The relationship of productivity and health: An econometric analysis for Asia-Pacific Economic Cooperation countries

Productivity has an important place in the growth and development of an economy. In this study; The relationship between productivity and health was examined by panel data analysis method. While examining, the 2000-2018 period data of the Asia and Pacific Economic Cooperation (APEC) member countries were used. In this study research, the Total Factor Productivity (TFV) series was used in real terms to represent the productivity variable, which is the dependent variable of the model. The share of total health expenditures in Gross Domestic Product (GDP) was taken as the health criterion for the independent variable. The control variables of the model are energy consumption and trade gap. As a result of the analyzes made, it is clear that health is not a variable that affects productivity. However, it was concluded that productivity is the reason of health expenditures. The finding that productivity affects health can be explained by the fact that productivity growth leads to income growth and then to an increase in health spending.