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Health, Economic Development, and Poverty in Developing Countries

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  • Dao, Minh Quang

    ()
    (Eastern Illinois University)

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    Abstract

    This paper investigates the impact of health on the extent of poverty and on economic development in developing countries. Based on data from the World Bank and the United Nations Development Programme and using a sample of seventy-nine developing economies, we find that the fraction of the population below the poverty line is linearly dependent upon the GDP growth rate, the share of income or consumption by the lowest quintile of the population, and male life expectancy at birth used as a proxy for the possible effect of improved health. Using another sample of sixty-two developing countries, we find that purchasing power parity per capita income linearly depends on the total fertility rate, labor force participation, child illness and malnutrition, gross capital formation, and access to natural resources and the global economy as proxied by per capita arable and permanent cropland and by external balance of goods and services as a percentage of GDP. Statistical results of such empirical examination will assist governments in developing countries identify health care areas that need to be improved upon in order to alleviate poverty and foster economic development.

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    Bibliographic Info

    Article provided by Camera di Commercio di Genova in its journal Economia Internazionale / International Economics.

    Volume (Year): 62 (2009)
    Issue (Month): 2 ()
    Pages: 163-174

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    Handle: RePEc:ris:ecoint:0008

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    Keywords: Poverty Line; Child Malnutrition; Maternal Mortality; Income Inequality; Infant Mortality; Developing Countries;

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    1. Bhargava, Alok & Jamison, Dean T. & Lau, Lawrence J. & Murray, Christopher J. L., 2001. "Modeling the effects of health on economic growth," Journal of Health Economics, Elsevier, vol. 20(3), pages 423-440, May.
    2. David E. Bloom & David Canning & Jocelyn E. Finlay, 2008. "Demographic Change and Economic Growth in Asia," PGDA Working Papers 4108, Program on the Global Demography of Aging.
    3. Thomas, Duncan & Strauss, John, 1997. "Health and wages: Evidence on men and women in urban Brazil," Journal of Econometrics, Elsevier, vol. 77(1), pages 159-185, March.
    4. Daron Acemoglu & Simon Johnson, 2006. "Disease and Development: The Effect of Life Expectancy on Economic Growth," NBER Working Papers 12269, National Bureau of Economic Research, Inc.
    5. Don Webber, 2002. "Policies to stimulate growth: should we invest in health or education?," Applied Economics, Taylor & Francis Journals, vol. 34(13), pages 1633-1643.
    6. Arora, Suchit, 2001. "Health, Human Productivity, And Long-Term Economic Growth," The Journal of Economic History, Cambridge University Press, vol. 61(03), pages 699-749, September.
    7. David Bloom & David Canning, 2003. "The Health and Poverty of Nations: From theory to practice," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 4(1), pages 47-71.
    8. Bloom, David E. & Canning, David & Sevilla, Jaypee, 2004. "The Effect of Health on Economic Growth: A Production Function Approach," World Development, Elsevier, vol. 32(1), pages 1-13, January.
    9. Knowles, Stephen & Owen, P Dorian, 1997. "Education and Health in an Effective-Labour Empirical Growth Model," The Economic Record, The Economic Society of Australia, vol. 73(223), pages 314-28, December.
    10. Robert William Fogel, 1990. "The Conquest of High Mortality and Hunger in Europe and America: Timing and Mechanisms," NBER Historical Working Papers 0016, National Bureau of Economic Research, Inc.
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