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Understanding the Dynamics between Income and Health: Evidence Form African’s Richest and Poorest Countries

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  • Odeyemi Gbenga A.

Abstract

This study provides evidence on income and health causality and dynamics (Shocks) by employing time series panel data set with a VAR representation among African richest and poorest countries. Three categories were used in this study. All countries combined: poorest countries: and riches countries. The findings confirm the type of causality among African’s poorest countries to be bi-directional i.e. from health to wealth and vice-versa while it is a unidirectional form health to wealth among the “All country category†. The Richest country category showed causality neither from either direction. Uni-directional causality generally runs from health to wealth in low- and middle-income countries. All African countries considered in this study can be classifies as low-middle income countries on a globally based ranking.

Suggested Citation

  • Odeyemi Gbenga A., 2015. "Understanding the Dynamics between Income and Health: Evidence Form African’s Richest and Poorest Countries," Journal of Public Policy & Governance, Research Academy of Social Sciences, vol. 2(2), pages 56-67.
    • Handle: RePEc:rss:jnljpg:v2i2p2
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    4. James P. Smith, 1999. "Healthy Bodies and Thick Wallets: The Dual Relation between Health and Economic Status," Journal of Economic Perspectives, American Economic Association, vol. 13(2), pages 145-166, Spring.
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