The Role Of Health Capital To Economic Growth In Sub-saharan Africa A Dynamic Panel Data Approach.

Economics Project Topics

Get the Complete Project Materials Now! ยป

There are considerable differences in income per capita and output per worker acrossrncountries of the world. The original Neo- classical growth model was not able to explainrnsuch income differences. Most of the works aimed at augmenting this model by includingrnhuman capital focus on education only. Little has been done in modeling stock of healthrncapital as a determinant of economic growth and so far empirical evidences of this arearnare not able to come up with conclusive results regarding the health-wealth nexus. Somernevidences support the view that 'health is wealth' while others contradict this and arguernin support of the negative relationship; and we see some countries with betterrngrowth/development but with unfavorable health indicators and vice versa that makes thernrelationship less clear and calls for further research. Methodological shortcomings arernmostly viewed as an important reason for inconsistent and inconclusive results inrnaddressing the problem. Solving the endogeneity of health is the notable problem in thisrnrespect.rnIn this study, therefore, we tried to explicitly model the role of health human capital inrneconomic growth of sub-Saharan African countries in which we included both health andrneducation variables to augment the Neo-classical growth model. We used two datarnsources, the World Development Indicators 2008-09(WDI) and the Penn World Tablern(PWT) Version 6.3, to construct alternative panel datasets. Our dynamic panel datarnmodel was estimated by using the System and Difference Generalized Methods ofrnMomentum (system GMM and difference GMM) that account the endogeneity of healthrnand other regressors. The result reveals that health human capital (peroxide by lifernexpectancy at birth and infant mortality rate) positively and significantly affectsrneconomic growth of sub-Saharan Africa while the effect of education was found to bernpositive but insignificant. This finding has a policy implication that investing in healthrnand improving health conditions helps countries accelerate their economic growth andrnreduce the existing poverty..

Get Full Work

Report copyright infringement or plagiarism

Be the First to Share On Social



1GB data
1GB data

RELATED TOPICS

1GB data
1GB data
The Role Of Health Capital To Economic Growth In Sub-saharan Africa A Dynamic Panel Data Approach.

237