Research Article Open Access

Stationarity and Cointegration between Health Care Expenditure and GDP for Jordan

Rasha M.S. Istaiteyeh1 and Mohd Tahir Ismail2
  • 1 The Hashemite University, Jordan
  • 2 Universiti Sains Malaysia, Malaysia

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.

American Journal of Applied Sciences
Volume 14 No. 7, 2017, 682-689

DOI: https://doi.org/10.3844/ajassp.2017.682.689

Submitted On: 11 June 2016 Published On: 22 June 2017

How to Cite: 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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Keywords

  • Health Care Expenditure
  • Granger Causality
  • GDP
  • Jordan