How Urbanization and Economic Growth affects the Health in  East Asian Countries? Evidence from the VECM approach

Authors

Urban Population, GDP, Health, Johanson Fisher Panel Co-Integration, Vector error correction model, Panel Data

The study targets to explore the answer to the question whether there exists any association between urban

populations, GDP in East Asian countries and how does it affect the health of public. This research study

analyses this concept using panel data of six East Asian countries China, Hong Kong Korea, Japan, Macao

and Mongolia. The study has used World Bank indicators to fetch the data for the variables urban population

and GDP for the time period 1990-2018. First of all, stationarity of the variables is checked by applying

LLC, IP, ADF and PP unit root tests. Further, with the help of JFPC and VECM, the co-integration between

these variables is checked. Hence, the results indicate that urban population and GDP in East Asian countries

are related to each other in long run. The study could not found any short run co integration between

variables. But increasing urbanization in these countries is also developing sustainable challenges in these

countries. Thus, urbanization in East Asian countries is acting like a double edged sword. The relationship

between urbanization and health varies for different levels of development. Thus the countries with high rate

of urbanization need to develop such programs which can spur economic growth as well as environment

sustainability in those countries.

Ramanpreet KAUR1 , TushinderPreet KAUR2

1 Research Scholar, Lovely Professional University, Phagwara, 2 Professor, Lovely Professional University, Phagwara