The Relationships between the Human Capital Investment and Economic Growth: A Panel Error Correction Model

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Tatoğlu F.

Journal of Economic and Social Research, sa.13, ss.77-90, 2011 (Hakemli Dergi)

  • Yayın Türü: Makale / Tam Makale
  • Basım Tarihi: 2011
  • Dergi Adı: Journal of Economic and Social Research
  • Derginin Tarandığı İndeksler: EconLit
  • Sayfa Sayıları: ss.77-90
  • İstanbul Üniversitesi Adresli: Evet

Özet

In this paper, long and short term relationships between human capital investment and economic growth for individuals and pooled cases in the OECD countries, over the period between 1975 and 2005, were examined. Health care expenditure is used as a proxy for the human capital. After the application of the panel unit root and panel cointegration tests, the long and short run income elasticities of health care expenditures are estimated using the panel error correction model. The results show that an increase in the health expenditures/investments causes an increase in the economic growths for all the countries in the short and long runs.