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The impact of poor health on total factor productivity

  • Matthew Cole
  • Eric Neumayer

A number of recent studies have illustrated the link between health and economic growth. This paper argues that a key mechanism through which health affects growth is via total factor productivity (TFP). We first estimate TFP based on a production function and then estimate the determinants of TFP, paying particular attention to three indicators of health that are particularly problematic in developing regions: malnutrition, malaria and water borne diseases. We find the impact of poor health on TFP to be negative, significant, and robust across a wide variety of specifications.

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Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 42 (2006)
Issue (Month): 6 ()
Pages: 918-938

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Handle: RePEc:taf:jdevst:v:42:y:2006:i:6:p:918-938
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