Abstract
PurposeThe study aims to determine whether there is a bidirectional causality relationship between health expenditures and per capita income in Brazil, Russia, India, China, South Africa and Turkey (BRICS+T).Design/methodology/approachFor that purpose, the 2000–2018 period data of the variables were tested with the Kónya (2006) panel causality test. Additionally, the causality relationships between public and private health expenditures and per capita income were also investigated in the study.FindingsAccording to the analysis results, there is no statistically significant causality relationship from total health expenditures and public health expenditures to per capita income in the relevant countries. Besides, there is a unidirectional causality relationship from private health expenditures to per capita income only in Turkey. On the other hand, a unidirectional causality relationship from per capita income to total health expenditures in China, Russia, Turkey and South Africa and from per capita income to public health expenditures in India, Russia, Turkey and South Africa were determined. Consequently, a causality relationship from per capita income to private health expenditures was found out in Russia and Turkey.Originality/valueThe variables are tested for the first time for BRICS+T countries, vis-à-vis the period under consideration and the method used.
Highlights
One of the most important inputs involved in the production process is the labor factor
Conclusion and policy implementation In this study, the relationships between per capita income and total health expenditures, public health expenditures and private health expenditures in Brazil, Russia, India, China, South Africa and Turkey were examined in the context of the period 2000–2018
The main findings of the study are as follows: (1) There is no causality relationship from total health expenditures to per capita income in all countries studied; (2) A unidirectional causality relationship from income per capita to total health expenditures was identified in China, Russia, Turkey and South Africa
Summary
One of the most important inputs involved in the production process is the labor factor. Even though a transition from labor-intensive to capital-intensive production was experienced after the Industrial Revolution, labor efficiency and efforts to increase this productivity always remain important. To this end, efforts to increase labor productivity led to the emergence of the concept of human capital. The determinations regarding the contribution of human capital to the production process and economic growth resulted in the inclusion of this variable in growth models. Lucas (1988) included human capital in his model as a production factor, just like real capital. Many scientific studies have suggested the positive effect of human capital on economic growth
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