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Investigating the relationship between health and economic growth: empirical evidence from a panel of 5 Asian countries

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  • Narayan, Seema
  • Narayan, Paresh Kumar
  • Mishra, Sagarika

Abstract

In this paper, we investigate the relationship between health and economic growth through including investment, exports, imports, and research and development (R&D), for 5 Asian countries using panel unit root, panel cointegration with structural breaks and panel long-run estimator for the period 1974-2007. We model this relationship within the production function framework, and unravel two important results. First, we find that in all four variants of the growth model, variables share a long-run relationship; that is, they are cointegrated. Second, we find that in the long-run, while health, investment, exports, EDRD (the interaction term between education and R&D), and R&D have contributed positively to economic growth, imports have had a statistically significant negative effect while education has had an insignificant effect. We draw important policy implications from these findings.
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  • Narayan, Seema & Narayan, Paresh Kumar & Mishra, Sagarika, 2010. "Investigating the relationship between health and economic growth: empirical evidence from a panel of 5 Asian countries," Working Papers eco_2010_08, Deakin University, Department of Economics.
  • Handle: RePEc:dkn:econwp:eco_2010_08
    DOI: 10.1016/j.asieco.2010.03.006
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    Keywords

    Health; Economic Growth; Panel Unit Root; Panel Cointegration;
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