Estimating the Relationship Between Economic Growth and Health Expenditures in the BRICS Countries Using a Panel Cointegration Approach

This study examines the impact of health expenditure on economic growth in the BRICS countries during the period 2000–2021. Economic growth is measured by GDP per capita, while per capita health expenditure serves as the principal explanatory variable. Consistent with the framework of endogenous growth theory—which conceptualizes health as a form of human capital that enhances productivity—we additionally incorporate natural capital, education, and population share as control variables. Methodologically, the analysis employs panel unit root tests under cross-sectional dependence and estimates a dynamic panel ARDL model to assess both short- and long-term effects. To further validate the robustness of the model, additional explanatory variables relevant to endogenous growth theory are also evaluated. The results indicate that, in the long run, all explanatory variables exert a statistically significant influence on the economic growth of the BRICS countries. In the short run, however, only per capita health expenditure demonstrates a positive and statistically significant effect on GDP per capita, whereas the other variables do not yield significant short-term effects.