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Policies to Stimulate Growth: Should We Invest in Health or Education?

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Webber, Don J

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Abstract

Empirical studies in the literature on economic growth have focused on the affect of education and yet Knowles and Owen (1995, 1997) found health, proxied by life expectancy, to be highly statistically significant with education having a modest role. This study extends their model and employs variables that are more conducive to policy formulation: calorific intake and school enrolment ratios. Results suggest that reducing undernutrition would only make a modest contribution to economic growth while increasing enrolment ratios, especially secondary, has a positive and more significant effect. Policies to increase economic growth should favour investments in education over health. Copyright 2002 by Taylor and Francis Group

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Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 34 (2002)
Issue (Month): 13 (September)
Pages: 1633-43
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Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1633-43

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  1. Hongbin Li & Xianguo Yao & Junsen Zhang & Li-An Zhou, 2005. "Parental childcare and children's educational attainment: evidence from China," Applied Economics, Taylor and Francis Journals, vol. 37(18), pages 2067-2076, October. [Downloadable!] (restricted)
  2. Agenor, Pierre-Richard, 2003. "The mini-integrated macroeconomic model for poverty analysis : a framework for analyzing the unemployment and poverty effects of fiscal and labor market reforms," Policy Research Working Paper Series 3067, The World Bank. [Downloadable!]
  3. Jochen Hartwig, 2008. "Has health capital formation cured ‘Baumol’s Disease’? – Panel Granger causality evidence for OECD countries," KOF Working papers 08-206, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
  4. Agenor, Pierre-Richard & Moreno-Dodson, Blanca, 2006. "Public infrastructure and growth : new channels and policy implications," Policy Research Working Paper Series 4064, The World Bank. [Downloadable!]
  5. Matthew Cole & Eric Neumayer, 2006. "The impact of poor health on total factor productivity," The Journal of Development Studies, Taylor and Francis Journals, vol. 42(6), pages 918-938, August. [Downloadable!] (restricted)
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  6. Paresh Kumar Narayan, 2007. "Do health expenditures 'catch-up'? Evidence from OECD countries," Health Economics, John Wiley & Sons, Ltd., vol. 16(10), pages 993-1008. [Downloadable!]
  7. Zon ,Adriaan,van & Muysken ,Joan, 2003. "Health as a Principal Determinant of Economic Growth," Research Memoranda 024, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
  8. Jocelyn E. Finlay, 2007. "The Role of Health in Economic Development," PGDA Working Papers 2107, Program on the Global Demography of Aging. [Downloadable!]
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