Health Expenditure, education and Economic Growth in MENA Countries

This study examines the relationship between health expenditure, education and economic growth in MENA countries using panel data estimation. Our results based on random effect estimation endorse a relationship between health expenditure, education and economic growth. Data were obtained from the World Bank Development Indicators for the period of 1995 to 2010 for 20 countries from Middle East and North Africa region. Importantly, our results reveal that health expenditure and education have significantly positive effect on economic growth. Also gross fixed capital formation positively, but insignificantly, related to economic growth of MENA countries. Therefore, investment in human capital, namely health and education, will increase income in these countries.