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Association of surgery and economic development in low-and middle-income countries: evidence from a dynamic panel data analysis

Author

Listed:
  • Ifeanyichi, Martilord
  • Nchege, Johnson Ezema
  • Aduku, Ebikabowei Biedomo
  • Kebede, Meskerem Aleka
  • Bognini, Maeve
  • Hargest, Rachel
  • Friebel, Rocco

Abstract

Introduction While health improvements drive economic growth, the specific macroeconomic impact of surgery remains unknown. Previous studies have quantified economic losses from unmet need but have not established whether surgery generates economic returns. This study investigates the association between surgical activity and economic growth across low- and middle-income countries (LMICs). Methods We analysed panel data from 95 LMICs (2000–2022) using System Generalised Method of Moments (GMM) estimation. Surgical volume was proxied by per capita suture consumption in kilograms (kg) measured by per capita suture imports (in kg), with gross domestic product (GDP) per capita adjusted for purchasing power parity as the outcome variable. We controlled for education, labour force, infrastructure, quality of governance, health expenditure, and credit availability while addressing endogeneity through internal instrumentation. Results Each 1% increase in per capita suture consumed corresponded to a 0.0083% increase in per capita GDP (p 0.05) or below the 75th percentile surgical activity settings (0.0049%; p>0.05). In a secondary (non-log-transformed) model, a 1-kg increase in per capita sutures consumption corresponded to an increase of 89 international dollars in per capita GDP (p

Suggested Citation

  • Ifeanyichi, Martilord & Nchege, Johnson Ezema & Aduku, Ebikabowei Biedomo & Kebede, Meskerem Aleka & Bognini, Maeve & Hargest, Rachel & Friebel, Rocco, 2026. "Association of surgery and economic development in low-and middle-income countries: evidence from a dynamic panel data analysis," LSE Research Online Documents on Economics 140264, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:140264
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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