Assessing the Influence of Public Health on Population Welfare: A Focus on Developing Countries

During the 1980s and 1990s, the majority of developing countries successfully implemented social security programs. To guarantee the enduring viability of these recently implemented systems, it is imperative to meticulously observe the economic ramifications. This study aims to analyze the influence of public health policies on population welfare using panel data from developing countries spanning from 2000 to 2021. The study applies Two-Stage Least Square (2SLS) estimation techniques of panel data, instrumented by Age Dependency Ratio to solve the potential endogeneity problems between public health and population welfare. Results indicate a strong positive and long-run correlation between public health and population welfare. Put simply, the research found that higher public health expenditure plays a significant role in determining the population welfare in developing countries over the long term. Conclusion the concept of growth driven by improvements in health in developing countries is validated.