In recent years, Human Development Index (HDI) is one of the most crucial indeces used to measure the level of development of countries. The aim of this study is to investigate the effects of education and health expenditures, which are the most fundamental components of human capital on HDI. We analyze the HDI, total education expenditures as % of Gross Domestic Product (GDP) and total health expenditure as % of GDP data annually for the period between 1990 and 2017. Analysis results show that there is a unidirectional causality towards education and health expenditures from HDI and from education expenditures to health expenditures. While the impact of a standard deviation shock of education expenditures on the HDI is generally negative, the effect of a standard deviation shock of health expenditures is positive. Moreover, while 99% of the change in the HDI is explained by itself in the first period, results differ for the last period. Accordingly, 72% of the change in this variable is explained by itself, 21% by health expenditures and 7% by education expenditures.