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Economic development and health outcomes: Evidence from cardiovascular disease mortality in Europe

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  • Spiteri, Jonathan
  • von Brockdorff, Philip

Abstract

The impact of economic growth on health outcomes has generated various conflicting results in recent years, particularly with the emergence of cardiovascular disease as one of the most salient global health issues. This paper looks at the relationship between economic development and health outcomes. We first estimate an empirical model using data on annual cardiovascular disease mortality in a panel of 27 European countries, over the period 2003 to 2014, together with per capita GDP levels in each country. We also include a number of additional determinants of health outcomes as prescribed by the literature, including various socio-economic, lifestyle and contextual variables. The results show that there is a statistically-significant inverted U-shaped relationship, whereby as income increases mortality rates first rise, before declining at subsequent levels of development. This trajectory persists even after the inclusion of the other determinants of health, as well as other robustness checks. We then seek to explain the persistence of the inverted U-shaped income-mortality relationship using a microeconomic model of consumer choice, with our findings suggesting that this relationship is consistent with a scenario of increasing returns to scale from healthcare investment. The results emphasise the importance of investment in the latest healthcare technologies and continued improvements to public healthcare systems, particularly within developing countries, in conjunction with efforts to boost economic growth.

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  • Spiteri, Jonathan & von Brockdorff, Philip, 2019. "Economic development and health outcomes: Evidence from cardiovascular disease mortality in Europe," Social Science & Medicine, Elsevier, vol. 224(C), pages 37-44.
    • Handle: RePEc:eee:socmed:v:224:y:2019:i:c:p:37-44
    DOI: 10.1016/j.socscimed.2019.01.050
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    5. Ebeh, Joy Eleojo & Awe, Abel, Ariyo, 2021. "Does Poverty Matters in Maternal Health and Output Growth Nexus in sub-Saharan African Countries? A Panel ARDL Approach," Noble International Journal of Economics and Financial Research, Noble Academic Publsiher, vol. 6(6), pages 119-130, December.
    6. Ye Fan & Ming Fang & Xin Zhang & Yongda Yu, 2023. "Will the economic growth benefit public health? Health vulnerability, urbanization and COVID-19 in the USA," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(1), pages 81-99, February.
    7. Forshaw, Rachel & Kharadi, Natalya & McLaughlin, Eoin, 2023. "Cardiovascular Disease Mortality and Non-Particulate Air Pollution: Evidence from the 20th Century," Accountancy, Economics, and Finance Working Papers 2023-01, Heriot-Watt University, Department of Accountancy, Economics, and Finance.
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