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The Long Term Impact of Health on Economic Growth in Pakistan

  • 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.)

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.

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File URL: http://www.pide.org.pk/pdf/PDR/2008/Volume4/487-500.pdf
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Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 47 (2008)
Issue (Month): 4 ()
Pages: 487–500

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Handle: RePEc:pid:journl:v:47:y:2008:i:4:p:487-500
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