Literature Review Akram et al. (2008) study using time series data of Pakistan for 1972_2006 employing co integration technique and found that health indicators have positive impact on economic growth in long run.
But in short run, it did not give any significant results. Fogel (1994) examined in his study that approximately one third GDP of Britain between 1790 and 1980 is because of improvements in health and such improvements are regarded as labor expanding technique.Acemoglu and Johnson (2007) utilized predicted mortality to find relationship between life expectancy and GDP and found that 1 % rise in mortality rate results in 1.
7% rise in population. And they concluded that there is no increase in GDP as a result of increase in mortality rate.Gill (2012) concluded from his study of panel data for 2000 and 2010 that 1 year improvement in life expectancy leads to 5 to 10% increase in GDP. That is life expectancy at birth is positively related to economic growth.
Bloom, canning and Sevilla (2007) emphasized on two important variables of human capital i.e. education and health. They concluded that there is significant relation between them and economic growth.
Arora (2002) observed the impact of health on economic growth using ten highly developed nations’ data of 100 to 125 years. She concluded that 30 to 40% expansion in economic growth resulting of change in health. Boachie and kofi (2015) in his article, using life expectancy at birth as an indicator of health and ARDL bound teat, showed that both in long run and short run, economic growth is significantly influenced by health. But in short run there is not much effects of health.Across and within countries, economic growth is highly correlated with health which is indicated by life expectancy at birth and other indicators.
But with the passage of time, cross country health differences has largely paralleled the evolution of income differences, with the exception that in the last half century convergence of health was much faster than convergence of income David Weil (2014).Shahid (2014) in his article showed that short run ad long run relationship between labor force participation rate, capital and economic growth. He collected time series data from the years 1980 to 2012. Utilitizing Johansen cointegration test, he concluded that there is long run relationship between variables.
And the VECM test showed that economic growth has has negative and insignificant impact while capital has positive and significant and labor has negative significant impact in short run.Ali and Abdullah (2015) examined in his study employing ARDL, concluded that there exist positive impact of trade liberalization on economic growth of Pakistan. But the results in the long run showed that negative relation between liberalization of trade and economic growth.
Moyo and Kolisi and khobai (2017) conducted a study in order to investigate the impact of trade openness on economic growth for the countries Ghana and Nigeria using the time period in 1980 to 2016. Exchange rates, investment and inflation are included as the additional variables. They employed Auto Regressive distributed lag model (ARDL) to analyze the long run relationship. Their study revealed a long run impact of trade openness on economic growth for both countries. In Ghana, trade openness has a positive and significant impact on economic growth but in Nigeria, it has negative and insignificant impact on economic growth.