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Short run and long run dynamics of impact of health status on economic growth Evidence from Pakistan

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Author Info
Akram, Naeem
Abstract

The paper investigates the impacts of different health indicators on Economic growth in Pakistan. The Cointegration and Error Correction techniques were applied on the time series data of Pakistan for the period of 1972-2006. We find that Per capita GDP is positively influenced by health indicators in the long run and health indicators are having significant impact on per capita GDP. However, in the short run the health indicators fails to put significant impact on per capita GDP. It reveals that health indicators have a long run impact on economic growth. . It suggests that impact of health is only a long run phenomenon and in the short run there is no significant relationship exists between health variables and economic growth. The major policy implication of the study is that if we desire a high levels of per capita income, we can achieve it by increasing and improving the stock of health human capital, especially if current stocks are at lower end. Moreover, study also points out a rather diminutive role of public health expenditure in determining the per capita GDP.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15454.

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Date of creation: 20 May 2009
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Handle: RePEc:pra:mprapa:15454

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Related research
Keywords: Health human capital; Economic growth; Per capita GDP; Cointegration; Error Correction;

Find related papers by JEL classification:
O1 - Economic Development, Technological Change, and Growth - - Economic Development
O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
I1 - Health, Education, and Welfare - - Health

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Schultz, T. Paul, 2005. "Productive Benefits of Health: Evidence from Low-Income Countries," IZA Discussion Papers 1482, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. David N. Weil, 2005. "Accounting for the Effect of Health on Economic Growth," NBER Working Papers 11455, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Lorentzen, Peter L. & McMillan, John & Wacziarg, Romain, 2005. "Death and Development," CEPR Discussion Papers 5246, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Arora, Suchit, 2001. "Health, Human Productivity, And Long-Term Economic Growth," The Journal of Economic History, Cambridge University Press, vol. 61(03), pages 699-749, September. [Downloadable!]
  5. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May. [Downloadable!] (restricted)
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  6. Bhargava, Alok & Jamison, Dean T. & Lau, Lawrence J. & Murray, Christopher J. L., 2001. "Modeling the effects of health on economic growth," Journal of Health Economics, Elsevier, vol. 20(3), pages 423-440, May. [Downloadable!] (restricted)
  7. Gyimah-Brempong, Kwabena & Wilson, Mark, 2004. "Health human capital and economic growth in Sub-Saharan African and OECD countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 44(2), pages 296-320, May. [Downloadable!] (restricted)
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This page was last updated on 2009-11-28.

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