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Dynamic Linkages between Health and Wealth in the European Union
Department of Business Administration, Western Macedonia University of Applied Sciences, Myrsini, Greece
Department of Economics, Aristotle University of Thessaloniki, Thessaloniki, Greece
Department of Economics, Aristotle University of Thessaloniki, Thessaloniki, Greece
- 1 Department of Business Administration, Western Macedonia University of Applied Sciences, Myrsini, Greece
- 2 Department of Economics, Aristotle University of Thessaloniki, Thessaloniki, Greece
- 3 Department of Economics, Aristotle University of Thessaloniki, Thessaloniki, Greece
Theoretical Economics Letters·Volume 08 (2018)·Pages 709–719·Published 6 March 2018·DOI10.4236/tel.2018.84048
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Abstract
The relationship of health and wealth has been for long the subject of aca demic research as well as a hot policy issue. In this paper we examine this relationship using data on infant mortality rate and real GDP per capita for the 28 European Union countries over the period 1960-2012. The long-run and short run dynamics of the relationship are examined through panel co-integration tests, error correction models and Granger causality tests. The empirical analysis reveals the existence of a long-run negative relationship between GDP and infant mortality. In the short-run there are bidirectional causal effects between the two variables. In summary, the two variables affect each other in a spiral way.
KeywordsInfant Mortality RateIncomePanel Data Analysis
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