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HEALTH, EDUCATION AND ECONOMIC GROWTH: TESTING FOR LONG-RUN RELATIONSHIPS AND CAUSAL LINKS in the United States

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  • Aka, Bédia F.
  • Dumont, J.C.

Abstract

This paper examines the causal relationships between human capital (Education, and Health) and Economic growth for the USA using time series approach for the period 1929-1997. We find cointegration between the variables under study. The EC-VAR investigations show bi-directional causality between Education and Health. Causality also exists from Education to Economic growth. On the other hand, causality is found between Health and Economic growth and not the reverse. We therefore perform variance decomposition and impulse response functions to see the importance of the impacts among these variables. The results show that the long-run dynamics of growth are slightly explained by past health and education level, and the health level account for 10% of the evolution of education in the long run.

Suggested Citation

  • Aka, Bédia F. & Dumont, J.C., 2008. "HEALTH, EDUCATION AND ECONOMIC GROWTH: TESTING FOR LONG-RUN RELATIONSHIPS AND CAUSAL LINKS in the United States," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(2), pages 101-110.
    • Handle: RePEc:eaa:aeinde:v:8:y:2008:i:2_8
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    Cited by:

    1. Abla A. H. Bokhari, 2017. "Human Capital Investment and Economic Growth in Saudi Arabia: Error Correction Model," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 104-112.
    2. Shiao-Yen Liu & Po-Chin Wu & Tsai-Yuan Huang, 2018. "Nonlinear Causality between Education and Health: the Role of Human Development Index," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 13(3), pages 761-777, September.
    3. Nicholas M. Odhiambo, 2020. "Education and economic growth in South Africa: an empirical investigation," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 48(1), pages 1-16, November.
    4. Atif Awad, 2021. "Which Contributes More to Economic Growth in the MENA Region: Health or Education? An Empirical Investigation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1119-1133, September.
    5. Katharina Schley, 2018. "Health care service provision in Europe and regional diversity: a stochastic metafrontier approach," Health Economics Review, Springer, vol. 8(1), pages 1-11, December.
    6. Roseline Tapuwa Karambakuwa & Ronney Ncwadi & Andrew Phiri, 2020. "The human capital–economic growth nexus in SSA countries: what can strengthen the relationship?," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 47(9), pages 1143-1159, July.
    7. Eide, Eric R. & Showalter, Mark H., 2011. "Estimating the relation between health and education: What do we know and what do we need to know?," Economics of Education Review, Elsevier, vol. 30(5), pages 778-791, October.
    8. Suleman Sarwar & Dalia Streimikiene & Rida Waheed & Zouheir Mighri, 2021. "Revisiting the empirical relationship among the main targets of sustainable development: Growth, education, health and carbon emissions," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(2), pages 419-440, March.
    9. Jana Asher & Beth Osborne Daponte, 2010. "A Hypothetical Cohort Model of Human Development," Human Development Research Papers (2009 to present) HDRP-2010-40, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    10. Ogundari, Kolawole & Awokuse, Titus, 2018. "Human capital contribution to economic growth in Sub-Saharan Africa: Does health status matter more than education?," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 131-140.
    11. Sultana, Tanzila & Dey, Sima Rani & Tareque, Mohammad, 2022. "Exploring the linkage between human capital and economic growth: A look at 141 developing and developed countries," Economic Systems, Elsevier, vol. 46(3).
    12. Bosede Ngozi Adeleye & Ismail Bengana & Abdelaziz Boukhelkhal & Mohammad Musa Shafiq & Hauwah K. K. Abdulkareem, 2022. "Does Human Capital Tilt the Population-Economic Growth Dynamics? Evidence from Middle East and North African Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(2), pages 863-883, July.
    13. Herwartz, Helmut & Schley, Katharina, 2018. "Improving health care service provision by adapting to regional diversity: An efficiency analysis for the case of Germany," Health Policy, Elsevier, vol. 122(3), pages 293-300.
    14. Murat CETIN & Ibrahim DOGAN, 2015. "The Impact Of Education And Health On Economic Growth: Evidence From Romania (1980-2011)," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 133-147, June.
    15. GUISAN, Maria-Carmen, 2009. "Education, Health And Economic Development: A Survey Of Quantitative Economic Studies, 2001-2009," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 9(1), pages 129-148.
    16. Jude Eggoh & Hilaire Houeninvo & Gilles-Armand Sossou, 2015. "Education, Health And Economic Growth In African Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(1), pages 93-111, March.
    17. Michael Takudzwa Pasara & Tapiwa Kelvin Mutambirwa & Nolutho Diko, 2020. "The Trivariate Causality among Education, Health, and Economic Growth in Zimbabwe," Sustainability, MDPI, vol. 12(4), pages 1-15, February.

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    More about this item

    Keywords

    Human Capital; Health; Education; Economic growth; Cointegration; ECM; Causality;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • I1 - Health, Education, and Welfare - - Health
    • I2 - Health, Education, and Welfare - - Education

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