Testing Club Convergence in Health Outcomes in Pakistan during 2004-2020
Abstract
Over the last three decades, club convergence study has emerged as a major area of interest in the research on economic growth and development. Gross Domestic Product (GDP) per capita is commonly used as a substitute for assessing the level of national well-being in research on the convergence of living standards between different regions. The analysis relies on an enhanced health index using the convergence and clustering technique suggested by Phillips and Sul (2007). The index consists of five health indicators. The indicators are combined using principal component analysis (PCA) to obtain a final health index. In summary, the study's findings refute the idea that all districts of Pakistan reach a single equilibrium condition in terms of the health index. Upon testing club convergence, it was found that there were four convergence clubs. The data indicate that there are variations in health outcomes among different districts, highlighting the need for policies that aim to reduce these geographical disparities.
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