Expenditure On Education And Health As A Determinant Of Economic Growth In Hungary: VAR Approach

English

Abstract

This research was conducted to describe, analyze, and explore the correlation and influence between government expenditure on education, current health expenditure, and growth of economic in Hungary. We use secondary data sourced from the World Bank as a reference with a range from 2000 to 2021. Variables used are government expenditure on education, current health expenditure, and GDP growth as the implementation of economic growth which is then analyzed using the quantitative VAR. The results of this study indicate that increased economic growth is positively correlated with government spending on education. Meanwhile, economic growth has a negative relationship to current health spending. This result can be a reference that the Hungarian government can continue to implement positive policies that have been implemented to allocate government spending for education so that optimal results are maintained. In addition, the Hungarian government needs to make policies that support spending in the health sector so that it has a beneficial impact on growth of economic. Another way is to periodically check the quality of health services, and so on is also important so that health can make a full positive contribution to economic growth for sustainable development.