The effect of health expenditures on growth: A panel regression analysis on fragile five countries

Health expenditures take place in one of the important topics of health economy. Countries can use their resources as an investment tool for health expenditures if they know its significance. By depending this, it is a good opportunity for the right comparison between countries and sectors. With the help of the results that are associated with in this field, countries can see their developing levels and they can find a chance to present their health status. In today's word, the importance of investments in human beings has been increasing day by day. Thanks to this reason, the number of studies that are related to health, education, and culture have raised in terms of understanding the relations with economic growth. As the literature reviewed, we infer that health expenditures in developing countries affect the economic growth in a positive way. On the other hand, according to author's knowledge, there is no such study that examined the same affect for the fargile five. In this thesis study, the impact of health expenditures on economic growth for fragile five countries is examined. In line with this objective, the impact of health expenditures on economic growth is tested using panel data analysis for the countries that were in fragile five for the years 2013, 2016 and 2017. The time period that consist of 17 years between 2000 and 2016 is examined by using panel data analysis. The dependent variable of study is real per capita gross national product while the independent variable is real per capita health expenditures. In addition to this, life expectancy at birth and baby mortality rate are used as control variables. According to the results of fixed effect model, it is seen that real per capita health expenditures has a positive and statistically significant impact real per capita gross national product. Baby mortality rate has a negative and statistically significant effect while life expectancy at birth has no statistically significant effect on economic growth. Keywords: Health expenditures, economic growth, panel data analysis