Muhammad Shahid HassanRukhsana Kalim2012-07-252012-07-252012World Applied Sciences Journal 18 (2), 196-207, 20121818-4952https://escholar.umt.edu.pk/handle/123456789/562The 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.enReal GDP per CapitaEducation ExpendituresHealth ExpendituresArticle