IDEAS home Printed from
   My bibliography  Save this article

Health Expenditures, Institutional Quality and Economic Growth


  • Rizvi, Syeda Anum Fatima

    () (PhD Scholar, Development Economics, Universite Clermont Auvergne, Clermont Ferrand, France)


The study aims to determine the effect of health expenditures on economic growth while taking into account the quality of health institutions, keeping in view the fact that it’s not just the level, rather quality of expenditures or institutions that matters. Our hypothesis was where institutions are better health investment in health brings more economic growth as compared to those with low quality institutions. To attain that objective the standard neoclassical Solow Growth Model at steady-state level was taken as theoretical framework and made a production function adding institutional quality proxied by government effectiveness along with other variables like health expenditure, primary education completion rate, population growth etc. For estimation purposes, data for the sample of 20 South, East Asian and Pacific developing countries was used for the period 1995-2017. It was found that if health expenditures adjusted for the quality of government expenditures increase by 100%, then the economic growth will increase by 5%.

Suggested Citation

  • Rizvi, Syeda Anum Fatima, 2019. "Health Expenditures, Institutional Quality and Economic Growth," Empirical Economic Review, University of Management and Technology, Lahore, vol. 2(1), pages 63-82.
  • Handle: RePEc:ris:empecr:0013

    Download full text from publisher

    File URL:
    File Function: Full text
    Download Restriction: no

    More about this item


    Economic Growth; Government Effectiveness; Health Expenditures; Institutional Quality;

    JEL classification:

    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:empecr:0013. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sidra Raza). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.