The impact of poor health on total factor productivity

Matthew Cole and Eric Neumayer

Journal of Development Studies, 2006, vol. 42, issue 6, 918-938

Abstract: A number of recent studies have illustrated the link between health and economic growth. This paper argues that a key mechanism through which health affects growth is via total factor productivity (TFP). We first estimate TFP based on a production function and then estimate the determinants of TFP, paying particular attention to three indicators of health that are particularly problematic in developing regions: malnutrition, malaria and water borne diseases. We find the impact of poor health on TFP to be negative, significant, and robust across a wide variety of specifications.

Date: 2006
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DOI: 10.1080/00220380600774681

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