AN INVESTIGATION ON FACTORS AFFECTING HEALTH CARE EXPENDITURES: THE CASE OF PAKISTAN

Abstract

In order to complete this study on factors affecting health care expenditures, we collected the annual data from 1972 to 2020 in order to assess the factors affecting health care expenses. The time series data frequently have unit root problem, which is present in data utilized in this study. It was scientifically proven by Eigen value test results that there is a causal relationship between health expenditures and the factors affecting those expenses. The Johansen co-integration approach has been used to examine long-term relationship between the variables. The study's conclusion is that access to health care in Pakistan is both a need and a luxury. Health care costs in Pakistan are being significantly impacted by urbanization. The number of doctors and hospital beds per 1000 people has a beneficial impact on health care costs. People under the age of ten and those who are older are more vulnerable and are having a favorable impact on health costs. The results offered the significant information in reaching the conclusion and offering suggestions to the policy makers and future researchers.