What drives the healthcare sector’s economic impact? Evidence from European countries

Timotej Jagric*, Stefan Otto Grbenic, Vita Jagric

*Korrespondierende/r Autor/in für diese Arbeit

Publikation: Beitrag in einer FachzeitschriftArtikelBegutachtung

Abstract

Purpose – With high public debts and suffering economies after the COVID-19 pandemic, governments will
look for ways to promote recovery. Literature substantially reports on the favorable macroeconomic impact of
the healthcare sector.
Design/methodology/approach – The authors use data on 19 European countries. Over 30 variables are
analyzed to find factors that foster or suppress the economic impact of the healthcare sector. The economic
impact is thereby expressed through five types of total multipliers, acting as dependent variables. The authors
estimate multiple econometric models.
Findings – The results indicate factors that intensify or reduce the economic impact of the healthcare sector as
they cause the value of one or more economic multipliers to augment or to diminish. Positive effects are
expected from the growth of public funds’ share in total healthcare expenditure leading to a higher output,
income and value-added multipliers. The import multiplier diminishes when expenditure on healthcare as
percent of GDP rises. On the other hand, rising expenditure on pharmaceuticals in the share of healthcare
expenditure lowers the output multiplier. Rising GDP per capita and higher healthcare systems’ technical
efficiency cause the employment multiplier to lower.
Originality/value – Policymakers can strengthen the economic impact of the healthcare sector on the national
economy. This could be achieved by stimulating factors, being identified in our study. Strengthening the
economic impact of the healthcare sector is especially welcomed when fostering economic recovery is needed.
Originalspracheenglisch
Seitenumfang13
FachzeitschriftInternational Journal of Health Governance
DOIs
PublikationsstatusAngenommen/In Druck - 18 Nov 2021

ASJC Scopus subject areas

  • Öffentliche Gesundheit, Umwelt- und Arbeitsmedizin
  • Betriebswirtschaft, Management und Rechnungswesen (sonstige)
  • Health policy
  • Paläontologie
  • Strategie und Management

Fields of Expertise

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