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The Long Term Impact of Health on Economic Growth in Pakistan

Author

Listed:
  • Naeem Akram

    (Federal Urdu University of Arts Sciences and Technology, Islamabad.)

  • Ihtsham ul Haq Padda

    (Federal Urdu University of Arts Sciences and Technology, Islamabad.)

  • Mohammad Khan

    (Federal Urdu University of Arts Sciences and Technology, Islamabad.)

Abstract

The paper investigates the impacts of different health indicators on economic growth in Pakistan. Cointegration and Error Correction techniques have been 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 cause per capita GDP. However, in short run the health indicators fail to put significant impact on per capita GDP. It reveals that health indicators have a long run impact on economic growth. It also 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 high levels of per capita income, we can achieve it by increasing and improving stock of health human capital, especially when 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.

Suggested Citation

  • Naeem Akram & Ihtsham ul Haq Padda & Mohammad Khan, 2008. "The Long Term Impact of Health on Economic Growth in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(4), pages 487-500.
  • Handle: RePEc:pid:journl:v:47:y:2008:i:4:p:487-500
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    Citations

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    Cited by:

    1. Dahar, Muhammad Arshad & Iqbal, Muhammad Zafar & Dahar, Rashida Ahmad, 2009. "Impact of the per pupil expenditures on the student achievement at secondary stage in Punjab (Pakistan)," MPRA Paper 19844, University Library of Munich, Germany.
    2. Habib Nawaz Khan & Muhammad Arshad Khan & Radzuan B. Razli & Afz’a Binti Sahfie & Gulap Shehzada & Katrina Lane Krebs & Nasrin Sarvghad, 2016. "Health Care Expenditure and Economic Growth in SAARC Countries (1995–2012): A Panel Causality Analysis," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 11(3), pages 639-661, September.
    3. Syed Ammad Ali & Qazi Masood Ahmed & Lubna Naz, 2016. "Public spending on human capital formation and economic growth in Pakistan," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 23(1), pages 1-20, June.
    4. Ahsan, Henna & Idrees, Dr Muhammad, 2014. "Impact of Health on Earnings: Individual and District Level Analysis for Pakistan," MPRA Paper 56769, University Library of Munich, Germany, revised 20 Jun 2014.
    5. Ihtsham Padda, 2014. "On minimizing the welfare cost of fiscal policy: evidence from South Asia," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1553-1572, May.
    6. Hameed, Abdul & Padda, Ihtsham ul Haq & Dahar, Muhammad Arshad, 2017. "Micro-Supply Capacity Assessment and Quality of Education for the Public Sector Schools in Punjab (Pakistan)," MPRA Paper 85020, University Library of Munich, Germany.
    7. Serdar Ozturk & Ebru Topcu, 2014. "Health Expendıtures and Economıc Growth: Evıdence from G8 Countries," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(6), pages 256-261, June.
    8. Dahar, Muhammad Arshad & Dahar, Rashida Ahmad & Dahar, Riffat Tahira, 2009. "Mis-allocation of student teacher ratio, class size and per student expenditure leads to the wastage of school resource inputs and lower academic achievement: an issue of resource management," MPRA Paper 27835, University Library of Munich, Germany.
    9. repec:pje:journl:article10iv is not listed on IDEAS
    10. Nilgun Yavuz & Veli Yilanci & Zehra Ozturk, 2013. "Is health care a luxury or a necessity or both? Evidence from Turkey," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(1), pages 5-10, February.

    More about this item

    Keywords

    Health Human Capital; Economic Growth; Cointegration; Error Correction;

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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