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Basic Needs, Government Debt and Economic Growth

  • Samuel Perlo-Freeman

    ()

    (School of Economics, University of the West of England)

  • Don Webber

    ()

    (School of Economics, University of the West of England)

This paper investigates the relationships between basic needs and economic growth where the interactions between output, health, nutrition and education are explicitly simultaneous. We find a unidirectional relationship that improving basic welfare contributes strongly to labour productivity change, but a clear reverse causation only from growth to nutrition. There are substantial differences in the patterns of simultaneous interactions at different income and welfare levels. There are strong self-reinforcing effects of literacy and debt service on poverty, making it difficult for poor countries to rectify their situation. Channelling resources towards improving health, education and nutrition could bring dramatic economic returns.

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File URL: http://carecon.org.uk/DPs/0706.pdf
File Function: First version, 2007
Download Restriction: no

Paper provided by Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol in its series Working Papers with number 0706.

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Length: 24 pages
Date of creation: Jun 2007
Date of revision:
Handle: RePEc:uwe:wpaper:0706
Contact details of provider: Postal: 0117 328 3610
Phone: 0117 328 3610
Web page: http://www1.uwe.ac.uk/bl/research/bristoleconomics.aspx

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