The Long Term Impact of Health on Economic Growth in Pakistan

Naeem Akram, Ihtsham Ul Haq Padda, Mohammad Khan


Human capital plays pivotal role for sustainable economic
Growth. As different growth theories suggest the role of human capital
as a significant for growth process. The concept of human capital in
economic literature defined broadly by including education, health,
training, migration, and other investments that enhance an individual’s
productivity. However, the growth economists that have incorporated
human capital in the growth studies, paid greater attention on analysing
the impact of education on economic growth, while ignoring the role of
health human capital. It is only in very recent times that studies have
started looking at health and tried to estimate the relationship between
health status and economic growth. There exists a two-way relationship
between improved health and economic growth. Health and other forms of
human and physical capital increases the per capita GDP by increasing
productivity of existing resources coupled with resource accumulation
and technical change. Furthermore, some part of this increased income is
spent on investment in human capital, which results in further per
capita growth. According to Fogel (1994), approximately one third of GDP
of Britain between 1790 and 1980 is the outcome of improvements in
health especially improvement in nutrition, public health, and medical
care facilities and these improved health facilities should be
considered as labour enhancing technical change.

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