The Impact of Health Expenditure on Economic Growth: A Case Study of Pakistan

Abstract

A financial crunch has been a continual factor throughout  the history of Pakistan. Hence, Pakistan has been restricted to the  expenditure of limited resources on growth. Most governments have a  better cushioned to allocate for growth, especially on human capital  because of less resources, side by side rising defense and surviving  expenditure. The study is based on a skillful inquiry of health on  economic growth in Pakistan.  Time series data for the period 1971 to  2016 has been obtained while; ARDL co-integration technique has  been applied. Economic growth is influenced and brought about,  directly by Health indicators in the long run as well as in the short run.  This shows that health has far-reaching effects on economic growth.  Moreover, education spending by the government is also improving  economic activities as it enhances the quality of human resources.  Inflation is also positively related to economic growth of Pakistan.  According to the major policy implications, a steep level of growth can  be obtained by enhancing and making better the stock of human  capital; particularly, if available stocks are going to exhaust. In  addition, the policy indicates a tiny act of expenses on public health  inconclusive economic growth.