Determinants of Health Expenditures: A Case of High Populated Asian Countries

Abstract

This study investigates the determinants of health expenditure in high-populated Asian countries, focusing on Pakistan and India, as well as the short and long-term effects of health expenditure on economic growth. The main objectives are as; to identify the determinants of health expenditure in Pakistan and India, and to analyze the short-run determinants of health expenditure on economic growth in high-populated Asian countries. Panel data from 2001 to 2019 sourced from the World Development Indicator (WDI) is utilized. The study employs various variables, including health expenditure, population, urban population, unemployment, GDP growth, and school enrollment. Estimations are conducted using the Autoregressive Distributed Lag (ARDL) approach. Findings reveal a significant long-run relationship between health expenditure and population, GDP growth, school enrollment, and unemployment across Asian countries, while the urban population exhibits insignificance. In the short run, population and school enrollment demonstrate a significant relationship with health expenditure, whereas urban population, unemployment, and GDP growth exhibit insignificance. These findings contribute to understanding the dynamics of health expenditure and its impact on economic growth in high-populated Asian countries, informing policymakers on effective strategies for healthcare investment and economic development.