Modeling The Dynamics Of Healthcare And Economic Growth Nexus In India: An Ardl Approach

Abstract

This Paper Empirically Investigates The Relationship Between Health Expenditures, Health Outcomes, And Economic Growth In India Using Data From The World Bank From1990-2023in A Time Series Regression Framework. Employing The Autoregressive Distributed Lag Model To Assess Both Short- And Long-run Dynamics. The Empirical Analysis Begins With Unit Root Testing Using The Dickey-Fuller Test. The ARDL Model Estimates Reveal A Strong Positive Impact Of Health Expenditure And Life Expectancy On Economic Growth, Highlighting The Significance Of Healthcare Investment In Enhancing Economic Performance. Gross Capital Formation Also Demonstrates A Significant Positive Effect. The ARDL Bounds Test Confirms A Long-run Relationship Among The Variables. Diagnostic Tests, Including Heteroscedasticity And Serial Correlation Checks, Confirm The Model’s Robustness. Stability Verification Through CUSUM And CUSUMSQ Tests Further Supports The Reliability Of The Results. The Findings Underscore The Critical Role Of Health-related Investments In Driving Economic Development, Providing Policy Implications For Strengthening Healthcare Infrastructure To Sustain Long-term Economic Growth In India.

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