Abstract:
This paper examines the long run and causal relationship between health expenditures and
economic growth in the in Eurasian Economic Union over the period 1995-2014. For this
examination, panel cointegration and causality methodologies are utilized. Cointegration results
which obtained from Pedroni and Kao tests support an evidence of a long run relationship
among the variables under investigation. Long run elasticities indicate that health expenditures
affect growth positively. Causality results, on the other side, provide a strong support of a bi-directional running between health expenditures and economic growth both in the short and in
the long run.