Public Sector Efficiency in Delivering Social Services and Its Impact on Human Development: A Comparative Study of Healthcare and Education Spending in India, Pakistan, and Bangladesh

Abstract: The research investigates the effects of public spending on health and education in shaping the human development in south Asian three countries: India, Pakistan and Bangladesh. The study uses the VAR (Vector Auto regression) model to estimate the effects on government spending on these sectors to evaluate the human development. The findings state that there are different degrees of impact in these three countries. In Bangladesh and India, health spending increases the human development in short term. On the other hand education spending shows the significance on the HDI.Moreover, the study also highlights that there are different levels of effectiveness of government spending across these three countries. In order to maximize the human development an optimum country specific strategies should be adopted.