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Does Health Accelerate Economic Growth in Pakistan?

Author

Listed:
  • Khattak, Naeem Ur Rehman

    (Dean, Faculty of Social Sciences, University of Peshawar, Pakistan)

  • Khan, Jangraiz

    (Ph. D Scholar, Department of Economics,University of Peshawar, Pakistan.)

Abstract

This paper has been designed to investigate whether health accelerate economic growth in Pakistan. The study is using Growth Accounting Method, Ordinary Least Squares and Johansen Cointegration Test as analytical techniques. The Results show that Total Factor Productivity, Capital and health contributed 46.61%, 43.15% and 2.61% to growth rate of GDP per capita during 1971-2008. The Ordinary Least Squares results showed health, labour and Research and Development as the significant determinants of economic growth in Pakistan. The results further indicate that real GDP per capita, R&D, education and health institutions affect heath in Pakistan. The Cointegration test results confirmed the existence of long run relationship between health and economic growth. Therefore, the study concludes that health accelerates economic growth in Pakistan and this relationship also exists in long run. The study suggests increase in public expenditure on health and R&D. It is also suggests further research on the determinants of Total Factor Productivity

Suggested Citation

  • Khattak, Naeem Ur Rehman & Khan, Jangraiz, 2012. "Does Health Accelerate Economic Growth in Pakistan?," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 2(4), pages 506-512.
    • Handle: RePEc:asi:ijoass:v:2:y:2012:i:4:p:506-512:id:2225
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    Cited by:

    1. Abdul Wahab, Abdul Azeez Oluwanisola & Kefeli, Zurina & Hashim, Nurhazirah, 2018. "Investigating The Dynamic Effect of Healthcare Expenditure and Education Expenditure On Economic Growth in Organisation of Islamic Countries (OIC)," MPRA Paper 90338, University Library of Munich, Germany, revised 19 Oct 2018.
    2. Sher Bano, 2018. "The Impact Of Health Outcomes On Economic Growth: A Panel Data Analysis," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 4(1), pages 1-22, June.

    More about this item

    Keywords

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    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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