The nexus between economic growth, health expenditure, environmental quality: a comparative study for E7 countries

The motivation of this study is to analyze the relationship between economic growth, health expenditures, environmental pollution, gross fixed capital formation and labor force by using annual data of E7 countries for the period 2000 to 2018. The co-integration coefficient of the variables was analyzed using the PMG technique, and the causality relationship between the variables was analyzed using the Emirmahmutoglu F, Kose N. Testing for granger causality in heterogeneous mixed panels. Econ Modell 2011;28:870-6 technique. In the empirical findings, the elasticity coefficient of health expenditures, environmental pollution, gross fixed capital formation and labor force variables is positive and significant. On the other hand, in the results of the causality relationship, it was concluded that economic growth and health expenditures are causal. It is concluded that economic growth is causal to CO₂ emissions. In addition, CO₂ emissions are the cause of health expenditures. As a result of the empirical findings obtained, the implementation of policies that will reduce environmental pollution in the perspective of sustainable growth will also affect health expenditures.