DETERMINANTS OF HEALTHCARE EXPENDITURE ON HUMAN CAPITAL AND ECONOMIC GROWTH IN BANGLADESH: A LONGITUDINAL DATA ANALYSIS FROM 1995-2010
The objective of this study was to examine the determinants of healthcare expenditure in Bangladesh between 1995 and 2010 by
applying the World development indicator data. First, I developed an empirical model for longitudinal data analysis to determinant the
healthcare expenditure under the human capital and economic growth. Next, I explored the dynamic relationships among healthcare
expenditure, human capital and economic growth usingOLSmodel. The expenditure in private healthcare was 2.3% and 1.2% GDP
for the public health in 2010. A Wald statistic determined the joint significance of the data andR2= 99.42%for human capital andR2=
99.44% for economic growth indicates thismodel was the best fit. The empirical results concerned that healthcare expenditure GDP
per capita plays an important role in economic growth and an income elasticity about 0.34 that implies healthcares are not luxury good
in the Bangladesh.
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