Abstract:

Health spending, which contributes significantly to the development, preservation and improvement of the country’s efficiency, is also one of the key determinants of economic growth and the level of human development. This close relationship between health expenditure and economic growth and the level of human development is due to the positive impact of health, an important element of human development level, on economic growth by increasing labour efficiency. In this context, the study has studied the relationship between health expenditure and growth referred to as the wealth of countries and human development referred to as the wealth of human life. The relationship between the total health expenditure in the 27 OECD countries with the growth and human development variables was analyzed using the annual data of the 1990-2015 period by the panel developed by Dumitrescu and Hurlin (2012) with the help of the Granger causality test. According to the Causability Test results, there is a two-way causal relationship between health expenditure and economic growth and human development index, and between human development level and economic growth, a one-way causal relationship from human development level to economic growth.