Growth Effects of Health Inputs and Outcomes in Sub-Sahara African Countries (1995-2011)

Olumuyiwa Apanisile and Taiwo Akinlo

Asian Economic and Financial Review, 2014, vol. 4, issue 6, 705-714

Abstract: The study examined the contribution of health inputs and outcomes to growth process in the Sub-Saharan Africa. Panel data of 30 countries from the sub-region from 1995 to 2011was used in a dynamic Generalized Method of Moment (GMM) modeling framework. The study used secondary school enrolment and government expenditure on health as health inputs while child mortality rate was used as a proxy for health outcomes. Results showed that education has statistically significant positive effect on economic growth while both government expenditure on health and mortality rate have statistically significant negative effects. The coefficients of the variables revealed that health (reduction in child mortality rate) is relatively more effective in promoting economic growth than education as an input in the growth process as the effects of health overwhelmingly supersedes the effects of education in the dynamic endogenous growth model estimated. This implies while both education and health care are crucial and important in the growth process, in a situation of resources constraints, emphasis should first be placed on adequate and efficient healthcare delivery and then provision of higher education.

Keywords: Human capital; Endogenous growth models; Panel data; GMM; Health input; Health output (search for similar items in EconPapers)
Date: 2014
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