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Impact of Health Expenditures on Economic Growth in Selected South and East Asian Countries

Author

Listed:
  • Abdul Hameed

    (Health Services Academy, Islamabad)

  • Tariq Mahmood Ali

    (Health Services Academy, Islamabad)

  • Talah Numan Khan

    (Forman Christian College, Lahore)

  • Sidra Ishfaq

    (Health Services Academy, Islamabad)

  • Ayesha Khan

    (Health Services Academy, Islamabad)

Abstract

Efficient and equitable health spending is crucial for achieving universal health coverage and promoting health and well-being for all. This study aims to examine the impact of health expenditures on economic growth in selected South Asian (India, Pakistan, Sri Lanka, and Bangladesh) and East Asian (China, Japan, Korea, and Malaysia) countries and analyze the long-run association between health expenditures and economic growth. The data has been retrieved from the World Development Indicators for the years 2000-2021. The econometric techniques (panel Ordinary Least Square (OLS), Fully Modified OLS, and Dynamic OLS) have been applied to examine the association between healthcare expenditures and economic growth. The results show that in both sets of nations, a long-run association exists between health expenditures and economic growth. South Asian countries show a unidirectional causality between health expenditures and economic growth, whereas East Asian countries do not exhibit any causal relation between the two variables. Health expenditures have a positive and significant impact on economic growth in South Asian countries. The association between health spending and economic growth is insignificant in East Asian countries. The study presents some thought-provoking ideas, policy recommendations, and implications for policymakers, planners and researchers, especially in the context of developing economies.

Suggested Citation

  • Abdul Hameed & Tariq Mahmood Ali & Talah Numan Khan & Sidra Ishfaq & Ayesha Khan, 2025. "Impact of Health Expenditures on Economic Growth in Selected South and East Asian Countries," Journal of Economic Sciences, Federal Urdu University Islamabad, Department of Economics, vol. 4(1), pages 147-164, June.
    • Handle: RePEc:azm:journl:v:4:y:2025:i:1:p:147-164
    DOI: 10.55603/jes.v4i1.a9
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    References listed on IDEAS

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    1. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
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    More about this item

    Keywords

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    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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