The relationship between health and growth in eurasian economic union

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.