Author(s): Azhar Jan, Meenakshi Gupta and Sheikh Aftaab-Ul-Maroof
Purpose: The research aims to find out the directional relationship among the investment variables, economic growth, and health expenditure. Design/methodology/approach: The current study employs Pairwise Dumitrescu-Hurlin Panel Causality Tests for understanding this relationship between the said variables. Findings: The findings show a bidirectional causal relationship between labor force participation and economic growth while a unidirectional relationship between Economic growth and Domestic government health care expenditure (EG & DGHE); Economic growth and Gross fixed capital formation (EG& GFCF); Economic growth and Institutional quality index (EG & IQI); Domestic government health care expenditure and Institutional quality Index (DGHE & IQI); Labor force and Domestic government health care expenditure (LF & DGHE); Life expectancy and Domestic government health care expenditure (LE & DGHE); Life expectancy and Gross fixed capital formation (LE & GFCF); Life expectancy and institutional quality index (LE & IQI). Originality/value: The findings of this study will enable the policymakers of South Asian Economies to prioritize their investments based on the identified relationship.