TARU PUBLICATIONS
Journal of Information and Optimization Sciences cover
Hybrid ·Peer-reviewed·ISSN (Online): 2169-0103·ISSN (Print): 0252-2667

WoS  JIF 2026 : 0.4 (Q4)

Powered by:Powered by

Monthly Journal: Publishes theoretical and applied research on topics in information and optimization sciences.

Issues up to 2022 co-published with and available at:Taylor & Francis
submissions@tarupublications.com
Open Access Research Article

Testing the long run relation between health investments and economic growth in India

, * , , ,

* Corresponding author · click or hover a name for details

pp. 2533–2543Vol. 46Issue 8November 2025DOI: 10.47974/JIOS-2077XML
Received:
12 Feb 2025
Published Online:
29 Nov 2025
Article type:
Research Article
Language:
EN
Article no.:
JIOS-2077
Pages:
2533–2543

Abstract

The current study investigates the validity of health led growth hypothesis in India by checking the existence of relationship between health investments and economic growth. For the purpose, data on healthcare expenditures of both private and public sectors were collected for a period of 1980 to 2020 along with the GDP data for the same time period. An ARDL model was used to check for the relationship. Findings suggest that private healthcare investments have insignificant impact on growth while public healthcare has a significant positive impact on the growth, suggesting the importance of prioritising healthcare investment to foster economic progress.

Keywords

Subject Classifications

62J0562G08

References

[1] E. Atilgan, D. Kilic, and H. M. Ertugrul, “The dynamic relationship between health expenditure and economic growth: Is the health-led growth hypothesis valid for Turkey?” Eur. J. Health Econ., vol. 18, no. 5, pp. 567–574 (2017).
[2] B. H. Baltagi and F. Moscone, “Health care expenditure and income in the OECD reconsidered: Evidence from panel data,” Econ. Model., vol. 27, no. 4, pp. 804–811 (2010).
[3] R. Bhat and N. Jain, “Analysis of public and private healthcare expenditures,” Econ. Polit. Wkly., vol. 41, no. 1, pp. 57–68 (2006).
[4] A. Bhattacharjee, J. K. Shin, C. Subramanian, and S. Swaminathan, “Healthcare investment and income inequality,” J. Health Econ., vol. 56, pp. 163–177 (2017).
[5] D. E. Bloom, D. Canning, and J. Sevilla, “The effect of health on economic growth: A production function approach,” World Dev., vol. 32, no. 1, pp. 1–13 (2004).
[6] M. Farag, A. K. Nandakumar, S. Wallack, D. Hodgkin, G. Gaumer, and C. Erbil, “Health expenditures, health outcomes and the role of good governance,” Int. J. Health Care Finance Econ., vol. 13, no. 1, pp. 33–52 (2013).
[7] U.-G. Gerdtham and M. Löthgren, “On stationarity and cointegration of international health expenditure and GDP,” J. Health Econ., vol. 19, no. 4, pp. 461–475 (2000).
[8] P. Hansen and A. King, “The determinants of health care expenditure: A cointegration approach,” J. Health Econ., vol. 15, no. 1, pp. 127–137 (1996).
[9] J. Hartwig, “Is health capital formation good for long-term economic growth? – Panel Granger-causality evidence for OECD countries,” J. Macroecon., vol. 32, no. 1, pp. 314–325 (2010).
[10] T. Hitiris and J. Posnett, “The determinants and effects of health expenditure in developed countries,” J. Health Econ., vol. 11, no. 2, pp. 173–181 (1992).
[11] H. Kiymaz, Y. Akbulut, and A. Demir, “Tests of stationarity and cointegration of health care expenditure and gross domestic product: An application to Turkey,” Eur. J. Health Econ., vol. 7, no. 4, pp. 285–289 (2006).

Views: 150Downloads: 70Citations: 0