The Relationship between Health Expenditures and Foreign Direct Investment: Analysis of the ARDL Cointegration Approach and Toda-Yamamoto Causality

The health sector comprises lots of themes which are health expenditures, health investments, the pharmaceutical and medical equipment industries, and health tourism. Health investments are often closely related to foreign direct investments. The priority motivation of foreign direct investments in field of health is humanistic development in other words, promoting human health. Investing in the health sector is difficult and carries inherent risks, despite the various contributions of FDI to a country’s economy. The conneciton between health expenditures in GDP, FDI in GDP, service trade volume in GDP and the number of doctors has been examined for Turkey with ARDL analysis between 1975 and 2019. Obtaining results show a long-term correlation among the variables for analysis period.