Monetary Policy, Health Expenditure and Human Development: Empirical Evidence from Asian Countries

Abstract

It has been observed that monetary variables and health expenditure enhance human development. We have tried to show the effect of money supply, interest rate, and health expenditures and exports on human development of Asian countries. Data has been used from 2000 to 2024 to check this dependent and independent variables relationship.  Human development index was used as dependent variable. On the other hand, money supply, interest rate, health expenditure and exports were taken as independent variables. We have also used OLS regression in this research. The study finding showed that money supply has increased human development. However, interest rate seems to be affecting negatively the human development. Foreign direct investment also has enhanced human development. Finally, exports also contribute positively towards human development. It is suggested that focus should be made more on financial stability of Asian countries. Government should emphasize on the stability of money supply and interest rate to have more development. There is a dire need to allocate more finances towards health in these economies. More incentives should be given to improve more exports and human development.