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Impact of Government Health Expenditure on Economic Growth: A Comparative Study of Selected Countries

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  • Tahir Abbas

    (Department of Mathematics, College of Sciences, University of Sharjah, Sharjah 27272, United Arab Emirates)

Abstract

The health sector is one of the prime indicators for the economic condition of countries. Its significance and impact on economic growth are frequently judged using the linear regression model and Solow model, which is a modified form of the Cobb-Douglas production function. We adopt the same models to signify the strength of the relationship between health expenditure and economic growth to determine the relationship between private, public, and total health expenditures and the economic growth of Australia, India, and Saudi Arabia. The analytical study found that a well-organized investment in total health enhances the overall economic growth of all countries. The selected time series data results show that the elasticity of public expenditure on health is quite similar for India and Saudi Arabia but different for the case of Australia. This reflects that India and Saudi Arabia, both developing countries, have not yet reached a level of income where the population can afford a high level of health care.

Suggested Citation

  • Tahir Abbas, 2025. "Impact of Government Health Expenditure on Economic Growth: A Comparative Study of Selected Countries," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(3), pages 196-208, March.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-3:p:196-208
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