Does Health Accelerate Economic Growth in Pakistan?

Khattak Naeem Ur Rehman and Jangraiz Khan

MPRA Paper from University Library of Munich, Germany

Abstract: This paper has been designed to investigate whether health accelerate economic growth in Pakistan. The study is using Growth Accounting Method, Ordinary Least Squares and Johansen Cointegration Test as analytical techniques. The Growth Accounting Method shows that Total Factor Productivity, Capital and health contributed 46.61%, 43.15% and 2.61% to growth rate of GDP per capita during 1971-2008. The Ordinary Least Squares results showed health, labour and Research and Development as the significant determinants of economic growth in Pakistan. The results further indicate that real GDP per capita, R&D, education and health institutions affect heath in Pakistan. The Cointegration test results confirmed the existence of long run relation ship between health and economic growth. Therefore, the study concludes that health accelerates economic growth in Pakistan and this relationship also exists in long run. The study suggests increase in public expenditure on health and R&D. It is also suggests further research on the determinants of Total Factor Productivity

Keywords: Health; Economic Growth; Growth Accounting; Ordinary Least Squares; Pakistan (search for similar items in EconPapers)
JEL-codes: O15 (search for similar items in EconPapers)
Date: 2012, Revised 2012
New Economics Papers: this item is included in nep-fdg and nep-hea
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Citations: View citations in EconPapers (2)

Published in International Journal of Asian Social Science 4.2(2012): pp. 506-512

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