Akram, Naeem (2009): Short run and long run dynamics of impact of health status on economic growth Evidence from Pakistan.
Download (1MB) | Preview
The paper investigates the impacts of different health indicators on Economic growth in Pakistan. The Cointegration and Error Correction techniques were applied on the time series data of Pakistan for the period of 1972-2006. We find that Per capita GDP is positively influenced by health indicators in the long run and health indicators are having significant impact on per capita GDP. However, in the short run the health indicators fails to put significant impact on per capita GDP. It reveals that health indicators have a long run impact on economic growth. . It suggests that impact of health is only a long run phenomenon and in the short run there is no significant relationship exists between health variables and economic growth. The major policy implication of the study is that if we desire a high levels of per capita income, we can achieve it by increasing and improving the stock of health human capital, especially if current stocks are at lower end. Moreover, study also points out a rather diminutive role of public health expenditure in determining the per capita GDP.
|Item Type:||MPRA Paper|
|Original Title:||Short run and long run dynamics of impact of health status on economic growth Evidence from Pakistan|
|Keywords:||Health human capital; Economic growth; Per capita GDP; Cointegration; Error Correction|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development
O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East
C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes
O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity
I - Health, Education, and Welfare > I1 - Health
|Depositing User:||Naeem Akram|
|Date Deposited:||04. Jun 2009 02:57|
|Last Modified:||20. Jan 2015 12:28|
Arora, S. (2001). "Health, Human Productivity, and Long Term Economic Growth" The Journal of Economic History , 699-749.
Barro, R. (1991). "Economic growth in a cross-section of countries" Quarterly Journal of Economics, 106(2), 403–443.
Bhargava, A., Jamison, D. T., Lau, L. J., & Murray, C. J(2001). "Modeling the effects of health on economic growth" Journal of Health Economics , 423–440.
Bloom, D. E., Canning, D., & Sevilla, J. (2004). "The Effect of Health on Economic Growth:A Production Function Approach" World Development , 1-13.
Fogel, R.W., 1994. "Economic growth, population health and physiology: the bearing of long-term processes on the making of economic policy". American Economic Review 84, 369–395
Gallup, J. L., & Sachs, J. D. (2001). "The economic burden of malaria" The American Journal of Tropical Medicine and Hygiene , 85-96.
Gyimah-Brempong, K., & Wilson, M. (2004)."Health human capital and economic growth in Sub-Saharan African and OECD countries". The Quarterly Review of Economics and Finance , 296–320.
Jamison, D. T., Lau, L. J., & Wang, J. (2003). "Health’s Contribution to Economic Growth in an Environment of Partially Endogenous Technical Progress". Disease Control Priorities Project Working Paper No. 10 .
Lorentzen, P., McMillan, J., & Wacziarg, R. (2005). "Death and development". NBER Working Paper 11620 .
Malik, G. (2005). "An Examination Of The Relationship between Health and Economic Growth". ICRIER Working Paper No. 185 .
Mankiw, N. G., Romer, D.,&Weil, D. (1992). "A contribution to the empirics of economic growth". Quarterly Journal of Economics, 407–437.
Mayer, D. (2001). "The Long term impact of health of economic growth". World Development , 1025-1031.
Preston, S.H., 1976. "Mortality Patterns in National Populations". Academic Press, New York
Romer, P. M. (1990). "Endogenous technical change". Journal of Political Economy, 71–102.
Sachs, J. D., & Warner, A. M. (1997). "Fundamental sources of long run economic growth". The American Economic Review , 183-188.
SBP Annual Reports (Various editions), State Bank of Pakistan
Scheffler, R. M. (2004). "Health Expenditure and Economic Growth:An International Perspective". Occasional Papers On Globalization, University Of South Florida .
Schultz, T. P. (2005). "Productive Benefits of Health: Evidence from Low-Income Countries". Economic growth center discussion paper No. 903 .
Tallinn. (2006). "The economic consequences of ill-health in Estonia". PRAXIS Center for Policy Studies .
Weil, D. N. (2005). "Accounting for the effect of Health on Economic Growth". NBER Working Paper No. 11455 .
World Development Report (1993), World Bank
World Development report (2007) , World Bank
World Development Indicator CD-ROM, World Bank
Zon, A. v., & Muysken, J. (2001). "Health and endogenous growth". Journal of Health Economics , 169–185.