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Social Indicators Research

, Volume 137, Issue 1, pp 231–256 | Cite as

Re-Examining Vicious Circles of Development: A Panel Var Approach

  • Bahar Bayraktar-Sağlam Bayraktar-Sağlam
Original Research

Abstract

Using panel data from 102 countries in 1975–2010, this paper explores the dynamic interaction among health, education and growth by applying panel VAR techniques. Empirical findings reveal that the predictive pattern among health, education and economic growth is not stable in the cross section of countries. While health has positive contribution to growth for all countries, education has benefited only higher middle income and high-income OECD countries. Economic growth has predictive power for the components of human development in the high-income OECD countries. Further, econometric evidence reveals that bi-directional relationship between health and education should be supported to reap the benefits of human development on economic growth.

Keywords

Economic growth Health Education Dynamic panel data 

JEL Classification

C12 C23 I10 O40 

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Copyright information

© Springer Science+Business Media Dordrecht 2017

Authors and Affiliations

  1. 1.Department of EconomicsHacettepe UniversityAnkaraTurkey

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