| Abstract: |
This paper assesses the determinants of provincial public health expenditures
for Turkey, taking spatial dimension into account. A general-to-specific
approach has been adopted where spatial variations in the relationships have
been examined, using the panel data at NUTS3 level for the period 2009-2019.
Descriptive spatial exploratory analysis indicates the existence of a
significant positive spatial association for provincial GDP per capita, health
expenditures, and other explanatory variables. However, the traditional
East-West divide shows persistence in income and health indicators. Our
empirical results indicate that there is positive spatial interaction with
regard to provincial health expenditures. This result corroborates the
externality effect of government expenditures. Our results also show the
presence of strong path dependency, implying long-term policy stability.
According to our findings, it seems that age structure, education level, and
urbanization are important determinants of public health expenditures with
significant spatial effects. Overall, our empirical results do not support the
supply-induced demand theory, but rather indicate that demand side factors are
more prominent determinants of central public health expenditures. |