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Front. Public Health | doi: 10.3389/fpubh.2019.00324

Bootstrap ARDL on health expenditure, CO2 emissions and GDP growth relationship for 18 OECD countries

  • 1Shanghai University, China
  • 2Hubei University Of Economics, China

Using annual time-series data over the period 1975–2017, the researcher apply the Bootstrap autoregressive distributed lag (ARDL) cointegration model developed by McNown et al.(2018), to examine whether there is a long run relationship among health expenditure, CO2 emissions (CO2), and gross domestic product (GDP) per capita in 18 OECD countries. We find cointegration exists in Netherlands when real GDP per capita serves as dependent variables, in New Zealand when health expenditure is the dependent variable and in the United States when CO2 emissions is dependent variable. The main results show evidence of a short run relationship between the three variables. The empirical results support that there is a bidirectional causality between health expenditure and GDP growth for Germany and the United States, between CO2 emissions and GDP growth for Canada, Germany, and the United States, and between health expenditure and CO2 emissions for New Zealand and Norway. The results also indicate that there are unidirectional causality in other countries.

Keywords: Health expenditure, CO2 emissions, GDP growth, Long-run relation, Bootstrap ARDL

Received: 30 Jul 2019; Accepted: 22 Oct 2019.

Copyright: © 2019 Wang, PEI, Li and WU. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

* Correspondence:
Prof. Chien-Ming Wang, Shanghai University, Shanghai, 200444, Shanghai Municipality, China, cmwang8@gmail.com
Prof. Cheng-Feng WU, Hubei University Of Economics, Wuhan, Hubei Province, China, wuchengfeng@hbue.edu.cn