Public Health as a Catalyst for Economic Growth: Insights from South Asia

Objective: This paper explores the relationship between public health spending and economic growth in South Asia, within the broader context of international financial dynamics. The core objective is to examine how the independent variable, public health expenditures, influences economic growth and prosperity across South Asian countries. Method: Employing panel data from seven South Asian countries spanning the period from 1993 to 2022, the study analyzes variables such as life expectancy, infant mortality, and labor force, with GDP per capita used as the dependent variable to measure economic growth. To estimate this impact, the study utilizes unit root tests, error correction models, heteroscedasticity LM tests, and the ARDL (Auto-Regressive Distributed Lag) model for both short-run and long-run analysis. Results: The results reveal a strong positive association between GDP per capita and public health spending, underscoring the pivotal role of health investment in fostering economic growth amidst evolving international financial markets. Furthermore, the study highlights the intricate link between public health and global financial stability, shedding light on the indirect effects of increased health spending on foreign direct investment (FDI), currency fluctuations, and international capital flows. Recommendation: These findings offer policymakers critical insights for crafting effective public health strategies that not only improve population well-being but also enhance financial resilience and competitiveness in the global economic arena.