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An Examination of the Relationship between Health and Economic Growth

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  • Garima Malik

    (Indian Council for Research on International Economic Relations)

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    Abstract

    This paper attempts to examine the relationship between health and economic growth. The rate of growth is measured using gross national income (GNI) and health status is measured using infant mortality rate, life expectancy rate and crude health rate. The above relationships are measured using a multivariate framework controlling for other background variables. Thus we have modelled the macroeconomic impact of health. A theoretical framework has been developed to model this linkage between health and growth and this is further tested using a regression model which tests the causality between these variables of interest. These models are tested using pooled data. We have also assumed in this analysis that these variables are affected by state-specific unobservable fixed effects, since there are other cultural, political and social factors at work here.

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    Bibliographic Info

    Paper provided by East Asian Bureau of Economic Research in its series Macroeconomics Working Papers with number 22173.

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    Date of creation: Jan 2006
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    Handle: RePEc:eab:macroe:22173

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    Related research

    Keywords: health; economic growth;

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    1. Angus Deaton, 2002. "Health, inequality, and economic development," Working Papers 209, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    2. Bloom, David E. & Mahal, Ajay S., 1997. "Does the AIDS epidemic threaten economic growth?," Journal of Econometrics, Elsevier, vol. 77(1), pages 105-124, March.
    3. David N. Weil, 2007. "Accounting for The Effect of Health on Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 1265-1306, 08.
    4. Ahuja, Rajeev & Jutting, Johannes Paul, 2003. "Design Of Incentives In Community Based Health Insurance Schemes," Discussion Papers 18744, University of Bonn, Center for Development Research (ZEF).
    5. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
    6. Martin, Philippe & Rogers, Carol Ann, 1997. "Stabilization Policy, Learning-by-Doing, and Economic Growth," Oxford Economic Papers, Oxford University Press, vol. 49(2), pages 152-66, April.
    7. Angus Deaton, 2004. "Health in an age of globalization," Working Papers 172, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    8. Nazmul Chaudhury & Jeffrey Hammer & Michael Kremer & Karthik Muralidharan & F. Halsey Rogers, 2006. "Missing in Action: Teacher and Health Worker Absence in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 91-116, Winter.
    9. Das, Jishnu & Hammer, Jeffrey, 2007. "Money for nothing: The dire straits of medical practice in Delhi, India," Journal of Development Economics, Elsevier, vol. 83(1), pages 1-36, May.
    10. Xavier Sala-I-Martin, 1997. "Transfers, Social Safety Nets, and Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 44(1), pages 81-102, March.
    11. Abigail Barr, 1995. "The missing factor: entrepreneurial networks, enterprises and economic growth in Ghana," CSAE Working Paper Series 1995-11, Centre for the Study of African Economies, University of Oxford.
    12. Markus Haacker, 2002. "Modeling the Macroeconomic Impact of HIV/AIDS," IMF Working Papers 02/195, International Monetary Fund.
    13. Das, Jishnu & Hammer, Jeffrey, 2005. "Which doctor? Combining vignettes and item response to measure clinical competence," Journal of Development Economics, Elsevier, vol. 78(2), pages 348-383, December.
    14. Markus Haacker, 2002. "The Economic Consequences of HIV/AIDS in Southern Africa," IMF Working Papers 02/38, International Monetary Fund.
    15. Rao, Vijayendra & Gupta, Indrani & Jana, Smarajit, 2000. "Sex workers and the cost of safe sex - the compensating differential for condom use in Calcutta," Policy Research Working Paper Series 2334, The World Bank.
    16. David E. Bloom & David Canning & Jaypee Sevilla, 2001. "The Effect of Health on Economic Growth: Theory and Evidence," NBER Working Papers 8587, National Bureau of Economic Research, Inc.
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