Re-Examining the Financial Structure and Health Nexus in Asian Economies

Abstract

The study's main purpose is to estimate the impact of the financial structure of Asian economies on the healthcare sector from 2000 to 2019. For empirical estimation, we relied on two-stage least square (2SLS) and generalized method of moment (GMM) estimation techniques. Two different proxies, infant mortality and life expectancy, were used in the analysis to represent the health status of the people. The findings of both 2SLS and GMM models confirm that improved financial structure causes life expectancy to rise and infant mortality to fall. Moreover, the increased usage of the internet also exerts a positive impact on the health status of Asians. Further, the rise in gross domestic product (GDP) and health expenditures also improve the health status of Asians by increasing their life expectancy and reducing their infant mortality rate. Improvement in financial structure causes the health status of the people to rise. Therefore, to achieve superior health status, the development of financial structure should be part and parcel of health policies and strategies in Asian economies.

Keywords: Asia economies; GDP; financial structure; health; life expectancy.