THE RELATIONSHIP BETWEEN ECONOMIC GROWTH AND HEALTH, R&D EXPENDITURES AND UNEMPLOYMENT IN TURKEY / Türkiye'de Ekonomik Büyüme İle Sağlık, Ar-Ge Harcamaları Ve İşsizlik İlişkisi

Abstract

Human capital, being one of the important factors affecting economic growth, has gained more importance especially since the beginning of the 1990s and the interest in this field has increased in economic growth studies. The increase in human capital accumulation contributes to the economic growth. Today, technological developments and R&D activities play an effective role in ensuring sustainable economic growth. Although the existence of a negative relationship between economic growth and unemployment is generally accepted in the economic theory, it is still a controversial issue because unemployment is a multidimensional problem. In this study, the relationship between economic growth and health expenditures, R&D expenditures, and unemployment in Turkey was investigated by using time series analysis for the period of 1990-2020. Johansen co-integration analysis results revealed that there is a long-run relationship between economic growth and health expenditures, R&D expenditures and unemployment in Turkey. The results of the study reveal that a positive change in the levels of health and R&D expenditures in Turkey has a positive contribution to economic growth, while there is a negative relationship between the level of unemployment and economic growth.

The Effect of Health and Education Expenditures on the Employment: Empirical Evidence From Türki̇ye

“…They analyze the impacts of health expenditure and life expectancy at birth on economic development using the ARDL co-integration test. Their results on causality are different from Şenol and Onaran (2022) who conclude that there exists a one-way causality from health expenditure and output. Further research for the Turkish economy on the importance of human capital and economic development is taken by Kurt (2015).…”

“…Also, a rise in education expenditure promotes a nation's literacy level. Therefore, individuals who live in these nations will be healthier and more educated so more individuals will be able to work in the market (Şenol and Onaran, 2022). As it declines the unemployment rate, it will raise the employment.…”