Health Expenditures, Human Capital, and Sustainable Development: Panel Evidence from the New EU Member Countries

Abstract

Both health and human capital are simultaneously resources and indicators of sustainable development. Therefore, this research article studies the causal interaction among total health expenditures, out-of-pocket expenditures, human capital, and sustainable development in eleven EU member countries during 2000–2020 through the panel causality test. The result of the causality test indicates that indicators of health expenditures, human capital, and sustainable development are closely interrelated, but the causal interaction among indicators of health expenditures, human capital, and sustainable development differs among the new EU members. On the one hand, health expenditures and human capital are significant factors underlying sustainable development. On the other hand, sustainable development is a significant determinant of health expenditures and human capital. Considering the significant role of human capital for sustainable development, education and training programs should especially be revised in a way to improve the sustainability and healthy life awareness and qualifications of the individuals. Furthermore, the digital transformation of health systems from both supply and demand sides should be supported by public health policies.

HDI index dimensions in the context of hybrid threats

“…Scientific literature that discusses human capital often focuses on its definition in relation to economic growth and development. However, little attention has been paid to studies on the relationship between human capital and life expectancy, education, health, or the impact of hybrid threats on social development (Sentürk et al, 2023) When studying Human Development, one must orient oneself to a broader concept, sustainable development. This includes environmental, economic and sociodemographic elements.…”