THE RELATİONSHİP OF HEALTH AND EDUCATİON EXPENDİTURES TO ECONOMİC GROWTH: RESEARCH İN TURKEY AND OECD COUNTRİES

Abstract

Although different tools have historically been used to determine the level of development of countries, there is no common tool agreed upon by different countries. This situation is also seen in economic growth theories, and each theory uses different tools as growth criteria. The Internal Growth Theory, which is based on indicators such as the applicability of technological innovations, the development/dissemination of technology within the country and the best cultivation of human resources, predicts that expenditures on human resources will also positively affect growth. From this point of view, it is thought that the health and education expenditures of the countries have a positive contribution to the growth of the country's economy. In this context, a data set was created regarding the health and education expenditures and GDP of Turkey and 26 OECD countries between 2000-2022; relationship levels between them were examined. As a result of the analyzes made, it was determined that there was a correlation between the units in question; According to the unit root test results, it was determined that the series were stationary in all other variables, except for the labor force and GDP variables, and it was detected that the labor force and GDP variables were stationary at the first differences. As a result of the cointegration and causality analyzes conducted in the study, it was found that there was a cointegration relationship between the variables; there is also a causal relationship from health expenditures to GDP; It was concluded that there is no causality relationship from education expenditures to GDP.

Keywords

• internal growth theory
• health expenditure
• education expenditure
• gdp
• cointegration test