Impact of Health Expenditures on Economic Growth in Selected South and East Asian Countries

Abdul Hameed, Tariq Mahmood Ali, Talah Numan Khan, Sidra Ishfaq and Ayesha Khan
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Abdul Hameed: Health Services Academy, Islamabad
Tariq Mahmood Ali: Health Services Academy, Islamabad
Talah Numan Khan: Forman Christian College, Lahore
Sidra Ishfaq: Health Services Academy, Islamabad
Ayesha Khan: Health Services Academy, Islamabad

Journal of Economic Sciences, 2025, vol. 4, issue 1, 147-164

Abstract: Efficient and equitable health spending is crucial for achieving universal health coverage and promoting health and well-being for all. This study aims to examine the impact of health expenditures on economic growth in selected South Asian (India, Pakistan, Sri Lanka, and Bangladesh) and East Asian (China, Japan, Korea, and Malaysia) countries and analyze the long-run association between health expenditures and economic growth. The data has been retrieved from the World Development Indicators for the years 2000-2021. The econometric techniques (panel Ordinary Least Square (OLS), Fully Modified OLS, and Dynamic OLS) have been applied to examine the association between healthcare expenditures and economic growth. The results show that in both sets of nations, a long-run association exists between health expenditures and economic growth. South Asian countries show a unidirectional causality between health expenditures and economic growth, whereas East Asian countries do not exhibit any causal relation between the two variables. Health expenditures have a positive and significant impact on economic growth in South Asian countries. The association between health spending and economic growth is insignificant in East Asian countries. The study presents some thought-provoking ideas, policy recommendations, and implications for policymakers, planners and researchers, especially in the context of developing economies.

Keywords: Health expenditure; Human capital; Economic growth; South-East Asian Nations (search for similar items in EconPapers)
JEL-codes: I15 J24 O47 O53 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:azm:journl:v:4:y:2025:i:1:p:147-164

DOI: 10.55603/jes.v4i1.a9

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