Economic Development Analysis Journal
Vol 10 No 2 (2021): Economics Development Analysis Journal

The Impact of Health on Per Capita GDP in Indonesia

Vita Kartika Sari (UNS)
Malik Cahyadin (Unknown)



Article Info

Publish Date
09 May 2021

Abstract

The purpose of this study was to estimate the influence of health on per capita GDP in Indonesia in 1986-2018. Health was proxied by three variables including health expenditure, infant mortality rate and life expectancy. The variables expressed a significant indicator to assess health level in a country. Furthermore, the estimation was carried out in the short-run and long-run based on the ARDL-ECM model. The results showed that the feasible ARDL model was ARDL (2, 0, 0, 0). In long-run, per capita GDP was significantly influenced by health expenditure, infant mortality rate and life expectancy. This expressed significant implication of the health level for increasing the economic performance and welfare in Indonesia. Meanwhile, in short-run, it was only influenced by infant mortality rate and (ECT (-1)). Further, Cusum and CusumQ tests showed the empirical model was stable. The policy implication directs that the government can improve the quality of public health, increase health expenditure as a fiscal stimulus, and support increasing public income.

Copyrights © 2021






Journal Info

Abbrev

edaj

Publisher

Subject

Economics, Econometrics & Finance

Description

Focus and Scope Economic Development Analysis Journal is a scientific journal who published by Department of Economic Development, Faculty of Economics, Universitas Negeri Semarang, Indonesia. this journal published four times per year on February, May, August, and November and start publishing ...