Abstract
The aim of this study is to investigate long-run equilibrium relationship and the direction of causality between health care development and higher education in Northern Cyprus, which has shown a tremendous development in higher education sector. Results of the present study reveal that higher education is a long term determinant of health care development in this small island. Health care in Northern Cyprus converges to its long term equilibrium level by 35.2 % speed of adjustment every year through the channel of higher education growth in Northern Cyprus. The other finding of this study is that there exists unidirectional causality in the short term period that runs from higher education growth to health care growth in Northern Cyprus.
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