Education, Health, And Economic Growth: A Review Of Theoretical And Empirical Models And Their Applicability To Bulgaria

This paper provides a systematic review and methodological synthesis of the theoretical and empirical approaches used to analyse the relationship between education, health, and economic growth. The focus is on the main macroeconomic frameworks employed in the literature – growth regressions, extended neoclassical models, endogenous growth models, production functions with human capital, time-series approaches, and dynamic panel models – as well as on the indicators used to measure both the quantity and quality of human capital. The review shows that, despite substantial differences in model specifications and data, there is a broad consensus regarding the importance of human capital for long-run economic growth. At the same time, empirical findings are highly sensitive to the choice of indicators, particularly in the case of education, where quality based measures (cognitive skills) exhibit a more robust association with growth than quantity-based measures. The analysis also highlights the central role of endogeneity, reverse causality, and heterogeneity across social and demographic groups in shaping empirical results. Building on these insights, the paper proposes a coherent methodological framework for the empirical analysis of education, health, and economic growth in the context of Bulgaria and the European Union. It argues for combining national time-series models with dynamic panel analyses at the EU level, alongside careful indicator selection and identification strategies. Rather than offering specific policy prescriptions, the paper aims to support future empirical research and a more informed assessment of the role of human capital in long-term economic development.