Estimating the Health Production Function: A National-Level Study of Bangladesh

Health is a fundamental human right and a crucial determinant of human capital formation, exerting a significant influence on economic growth and development. This study empirically examines the health production function at the national level in Bangladesh, using 50 years (1975-2024) of secondary data from the Bangladesh Bureau of Statistics and the World Bank. A multiple regression model is applied to identify the critical determinants of health status, with Ordinary Least Squares (OLS) estimation. Since this study uses time-series data, it applies diagnostic tests for stationarity, multicollinearity, and autocorrelation before estimating the OLS model. The results reveal that literacy rate, employment rate, access to safe drinking water, availability of physicians, and per capita health expenditure are positively associated with life expectancy at birth, a measure of the health status of people at the national level. Conversely, the poverty headcount ratio demonstrates a negative relation with life expectancy. The findings highlight the importance of adopting a comprehensive policy framework to improve public health outcomes. Providing quality education, integrating health awareness campaigns, and implementing targeted healthcare subsidies are crucial steps toward improving the national health status. Given the relationship between health status and economic progress, a strategic focus on inclusive healthcare policies and equitable resource allocation is imperative for fostering sustainable development in Bangladesh.