Abstract:
Health-growth literature generally includes studies on developing countries. Unlike previous
health-growth literature, this paper investigates this issue in context of developed countries, G8 countries,
within a panel framework. Annual data ranging from 1995 to 2012 are used for this investigation in the
presence of capital stock. Methodology: Kao (1999) panel cointegration results indicate the existence of a
long-run equilibrium between the two. Findings: The findings from panel error correction model show the
existence of growth hypothesis in the short-run whereas the validity of growth-detriment hypothesis is
confirmed in the long-run. Recommendations: This studoy opens new directions for policy making
authorities.