system is facing challenges such as underfunding and high out-of-pocket payments. The aim of this study is to analyze the relationship between health expenditure and economic growth over the period 2000–2022. To determine the optimal lag length, the study employs time series methods, including unit root tests, the augmented Dickey-Fuller test, and the Akaike Information Criterion. The results indicate a significant short-run relationship between health expenditure and gross domestic product (GDP). The study concluded with policy recommendations emphasizing the importance of monitoring the progress of health sector reforms, particularly from the perspective of health expenditure. As the ongoing Universal Health Insurance (UHI) system rollout involves key changes in health financing arrangements, these changes could serve as a valuable avenue for future research.

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