The Impact of Health Indicators on Economic Growth In Pakistan

Abstract

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