Does Health Expenditure Increase Economic Growth: Evidence from Tunisia

Marwa Sahnoun
JEL codes: 
H51 - Government Expenditures and Health, I15 - Health and Economic Development, I18 - Government Policy; Regulation; Public Health.
The role of health in human capital is now recognized, as is the role of capital in economic growth since Schultz (1961) and Becker (1964). The objective of this paper is to use some recent developments in non-stationary time series econometrics to explore the cointegration between health spending and economic growth in Tunisia over a period of forty-four years. This paper shows a positive relationship between health spending and economic growth. However, Tunisia needs to be able to provide more efforts in this vital sector, with complementarity between the private sector and the public sector to be ensured. This is the guarantee of an increase in real output in Tunisia.
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