Affiliation:
1. Istanbul University-Cerrahpaşa, Turkey
Abstract
Education and health expenditures can affect the economic growth and development through various channels. Therefore, determinants of education and health expenditures are important for policymaking. This study investigates the mutual interaction between education and health expenditures in a sample of the new EU members over the 2000-2019 duration through causality analysis with cross-sectional dependence. The findings of panel level causality analysis unveil a unidirectional causality from health expenditures to education. Furthermore, the findings of country level causality analysis uncover a unidirectional causality from health expenditures to education in Estonia and Slovak Republic. As a result, health expenditures have a significant influence on education, but education does not have a significant influence on health expenditures in sample of the new EU member states.