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Education, Health, and Economic Growth Nexus: A Bootstrap Panel Granger Causality Analysis for Developing Countries

Hüseyin Şen, Ayşe Kaya and Barış Alpaslan

Sosyoekonomi Journal, 2018, issue 26(36)

Abstract: This paper studies an empirical analysis of the causality between education expenditure, health expenditure, and economic growth for the selected eight developing countries (Argentina, Brazil, Chile, India, Indonesia, Mexico, South Africa, and Turkey) over the period 1995-2012. For this purpose, we employ the Bootstrap Panel Granger Causality test. Our findings indicate that only in two of eight developing countries (Brazil and Mexico) there exists a significant and positive causality, running from education and health expenditure to economic growth. However, we found a significant but negative causality among education expenditure, health expenditure, and economic growth for Indonesia. For the rest of the countries that we consider in this paper, no causality was found between these variables.

Keywords: Education and Health Expenditure; Economic Growth; Developing Countries; Bootstrap Panel Granger Causality Analysis. (search for similar items in EconPapers)
JEL-codes: I15 I25 O11 E62 (search for similar items in EconPapers)
Date: 2018
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