Abstract:

Endogenous growth models, one of the economic growth models, emphasize the impact of human capital on the growth and welfare of countries. There are many indicators to measure human capital. Health, which is one of these indicators, is important for sustaining production and increasing economic welfare. Therefore, health expenditures are one of the variables that show people's quality of life. In this study, annual data for the period from 1975 to 2019 is used. The causality relationship between economic growth and health expenditures is investigated using the panel Fourier causality test for 21 OECD countries. According to the individual results, there is a one-way causality relationship from economic growth to health expenditures for Germany, Austria, Denmark, Finland, Netherlands, Spain, Sweden, Switzerland, Korea and a bidirectional causality relationship for Iceland. In addition, the results obtained for the panel show that there is a one-way causality relationship from growth to health expenditures.

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