THE RELATIONSHIP BETWEEN HEALTH DEVELOPMENT INDEX AND FINANCIAL DEVELOPMENT INDEX: EVIDENCE FROM HIGH INCOME COUNTRIES

Economic growth is a complex process affected by many factors at different levels which is commonly proxied by health. In this study, the causal between health and financial development is investegated using heteregenuis panel causality test over the period 1991-2014. To this end, Principal component analysis is initially applied to construct indexes for each variable. Results show that health development indexgranger causes financial development index.   Ekonomik buyume, saglik degiskeni tarafindan sikca rastlanan farkli seviyelerde bircok faktorden etkilenen karmasik bir surectir. Bu calismada, saglik ve finansal degiskenler arasindaki nedensellik iliskisi 1991-2014 yillari boyunca panel nedensellik testi kullanilarak arastirilmistir. Bu amacla, temel bilesenler analizi degiskenlerden dizinler elde etmek icin baslangicta uygulanmistir. Sonuclar, saglik gelisme endeksinin finansal gelisme endeksinin granger nedeni oldugunu gostermektedir.