Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/321464 
Year of Publication: 
2024
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 12 [Issue:] 1 [Article No.:] 2331010 [Year:] 2024 [Pages:] 1-13
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
The paper examines the relationship between health and economic growth using a dynamic panel with threshold effect and endogeneity. The study uses a sample of 136 countries over the period of 1965-2015 and the results indicate that the relationship between health and economic growth is nonlinear. The findings suggest that the impact of health on economic growth is only positive in countries that have attained minimum benchmarks of health improvement. These findings carry significant policy implications. Low-income countries need a comprehensive approach, encompassing multiple factors, such as education enhancement, productivity boost, and entrepreneurship promotion, that go beyond health promotion to foster substantial economic growth. In countries already attaining satisfactory health outcomes, policies prioritizing improved health outcomes, through directing investments towards Research and Development can serve as an effective means to promote sustainable economic growth. The paper provides an in-depth analysis of the relationship between health and economic growth. By explicitly examining potential non-linearities and thresholds, the study offers insights into how variations in health status may influence economic growth differently across different thresholds or stages of development. By identifying the key health thresholds, the research provides policymakers with actionable insights to allocate resources effectively. This guidance is critical for crafting targeted policies that maximize the impact of health investments on economic development.
Subjects: 
Health
economic growth
instrumental variables
threshold models
life expectancy
JEL: 
C22
I10
O47
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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