The triangular causality among education, health and economic growth: a time series analysis of Pakistan
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Date
2012
Authors
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Publisher
IDOSI Publications
Abstract
The study scrutinizes the existence of long run association and triangular causality among real GDP
per capita, per capita education expenditures and per capita health expenditures in Pakistan. The present study
applies Ng - Perron test to investigate stationarity, ARDL bounds testing approach to examine the existence
of long run relationship and Granger Causality test for estimating short run, long run and combined short run
and long run triangular causality among the variables for the time series data of Pakistan from 1972 - 2009. The
present study exposes that there exists long run relationship among real GDP per capita, per capita education
expenditures and per capita health expenditures in Pakistan. There exists bidirectional relationship between per
capita real GDP and per capita education expenditures in the short run, whereas per capita health expenditures
and real GDP per capita do not granger cause each other in short run in Pakistan. Also, there exits bidirectional
granger causality among real GDP per capita, per capita education expenditures and per capita health
expenditures in long run in Pakistan. The present study also confirms the existence of joint causality among
real GDP per capita, per capita education expenditures and per capita health expenditures in both short run and
long run in Pakistan.
Description
Keywords
Real GDP per Capita, Education Expenditures, Health Expenditures
Citation
World Applied Sciences Journal 18 (2), 196-207, 2012