*4.2.2 Model 2 estimation results*

**Table 7** reports the results of estimating Eq. (3) using the VECM approach. The results show that government expenditure on health has a long run positive impact on economic growth that is significant at 10% level of significance.


*Notes: lnGDP is the natural logarithm of Gross Domestic Product, lnRev is the natural logarithm of Oil & Gas Revenue, lnExp is the natural logarithm of Total Expenditure and ECT is the error correction term. Numbers between brackets are std. errors.*

*\*, \*\*, \*\*\* present 10%, 5% and 1% level of significance, respectively.*

#### **Table 6.** *VECM results – Model 1.*

#### *The Reform in Government Expenditure and the Standard of Living in Bahrain DOI: http://dx.doi.org/10.5772/intechopen.98249*


*Notes: lnGDP is the natural logarithm of Gross Domestic Product, lnH-Exp is the natural logarithm of Ministry of Health Expenditure and ECT is the error correction term. Numbers between brackets are std. errors. \*, \*\*, \*\*\* present 10%, 5% and 1% level of significance, respectively.*

#### **Table 7.**

*VECM results – Model 2.*


*Notes: lnGDP is the natural logarithm of Gross Domestic Product, lnE-Exp is the natural logarithm of Ministry of Education Expenditure and ECT is the error correction term. Numbers between brackets are std. errors. \*, \*\*, \*\*\* present 10%, 5% and 1% level of significance, respectively.*

#### **Table 8.**

*VECM results – Model 3.*
