GASPRO International Journal of Eminent Scholars

ABSTRACT

This empirical study examines the relationship between macroeconomic performance and US health sector spending from 1990 to 2022. Using an autoregressive distributed lag model, the study examines the dynamic relationships between real gross domestic product (RGDP) and healthcare spending (CHEXP). Finding the complex effects of healthcare investments on the larger economic environment is the main goal. The information demonstrates a robust correlation between RGDP and healthcare spending. Compared to an RGDP gain of 0.004638 units, healthcare spending has grown by one unit, with an estimated 0.004638 CHEXP coefficient. At the 5% significance level, the data statistically support the economic importance and favourable effect of healthcare spending on the nation's GDP (Prob. = 0.0337). In the research's dynamic analysis, the autoregressive distributed lag model approach is used to take into consideration both the short- and long-term impacts of healthcare spending on RGDP. Together with an assessment of the macroeconomic effect, the report provides a comprehensive examination of changes in US health sector expenditure during the last three decades. In summary, empirical data indicates that spending on healthcare improves the macroeconomic stability of the US economy. Decision-makers eager to enhance resource allocation for long-term economic development may find this research's more nuanced perspective on the financial returns on investments in the health sector useful. To fully achieve the potential of the health business as a catalyst for economic advancement, cautious investment guidance is necessary.

KEYWORDS: Investment, Health sectors, Macroeconomic, Performance and Empirical Investigation.