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ISSN: 1554-3641 (Online)
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

Open AccessCopyright: © 2017 Rasha M.S. Istaiteyeh and Mohd Tahir Ismail. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

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Keywords

  • Health Care Expenditure
  • Granger Causality
  • GDP
  • Jordan