Heath expenditures, which play a key role in ensuring economic growth, differ according to development levels of countries. While health expenditure raises the health level of individual and society, it also affects economic growth, which is defined as the increase in the amount of goods and services produced in a country over time, through the contributions made to human capital. A healthy society has a critical importance for qualitative human resource and economic growth/development. The purpose of this study is to estimate the causality relation between income and health expenditures in the European Union (EU) countries. This paper utilizes Emirmahmutoğlu and Köse (2011) Panel Causality Test out of new generation panel causality tests. The estimates indicate causality between income and at least one type of health expenditures studied in %82,1 of the EU countries. In addition, that the increase in income in the EU countries increased the total health expenditure the most, and the increase in the public health expenditures caused the income to increase are among the results found in this study.
EU Countries, Human Capital, Health Expenditure, Economic Growth, Panel Causality Analysis