THE IMPACT OF HEALTH OUTCOMES ON ECONOMIC GROWTH: A PANEL DATA ANALYSIS

Abstract

The health is the better predictor of economic growth then the other indicators (human capital, investments, education savings) because if the peoples are healthy, they can do investments gain education and have savings for future. The poorest countries can put resources into health intercessions that have cost and at this time have high scale impacts on individuals' health,leads to increase in productivity.This research investigates the relationship between health and economic growth by using a balanced panel of 42 economies and time ranging from 1995 to 2017. To examine the short-run association, the panel Granger causality is applied. While for the long-run relationship, the Cointegration technique is used. Dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS) are part of our analysis to check the association between health and economic growth. There is no resent study which gives clear insight the impact of health on economic in long run as well as in short run of Asian countries. The main objective of the study is to analyze the relationship between health and economic growth in Asian economies and to investigate the short run and long run impact of health on economic growth. This study has positive and statistically significant effect on per capita income male and female. Finally, this research concludes the economic performance has a significant impact on health.