Abstract:

The physical capital argument, in particular after the 1980s, indicates the inclusion of knowledge, skills and non-material labour processes to a new historical momentum. Human capital, understood as the anti-thesis of physical capital, is the product of these periodic conditions. In human capital, it is a human-centric approach. Therefore, education, health, population or a whole demographic elements are considered. But in economic studies, when human capital is called, it is mainly focused on the relationship between education spending and economic growth. The aim of the study in this direction is to investigate the relationship between health expenditure and economic growth, which is another important component of the human capital factor, using the panel data econometrics method in particular the G20 countries. In this context, according to the Panel Causal Test of Dumitrescu-Hurlin (2012) there is a one-way causal relationship from economic growth figures to health expenditure. With the results of the long-term integration rates, it has been found that increases in health expenditure (SH) per person for the panel in general have a positive and statistically significant impact on economic growth (EB) figures. According to this conclusion, an increase of 1% in health expenditure per person increases economic growth rates by 0.81% in the long term. Keywords: Health spending, Economic growth, Panel data econometrics JEL Classification: I15, O47

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