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Investigating the Relationship between Health and Economic Growth: Empirical Evidence from a Panel of 5 Asian Countries

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  • Seema Narayan
  • Paresh Kumar Narayan

    ()

  • Sagarika Mishra

Abstract

In this paper, we investigate the relationship between health and economic growth through including investment, exports, imports, and research and development (R&D), for 5 Asian countries using panel unit root, panel cointegration with structural breaks and panel long-run estimator for the period 1974-2007. We model this relationship within the production function framework, and unravel two important results. First, we find that in three variants of the growth model, variables share a long-run relationship; that is, they are cointegrated. Second, we find that in the long-run, while health, investment, exports, and R&D have contributed positively to economic growth, imports have had a statistically significant negative effect while education has had an insignificant effect. We draw important policy implications from these findings.

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Paper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Economics Series with number 2010_08.

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Date of creation: 16 Jul 2010
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Handle: RePEc:dkn:econwp:eco_2010_08

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Keywords: Health; Economic Growth; Panel Unit Root; Panel Cointegration.;

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Cited by:
  1. Cooray, Arusha & Paradiso, Antonio & Truglia, Francesco Giovanni, 2013. "Do countries belonging to the same region suggest the same growth enhancing variables? Evidence from selected South Asian countries," Economic Modelling, Elsevier, vol. 33(C), pages 772-779.

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