Objective - The possibility of healthcare expenditure and education expenditure are becoming a thought-provoking issue for numerous governments globally, in spite of the fact that healthcare is unique and vital rudiments of well-being. On the other hand, education is the strength and spinal column of ground-breaking thoughts. Nevertheless, with an ageing population and ballooning protracted health difficulties, the preservation of the quality of life demands improved healthcare and education expenditure on the part of government. However, this study scrutinizes the effect of healthcare expenditure and education expenditure on labour productivity using Organization of Islamic Cooperation (OIC) countries as a case study.

Methodology/Technique - The research utilized pooled-panel data method with data from 1990 to 2015.

Findings - The result of the findings shows that there is the statistical significant relationship between healthcare expenditure, education expenditure and labour productivity in OIC countries.

Novelty - Research suggests that healthcare and education is a mechanism to stimulate the productivity of labour in OIC countries.

Type of Paper: Empirical

Keywords: Education Expenditure; Healthcare Expenditure; Labour Productivity; OIC Countries.

JEL Classification: H51, H52, J24.