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Do health investments improve agricultural productivity? Lessons from agricultural household and health research

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  • McNamara, Paul E.
  • Ulimwengu, John M.
  • Leonard, Kenneth L.

Abstract

Determining the causality between health measures and both income and labor productivity remains an ongoing challenge for economists. This review paper aims to answer the question: Does improved population health lead to higher rates of agricultural growth? In attempting to answer this question, we survey the empirical literature at micro and macro levels concerning the link between health investments and agricultural productivity. The evidence from some micro-level studies suggests that inexpensive health interventions can have a very large impact on labor productivity. The macro-level evidence at the country and global level, however, is mixed at best and in some cases suggests that health care interventions have no impact on income, much less on agricultural productivity. At both micro and macro levels, the literature does not provide a clear-cut answer to the question under investigation. Overall, the review reveals a great deal of heterogeneity in terms of estimation methods, definition and measurement of health variables, choice of economic outcomes, single-equation versus multiple-equation approach, and static versus dynamic approach. The actual magnitude of estimated elasticities is difficult to assess in part due to estimation bias caused by the endogeneity of health outcomes. We also found significant gaps in the literature; for example, very little attention is given to demand for health inputs by rural populations and farmers.

Suggested Citation

  • McNamara, Paul E. & Ulimwengu, John M. & Leonard, Kenneth L., 2010. "Do health investments improve agricultural productivity? Lessons from agricultural household and health research," IFPRI discussion papers 1012, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1012
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    Cited by:

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    2. Ioanna G. Gkiza & Stefanos A. Nastis, 2017. "Health and Women’s Role in Agricultural Production Efficiency," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(3), pages 428-440.
    3. Sene, Ligane Massamba & Badiane, Ousmane, 2015. "Out-of-pocket health payments: a catalyst for agricultural productivity growth, but with potentially impoverishing effects," 2015 Conference, August 9-14, 2015, Milan, Italy 212261, International Association of Agricultural Economists.
    4. Jean-Marc Montaud & Mahamadou Roufahi Tankari, 2013. "When social goals meet economic goals: the double dividend of extending free access to healthcare in Uganda," Working Papers hal-01880339, HAL.
    5. Jean-Marc Montaud & Mahamadou Roufahi Tankari, 2013. "When social goals meet economic goals: the double dividend of extending free access to healthcare in Uganda," Working Papers hal-01880339, HAL.
    6. Allen, Summer L. & Qaim, Matin, 2012. "Agricultural productivity and public expenditures in sub-saharan africa:," IFPRI discussion papers 1173, International Food Policy Research Institute (IFPRI).
    7. Ulimwengu, J. & Makombe, T., 2018. "Farmers’ Social Expenditures and Agricultural Productivity A state variables approach," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276000, International Association of Agricultural Economists.
    8. Pierre-Richard Agénor, 2012. "A Computable OLG Model for Gender and Growth Policy Analysis," Centre for Growth and Business Cycle Research Discussion Paper Series 169, Economics, The University of Manchester.
    9. Allen, Summer L. & Badiane, Ousmane & Ulimwengu, John M., 2012. "Government expenditures, social outcomes, and marginal productivity of agricultural inputs: a case study for Tanzania," IFPRI discussion papers 1172, International Food Policy Research Institute (IFPRI).
    10. Robinson, Sherman & Levy, Stephanie, 2014. "Can cash transfers promote the local economy? A case study for Cambodia:," IFPRI discussion papers 1334, International Food Policy Research Institute (IFPRI).

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    Keywords

    Agriculture; Growth; health; Investment; Nutrition; productivity;
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