The Effect of Health Expenditures on Economic Growth: A Practical Study

The purpose of this study is to test the effect of health expenditures on economic growth. The long-term relationship between health expenditure and economic growth was examined with the ARDL boundary test approach by using Turkey's monthly data for 2010-2016. According to the result of the analyses, a co-integration relationship was found between the series. It was then determined that health expenditures had a positive and statistically significant effect on economic growth during the period examined. The analyses also showed that a 1% increase in health expenditure increased economic growth by 0.55%. The Toda Yamamoto causality test was conducted to test the causality relationship between variables in the study. According to the result of the test, there is a causality relationship between economic growth and health expenditures