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Trade openness and child health: a heterogeneous panel cointegration analysis

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  • Jan Dithmer
  • Awudu Abdulai

Abstract

In this paper, we examine the impact of trade openness on child health, based on a cross-country panel data set covering 66 countries for the period 1960–2013. To account for the time-series properties of the data and potential cross-country heterogeneity in the impact of trade openness, the study employs heterogeneous panel cointegration techniques that are robust to omitted variables and endogeneity problems. The results reveal that trade openness and child health are cointegrated, and that trade works to reduce the child mortality rate significantly in the long-run. The results are robust to the methodology and trade openness and child health indicators employed, as well as to the presence of cross-sectional dependence and changes in the sample composition. The findings also suggest that the impact of trade on child health tends to be stronger in countries with better institutional quality, lower corruption, good governance, political stability, and sound policies that promote private sector development.

Suggested Citation

  • Jan Dithmer & Awudu Abdulai, 2020. "Trade openness and child health: a heterogeneous panel cointegration analysis," Applied Economics, Taylor & Francis Journals, vol. 52(23), pages 2508-2525, May.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:23:p:2508-2525
    DOI: 10.1080/00036846.2019.1693018
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    Cited by:

    1. Marta Marson & Donatella Saccone & Elena Vallino, 2023. "Total trade, cereals trade and undernourishment: new empirical evidence for developing countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(2), pages 299-332, May.
    2. Ayona Bhattacharjee & Rupa Chanda, 2023. "Trade in health products and population health: A long‐run relation," The World Economy, Wiley Blackwell, vol. 46(1), pages 182-207, January.

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