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ABSTRACT This article investigates the long-run nexus between health care expenditure and income in Small Island Developing States (SIDS) spanning a period of 24 years from 2000–2023. In particular, the article examines the non-stationarity and cointegration properties of health expenditure and its determinants. To attain reliable estimates, the empirical approach explicitly controls for cross-sectional dependence and unobserved heterogeneity across countries.
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