The Relationship between Education & Health Expenditures and Economic Growth in the Long Run in Turkey

In this study, it is aimed to examine the long term relationship among education expenditures, health-social services expenditures and GDP. 1998Q1-2016Q2 period was examined by a unit root test allowing multiple structural breaks that developed by Kapetanios (2005) and Maki (2012) cointegration test that considers multiple structural breaks. According to results of cointegration test, there is a long-run relationship between variables. And estimated cointegration equation by FMOLS method shows that; all variables in the cointegration equation are statistically significant and the signs of the variables are in line with expectations. In regard to FMOLS estimation; a 1% change in education expenditures cause a 0.51% increase in GDP, and a 1% increase in health-social services expenditures cause a 0.36% increase in GDP