Abstract:

With education, health opportunities shape the character of human capital and labour. The health expenditure contributes to the growth performance through access to health services. This study examined the causal relationship between the 2000-2017 period health expenditure and economic growth for 17 OECD countries. The data of the variables was analyzed using the Causability Test of Konya (2006). With the findings, a one-way causal relationship for Denmark, Germany and Sweden from economic growth to health expenditure; from health expenditure for Belgium, Greece, Iceland, Italy, Luxembourg, the Netherlands and Portugal to growth. For Austria, Switzerland, Ireland and Turkey, a bilateral causal relationship has been observed. In the entire panel, it has been found that there is a double causal relationship between health expenditure and economic growth. The resources dedicated to health expenditure support the growth potential by improving both growth performance and the quality of human life and human capital; thus the increased national income makes it possible to allocate more resources for health.

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