Abstract

The purpose of this study is to investigate the relationship among per capita gross domestic income (GDPpc) health spending and life expectancy at birth in Turkey for the period 1975-2017. One hypothesis in the literature is that long life expectancy is associated with higher economic development, while the other theory is that long life expectancy leads to an increase in population, thus affecting economic growth negatively. The channel of the positive effect is that the long life expectancy is associated with low mortality rates. VAR (Vector Autoregressive) and Granger causality analyses were used to test the existence of the relationship between these variables. According to Granger causality tests, we conclude that life expectancy and health expenditures are the cause of per capita income. VAR analysis reveals that the change in health expenditures depends on per capita income and life expectancy at birth.  A significant part of the change in per capita income is due to life expectancy at birth.