HEALTH INVESTMENT, LABOUR PRODUCTIVITY, AND ECONOMIC GROWTH: A FINANCIAL-ECONOMIC ANALYSIS

Abstract

Health investment is increasingly recognised as a key determinant of labour productivity and sustained economic growth, as a healthier workforce tends to exhibit higher efficiency, reduced absenteeism, and stronger human capital accumulation. Despite a substantial body of existing research confirming this association, a significant gap remains in understanding the integrated financial–economic transmission mechanisms through which health investment simultaneously influences productivity outcomes and macroeconomic performance. This study therefore examines the financial–economic nexus between health investment, labour productivity, and economic growth in order to develop a more holistic and unified perspective. A qualitative research design was adopted, specifically a Systematic Literature Review (SLR) guided by the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework, covering peer-reviewed studies published from 2015 onwards. The selected literature was analysed using thematic analysis to identify recurring patterns, linkages, and conceptual relationships across studies. The findings indicate a positive yet conditional relationship between health expenditure, labour productivity, and economic growth, with outcomes strongly contingent on institutional quality, the efficiency of resource allocation, and the presence of complementary investments. The review further highlights the critical roles of financial system development, technological progress, and sustainability considerations in shaping these relationships. Overall, the evidence suggests that health investment should be treated not merely as a social expenditure but as a strategic economic policy instrument capable of supporting sustainable and inclusive economic growth when effectively managed.