FOOD SECURITY AND HEALTH EXPENDITURES: A COMPARISON OF POOR AND NON-POOR HOUSEHOLDS IN PAKISTAN

Zainab Perveen , Sadia Sherbaz  and Saira Tufail 


ABSTRACT

This study aims to assess the effect of healthcare expenditures on food expenditures in Pakistan. The main hypotheses of the study are; a) the impact of healthcare expenditure on food expenditure will be negative but insignificant without incorporating poverty; b) by incorporating poverty the aforementioned relationship will be negative and significant. Both of the hypotheses have been tested at national as well as provincial levels. For this purpose data has been collected from Household Integrated Economic Survey (HIES) (2005-06).  Using OLS as an estimation technique, it is found that first hypothesis is rejected as far as the significance of relationship between food and healthcare expenditure is concerned, and second one is accepted. Additionally, the results show the adherence to Engle’s Law. The results are consistent at both national and provincial level. Moreover, the outcomes of the study strengthen the case for free universal healthcare provision by the state.   

KEYWORDS:  Food Security, Poverty, Health Care, Engle’s Law, Health Policy