Do Government Expenditures on Education and Health Lead Toward Economic Growth? Evidence from Pakistan

  • Syeda Azra Batool BZ
  • Shazia Kousar, Shazia Kousar Assistant Professor, The S
  • Syeda Shahida Batool, Syeda Shahida Batool Professor & Chair P
  • Mahwish Zafar, Mahwish Zafar Assistant Professor, The S
Keywords: Keywords: Education expenditure, health expenditure, GDP, fixed effect, random effect.


Education and health facilities are the most important factors that derive a county toward prosperity. Hence the aim of the study was two-fold that covered the investigation of the impact of both education expenditures and public health expenditures on GDP growth rate in Pakistan. The data on modeled variables, GDP, population, Inflation, public health expenditures, private health expenditures, government education expenditures, were taken from the World Development Indicators (WDI) and economic survey of Pakistan over the period of 1998-2018. The Unit Root Test declared all the modeled variables stationary at level, so Ordinary Least Squares multiple regression analysis was utilized to evaluate the impact of education and health expenditures on GDP. The outcomes of the study showed that the impact of private health expenditures, population, and inflation on GDP were found insignificant. Whereas the impact of both education expenditures and public health expenditures on GDP turned out to be positive. It was hereby suggested to government and policy makers to allocate more resources to both education and health sectors to meet the goal of high economic growth in the country.