Health Status, Government Health Expenditure and Economic Growth Nexus in India: A Toda–Yamamoto Causality Approach

Abstract

This article attempts to examine the causal linkage among government health expenditure, health status and economic growth in India for the period from 1981–1982 to 2015–2016. The results of Johansen co-integration test indicate that government health expenditure, health status and economic growth have long-run relationship in India. The results of Toda–Yamamoto causality test showed that there existed unidirectional causal relationship running from government health expenditure to gross domestic product—GDP (economic growth); GDP (economic growth) to life expectancy; government health expenditure to infant mortality rate and infant mortality rate to life expectancy. On the other hand, there is no evidence showing causality in any direction between infant mortality rate to GDP (economic growth) and government health expenditure to life expectancy. The study strongly confirmed that the government health expenditure has an effect on GDP (economic growth) and infant mortality rate (which depicts health status) in India. The health outcomes, namely life expectancy and infant mortality rare, reveal unidirectional causality between them. Therefore, the study concludes that policymakers and the government should pay proper attention to the health sector in order to ultimately achieve economic growth in the country.

Government Health Expenditure and Public Health Outcomes: A Comparative Study among EU Developing Countries

“…It is recognized that research reveals mixed results related to government spending on health but leans toward positive outcomes from increased public spending [13][14][15]. There are two common approaches used to determine the implication of government spending on public health outcomes.…”

Dampak Health Capital Terhadap Pertumbuhan Ekonomi: Pembuktian Dari Negara Terpilih Di Asia Tenggara Dengan Pendekatan Model Autoregressive Distributed Lag (Ardl)

“…Dampak kesehatan terhadap pertumbuhan ekonomi pada suatu negara serta hubungan antara kesehatan masyarakat dengan pertumbuhan ekonomi telah menjadi perhatian yang sangat serius bagi pembuat kebijakan maupun peneliti (Kaur, 2020). Hal tersebut semakin terlihat ketika pandemic Covid-19 melanda dunia, berdasarkan laporan World Economic Outlook yang diterbitkan oleh IMF pada tahun 2021, pertumbuhan ekonomi secara global turun -3.2% pada tahun 2020 (Sarıışık & Usta, 2021).…”

“…Salah satu indikator health capital sebuah negara yang berperan penting terhadap pertumbuhan ekonomi adalah health expenditure (Canbay & Kırca, 2022). Hubungan antara pertumbuhan ekonomi dan pengeluaran terhadap kesehatan (public/private) dan dampaknya terhadap sektor kesehatan telah menjadi subjek penelitian dan perdebatan yang penting dalam beberapa tahun terakhir (Abdulqadir et al, 2022;Canbay & Kırca, 2022;Esen & Çelik Keçili, 2022;Kaur, 2020;Matahir et al, 2022;Mohapatra, 2017;Naidu & Chand, 2013;Pereira et al, 2019;Sethi et al, 2020;Wang, 2015).…”

“…Hasil temuan ini konsisten dengan teori pertumbuhan endogen hasil dari pengembangan oleh (Romer, 1990) dan (Mankiw Gregory et al, 1992) yang menegaskan bahwa pengeluaran pada sektor pendidikan dan kesehatan terkait dengan human capital dan mengarah pada kemajuan endogen secara teknis, mengakselerasi pertumbuhan ekonomi, meningkatkan sumber daya manusia dan peningkatan total output. Hasil penelitian ini juga konsisten dengan hasil dari penelitian sebelumnya (Akinbode et al, 2021;Esen & Çelik Keçili, 2022;Isreal Akingba et al, 2018;Jayadevan, 2021;Kaur, 2020;Mohapatra, 2017;Naidu & Chand, 2013;Rosendo Silva et al, 2018;Sarpong et al, 2020;Sethi et al, 2020;Wang, 2015;Ying et al, 2022;Zarzycki & Malaczewski, 2020) yang menyimpulkan bahwa health capital dalam bentuk health care expenditure maupun total health expenditure per capita mempunyai pengaruh yang positif dan signifikan terhadap pertumbuhan ekonomi.…”

Pattern of Public Healthcare Expenditure and Preparedness for COVID-19 in India: An Interstate Analysis

“…Empirical work by Rahman (2008), Bhat and Jain (2006), Hooda (2015), Behera and Dash (2017) were few attempts towards evaluating the relationship of GDP and health care expenditure in Indian context. With the objective of evaluating the relationship between PEH, health status and economic growth in India for the period from 1981-1982-2016, Kaur (2020 confirmed that the GDP of the country was having unidirectional association with government expenditure in health care. While examining the impact of GDP on healthcare expenditure in Italy during 1982-2009, Fedeli (2015 showed empirical evidence in support of Wagner's law suggesting as income rises, people will choose relatively more healthcare expenditure.…”