THE NEXUS BETWEEN HEALTH EXPENDITURES AND ECONOMIC GROWTH IN AUSTRALIA: EVIDENCE FROM TODA-YAMAMOTO APPROACH

Abstract

Health is one of the most important factors of human life. Increasing and improving the level of health is significant for people to continue their lives in a healthy way. Within this scope, health expenditures play an important role in increasing the life expectancy and quality of life of individuals. It can be said that a healthy and educated society is a prerequisite for economic growth, welfare and development of a country. The aim of this study is to examine the nexus between health expenditures and economic growth in Australia for the period of 1973-2018 by using Toda-Yamamoto causality test. The empirical results from the Toda-Yamamoto causality test show that there is a unidirectional Granger causality running from health expenditures to economic growth.