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Does health promote economic growth? Portuguese case study: from dictatorship to full democracy

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  • Sónia Morgado

Abstract

This paper revisits the debate on health and economic growth (Deaton in J Econ Lit 51:113–158, 2003 ) focusing on the Portuguese case by testing the relationship between growth and health. We test Portuguese insights, using time series data from 1960 to 2005, taking into account different variables (life expectancy, labour, capital, infant mortality) and considering the years that included major events on the political scene, such as the dictatorship and a closed economy (1960–1974), a revolution (1974) and full democracy and an open economy (1975–2005), factors that influence major economic, cultural, social and politic indicators. Therefore the analysis is carried out adopting Lucas’ (J Monet Econ 22(1):3–42, 1988 ) endogenous growth model that considers human capital as one factor of production, it adopts a VAR (vector autoregressive) model to test the causality between growth and health. Estimates based on the VAR seem to confirm that economic growth influences the health process, but health does not promote growth, during the period under study. Copyright Springer-Verlag Berlin Heidelberg 2014

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  • Sónia Morgado, 2014. "Does health promote economic growth? Portuguese case study: from dictatorship to full democracy," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(6), pages 591-598, July.
    • Handle: RePEc:spr:eujhec:v:15:y:2014:i:6:p:591-598
    DOI: 10.1007/s10198-013-0497-9
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    References listed on IDEAS

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    2. Tânia Pinto & Aurora Teixeira, 2023. "Does scientific research output matter for Portugal’s economic growth?," GEE Papers 0174, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jul 2023.
    3. Yi-Hui Liu & Wei-Shiun Chang & Wen-Yi Chen, 2019. "Health progress and economic growth in the United States: the mixed frequency VAR analyses," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(4), pages 1895-1911, July.

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