Abstract Purpose This study explores the impact of health capital on economic growth, employing an ARDL model with data from 2000 to 2022. The aim is to assess the contribution of health capital, alongside other key macroeconomic variables, to the economic performance of the country. Findings The results show that health capital plays a significant positive role in economic growth, with improvements in health contributing to higher productivity and overall economic development. Education expenditure, however, exhibits a negative long-term impact, suggesting inefficiencies in public spending. Gross fixed capital formation and trade openness emerge as key drivers of economic growth, reinforcing the importance of investment in infrastructure and global integration. The findings also highlight the importance of maintaining macroeconomic stability to ensure sustained growth. Implications Policymakers should prioritize investments in health capital while improving the efficiency of public education spending. The results further emphasize the role of physical capital accumulation and trade openness in supporting economic growth, alongside the need for sound fiscal and monetary policies to maintain macroeconomic stability. Originality/value This study provides country-specific evidence on the role of health capital in long-term economic growth by integrating health, education, and key macroeconomic variables within a unified ARDL framework. The findings offer valuable insights for policymakers in Bangladesh and other emerging economies seeking to balance growth acceleration with economic stability.
Khan et al. (Wed,) studied this question.