Determinants of Healthcare Expenditure on Human Capital and Economic Growth in Bangladesh: A Longitudinal Data Analysis from 1995-2010

The objective of this study was to examine the determinants of healthcare expenditure in Bangladesh between 1995 and 2010 by applying the World development indicator data. First, I developed an empirical model for longitudinal data analysis to determinant the healthcare expenditure under the hum an capital and economic growth. Next , I explored the dynamic relationships among healthcare expenditure, human capital and economic growth using OLS model. The expenditure in private healthcare was 2.3% and 1.2 % GDP for the public health in 2010 . A Wald statistic determined the joint significance of the data and R ² = 99.42% for human capital and R ² = 99.44% for economic growth indicates this model was the best fit. The empirical results concerned that healthcare expenditure GDP per capita plays an important role in economic growth and an income elastici ty about 0.34 that implies healthcares are not luxury good in the Bangladesh.