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Research Paper | Economics | India | Volume 8 Issue 5, May 2019

Indias Vital Health Statistics and Relationship between Health Expenditure and GDP from 1996-2018

Bhoomika Doshi

Abstract: This paper posits to explain the condition of health in India, which is an Upper Middle Income Country, by explaining various parameters of Health which includes Life Expectancy at Birth, Crude Birth Rate, Crude Death Rate, Infant Mortality Rate and Maternal Mortality Rate. The paper is also intended to examine the relevance of Wagners law in the sphere of health i. e. increase in Health Expenditure as GDP increases. Inter-linkages between variables such as economic growth, GDP, public health care, health expenditure is very important to analyse the health profile of a country. However, validity for the causality relationship between health expenditure incurred by the Government and GDP of a country has not been proved yet. Access to health care services is mutilated due to socio-economic conditions prevalent in low and middle income countries, thereby leading to poor health care, and unaffordable health services. By applying econometric tools like Co-Relation Analysis, Unit Root Tests, Johansen Co integration Test, Vector Auto-Regression and VAR Granger Causality/ Block Exogenity Tests, it has been found that from 1996-2018, there has been a unidirectional Causality i. e. increase in GDP leads to increase in Health Expenditure.

Keywords: India, Health, Health Expenditure, GDP

Edition: Volume 8 Issue 5, May 2019,

Pages: 6 - 19