G7 국가의 의료지출에 환경과 무역이 미치는 영향에 관한 연구: BCFE와 DCCE 추정법을 이용하여

Study on the Impact of the Environment and Trade on Health Expenditure in G7 Countries: Using the BCFE and DCCE Estimation Methods

Purpose - Health is essential for sustainable development. This has led to a rapid increase in health expenditure, and the rapid increase in health expenditure is a new global problem. There is concern about the increase in health expenditure. This study analyzes the impact of the environment and trade on health expenditure in advanced G7 countries. Design/methodology/approach - It considers dynamic health expenditure using the extended bootstrap-based bias-corrected FE estimator (BCFE) and the dynamic common correlated effects estimator (DCCE). This estimation method is efficient in the case of small sample panels, cross-sectional dependence, and heteroskedasticity. Findings - The estimated coefficients of CO2 and trade were significantly positive, and the sign of the interaction term was negative. CO2 emissions and trade openness increase health expenditure in advanced countries. Considering the interaction term, high trade openness offsets the effect of CO2 emissions on health expenditure. Research implications - The COVID-19 pandemic has caused a global health crisis, and it is very important to analyze the factors that can improve the health sector. It is considered a practical solution to achieve sustainable economic development, industrialization, and trade liberalization through renewable energy sources, green energy, and clean technology adoption to reduce CO2 emissions, and to slow the increase in health expenditure.