The Impact of Health Indicators on Economic Growth In Pakistan

Abstract

This study aims at investigating the issues of the health sector in Pakistan and highlights the important link between health indicators and economic growth. For this purpose, the ordinary least squares method and Granger causality technique are applied to time series data of Pakistan from 1980 to 2012. Health expenditures, fertility rate, life expectancy, and infant mortality rate have been used as health indicators. The basic objective of the study is to enhance those issues in health sectors that directly or indirectly strike the economic growth of Pakistan so that effective policies can be chalked out to cope with current as well as future conditions regarding health and economic growth. The results showed that life expectancy, fertility rate, and investment in health sectors have significantly influenced the per capita GDP. Health expenditures also have a positive but insignificant impact on economic growth. Whereas there is a negative relationship between infant mortality rate and population per bed on economic growth. The major policy implication of this study is that by increasing the health facilities through increased investment in the health sector, it will improve the sustainable level of economic growth.