The Relationship Between Income Inequality, Health Expenditures and Life Expectation: Example of Developing Countries

Abstract

The Problem of the Study: In the last forty years, the liberalization process experienced by developing countries has significantly affected the economic development level of these countries. However, the impact of economic development of these countries on income distribution has been a subject of serious debate. In particular, the increase in income inequality has affected the health policies of these countries and the quality of life of the people living there has become an important problem. The Purpose of the Study: In this study, the relationship between income inequality experienced in developing countries and health policies and quality of life is investigated. n other words, it is aimed to determine whether there is a short and long term relationship between income inequality, health expenditures and life expectancy in selected countries.. Method: In this research, the relationship between income inequality with health expenditures and life expectancy is analyzed by using Pedroni cointegration and Granger Causality tests. The main reason for using the Panel Data Analysis method in the research is that it allows the use of data at both the individual level and the time level. Findings and Results: According to the findings of the cointegration and causality test conducted within the scope of the research, there is a statistically significant relationship between income inequality and the health expenditures implemented by countries and the life expectations of people in this country in a short and long term. According to this, programs and practices that will help to solve the income inequality problem in developing countries may positively affect health policies in these countries and may increase the quality of life.