This paper investigates the effects of healthcare expenditure on bank deposits in a cross-
country analysis. We use government healthcare expenditure, and government and compulsory
contributions to the healthcare system as a proxy for healthcare development. The results show
a positive relationship between healthcare expenditure and bank deposits. This result is
stronger in high income countries and those with a high level of healthcare infrastructure. The
results are robust with various specifications tests, including in the COVID-19 pandemic period.
