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Public spending on education, health care and economic growth in selected countries of Asia and the Pacific

Author

Listed:
  • Biswajit Maitra

    () (Assistant Professor of Economics, Surya Sen College, West Bengal, India)

  • C.K. Mukhopadhyay

    () (Professor (retired), Department of Economics, University of North Bengal, West Bengal, India)

Abstract

In this paper the role of public spending on the education and health sectors is examined with regard to promoting the gross domestic product (GDP) of 12 countries in Asia and the Pacific over the last three decades. In six of those countries, namely Bangladesh, Kiribati, Malaysia, Maldives, the Philippines and the Republic of Korea, Johansen cointegration tests confirmed the existence of cointegrating relations. In the remaining countries, namely Fiji, Nepal, Singapore, Sri Lanka, Tonga and Vanuatu, cointegrating relations were absent. The causal impact of education and health-care spending on GDP was further examined in the study. Education spending was found to have raised GDP in Bangladesh, Fiji, Kiribati, Maldives, Nepal, Singapore, Sri Lanka, Tonga and Vanuatu. On the other hand, health-care spending contributed to GDP growth in Bangladesh, Nepal, the Philippines, Singapore and Sri Lanka. In the Philippines spending on education had a negative impact on GDP, while in Kiribati, Maldives and Vanuatu, the impact of health-care spending on GDP was found to be negative. In the case of Malaysia and the Republic of Korea, neither education spending nor health-care spending exhibited an appreciable impact on GDP. It was also found that the gestation lag of education spending was longer than that of health-care spending.

Suggested Citation

  • Biswajit Maitra & C.K. Mukhopadhyay, 2012. "Public spending on education, health care and economic growth in selected countries of Asia and the Pacific," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 19(2), pages 19-48, December.
  • Handle: RePEc:unt:jnapdj:v:19:y:2012:i:2:p:19-48
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Nadide Sevil Halıcı-Tülüce & İbrahim Doğan & Cüneyt Dumrul, 2016. "Is income relevant for health expenditure and economic growth nexus?," International Journal of Health Economics and Management, Springer, vol. 16(1), pages 23-49, March.
    2. Akhmat, Ghulam & Zaman, Khalid & Shukui, Tan & Javed, Yasir & Khan, Muhammad Mushtaq, 2014. "Relationship between educational indicators and research outcomes in a panel of top twenty nations: Windows of opportunity," Journal of Informetrics, Elsevier, vol. 8(2), pages 349-361.
    3. T. Vinayagathasan & S. Vijesandiran, 2015. "Dynamic Relationship between Human Capital and Economic Growth in Sri Lanka: A Co-Integration Analysis," Growth, Asian Online Journal Publishing Group, vol. 2(2), pages 20-29.
    4. Fatima Boussalem & Zina Boussalem & Abdelaziz Taiba, 2014. "The Relationship between public spending on health and economic growth in Algeria: Testing for Cointegration and Causality," Proceedings of International Academic Conferences 0101004, International Institute of Social and Economic Sciences.
    5. João Sousa Andrade & Marta Simões & Adelaide Duarte, 2013. "Despesa Pública em Educação e Saúde e Crescimento Económico: Um Contributo para o Debate sobre as Funções Sociais do Estado," GEMF Working Papers 2013-18, GEMF, Faculty of Economics, University of Coimbra.

    More about this item

    Keywords

    Education spending; endogenous growth theory; health-care spending; gross domestic product.;

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

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