This study aims to examine the issues in the health sector in Pakistan and emphasize the critical link between health signals and economic growth. For this purpose, the standard least square method and Granger Causality technique are practiced on time series data of Pakistan from 1980- to 2012. In addition, health expense life expectancy, fertility rate, and infant mortality rate have been used as health indicators.
The study’s main objective is to better those issues in health sectors that directly and indirectly strike on the economic growth of Pakistan.
The result showed that life expectancy, fertility rate, and expense on health sectors have specifically influenced the per capita GDP.
Health expenditures also have a positive but specific impact on economic growth. However, there is a negative relationship between mortality rate /population per bed on economic growth. Therefore, the significant policy implication of this study is that increasing the health facilities through expanding the investment in the health sector will better the defendable level of economic growth.
We evaluate a production function model of total economic growth and two variables that macroeconomists have identified as fundamental components of human capital work experience and health. Our essential result is that good health has a positive, sizable, and statistically significant effect on the whole output even when we control for the experience of the workforce. We contend that the life hopes to affect growth regressions appear to be a real labor productivity effect and are not the result of life hope acting as a deputy for worker experience.
Health is a direct source of human welfare and an instrument for increasing income levels. The author discusses several ways health can affect income, children’s education, saving, and investment, focusing on worker productivity and demographic structure.
Along with ongoing illness, health affects future life periods and life cycle behavior.
Studies implied there might be a significant effect on health.
The importance of the health aspect of development and economic prosperity of individuals and nations is increasingly being recognized in the world.
Indeed, healthy laborers are not physically and mentally more effective and strong, meaning suffering lower debility and disability.
There will be a minimum chance of absenteeism from work due to poor health conditions directly and indirectly.
Poor health conditions decrease hourly wages substantially.
Health in the form of life expectancy has been shown in many cross-country growth declines, and researchers generally find that it has an important positive effect on the rate of economic growth.
The identity of historical findings suggests a firm contact between health and economic growth.
