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Article Citation - WoS: 10Citation - Scopus: 10Convergence of Economic Growth and Health Expenditures in Oecd Countries: Evidence From Non-Linear Unit Root Tests(Frontiers Media Sa, 2023) Celik, Esref Ugur; Omay, Tolga; Tengilimoglu, DilaverIntroductionThe relationship between human capital, health spending, and economic growth is frequently neglected in the literature. However, one of the main determinants of human capital is health expenditures, where human capital is one of the driving forces of growth. Consequently, health expenditures affect growth through this link. MethodsIn the study, these findings have been attempted to be empirically tested. Along this axis, health expenditure per qualified worker was chosen as an indicator of health expenditure, and output per qualified worker was chosen as an indicator of economic growth. The variables were treated with the convergence hypothesis. Due to the non-linear nature of the variables, the convergence hypothesis was carried out with non-linear unit root tests. ResultsThe analysis of 22 OECD countries from 1976 to 2020 showed that health expenditure converged for all countries, and there was a significant degree of growth convergence (except for two countries). These findings show that health expenditure convergence has significantly contributed to growth convergence. DiscussionPolicymakers should consider the inclusiveness and effectiveness of health policies while making their economic policies, as health expenditure convergence can significantly impact growth convergence. Further research is needed to understand the mechanisms behind this relationship and identify specific health policies most effective in promoting economic growth.Article Health Capital and a Sustainable Economic-Growth Nexus: a High-Frequency Analysis During Covid-19(Mdpi, 2024) Sungur, Nazli Ceylan; Akdogan, Ece C.; Gokten, SonerThe recent COVID-19 pandemic effectively concretized the vitality of health expenditure and the economic-growth nexus, and the threat of new pandemics make re-examining this relationship a necessity. Consequently, this paper focuses on this nexus for developed OECD countries, paying particular attention to the effects of the COVID-19 pandemic. The use of stock indices as proxy variables for health expenditure and economic growth enabled the examination of this nexus by using high-frequency data and financial econometric techniques, specifically via rolling correlation and bivariate GARCH analyses. The data span 1170 observations between 15 May 2018 and 11 November 2022. Since the research period overlaps with the outbreak of Ukraine-Russia war, additional insights are obtained regarding the effects of the war as well. It was found that an increase in health expenditure leads to a delayed increase in economic growth even in the short term, and this relationship mainly develops during crises such as epidemics, wars, supply chain breakdowns, etc., for developed OECD countries. Given the aging population of developed countries, which will probably deteriorate the health status of those countries in the near future, the increasing political tensions around the globe and the considerations of a global recession highlight the importance and the inevitability of investments in health capital for developed countries as well.
