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The impact of poor health on total factor productivity

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  • Matthew Cole
  • Eric Neumayer

Abstract

A number of recent studies have illustrated the link between health and economic growth. This paper argues that a key mechanism through which health affects growth is via total factor productivity (TFP). We first estimate TFP based on a production function and then estimate the determinants of TFP, paying particular attention to three indicators of health that are particularly problematic in developing regions: malnutrition, malaria and water borne diseases. We find the impact of poor health on TFP to be negative, significant, and robust across a wide variety of specifications.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00220380600774681
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 42 (2006)
Issue (Month): 6 ()
Pages: 918-938

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Handle: RePEc:taf:jdevst:v:42:y:2006:i:6:p:918-938

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Citations

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Cited by:
  1. Allen, Summer L. & Badiane, Ousmane & Ulimwengu, John M., 2012. "Government expenditures, social outcomes, and marginal productivity of agricultural inputs: a case study for Tanzania," IFPRI discussion papers 1172, International Food Policy Research Institute (IFPRI).
  2. Nicholas Apergis & Puja Padhi, 2013. "Health expenses and economic growth: convergence dynamics across the Indian States," International Journal of Health Care Finance and Economics, Springer, vol. 13(3), pages 261-277, December.
  3. Pierre-Richard Agenor & Koray Alper, 2009. "Monetary Shocks and Central Bank Liquidity with Credit Market Imperfections," Working Papers 0906, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
  4. Betty Agnani & Henry Aray, . "Testing for Political Effects on Total Factor Productivity," ThE Papers 09/13, Department of Economic Theory and Economic History of the University of Granada..
  5. Zheng, Xinye & Wang, Jing & Li, Xilu & Yu, Yihua, 2013. "On the supply of China's healthcare resources in a decentralized healthcare system," MPRA Paper 56030, University Library of Munich, Germany.
  6. Paul A. Raschky & Manijeh Schwindt, . "Aid, Catastrophes and the Samaritan's Dilemma," Working Papers 2008-06, Faculty of Economics and Statistics, University of Innsbruck.
  7. Martine Audibert & Pascale Combes Motel & Alassane Drabo, 2013. "Health capital depreciation effects on development: theory and measurement," Working Papers halshs-00832877, HAL.
  8. Nicholas Apergis, 2013. "Health Expenses: Evidence from the Club Clustering Approach," International Advances in Economic Research, Springer, vol. 19(4), pages 399-407, November.
  9. Zhigang Feng, 2009. "Macroeconomic Consequences of Alternative Reforms to the Health Insurance System in the U.S," Working Papers 0908, University of Miami, Department of Economics.
  10. Alemu, Zerihun Gudeta & Roe, Terry L. & Smith, Rodney B.W., 2005. "The Impact of HIV on Total Factor Productivity," Bulletins 12976, University of Minnesota, Economic Development Center.

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