THE EFFECT OF HEALTH EXPENDITURES ON ECONOMIC GROWTH: AN ECONOMETRIC ANALYSIS

Abstract

All countries in the world aim to create a society composed of healthy individuals. Because for a country's economy to be strong and sustainable, a society consisting of healthy individuals is necessary. Health expenditures for the development of health services affect economic growth through human capital. An increase in health expenditures; It also affects economic growth by increasing people's life expectancy, life expectancy and quality of life. How health spending affects economic growth has always been explored. The aim of this study is; It is the analysis of the effects of health expenditure and household consumption expenditure on economic growth in OECD countries using panel data regression model. For this;, 37 OECD countries were examined, between 2011 and 2020. Hausman Test results show that fixed effects model should be accepted among models used in panel data analysis. In the obtained fixed effects model; It has been observed that there are different variances, autocorrelations and correlations between units. After all; It has been found that health expenditures and household consumption expenditure variables have a negative effect on economic growth. An increase of 1% in health expenditures reduces economic growth by 0.08%.