The impact of improved nutrition on labor productivity and GDP growth rate in low- and middle-income countries

Majd Abdulla

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: This study examined the effects of nutrition on the growth rate of country economies over time. Previous studies on this topic have resulted in debates among researchers over how significant nutritional effects are on individual country economies. For this study, data were collected for four decades (1960s, 1970, 1980s, and 1990s) for 43 low- and middle-income countries. The data were analyzed to determine the effect of nutrition, represented by dietary energy supply (DES), on the growth rate of gross domestic product (GDP) per worker and on labor productivity. The research utilized ordinary least squares, instrumental variables, and random effects regressions in the context of the Solow growth rate model. The research revealed that nutrition did, indeed, have an effect on the economies, but the impact was not very significant for GDP growth rate per worker and labor productivity. The t statistic for the nutrition variable did not support the contribution of DES to growth rate GDP per worker. On the contrary, other variables such as capital per worker and literacy rate showed stronger impacts that did the DES variable.

Date: 2004-01-01
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