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How Does the Health Sector Benefit from Trade Openness? Evidence from Sub‐Saharan Africa

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  • Jacob Novignon
  • Yaw Boateng Atakorah
  • Gbetoton Nadege Djossou

Abstract

The linkages between international trade and economic performance has received significant attention from policymakers and researchers. There is consensus in the literature that improved trade openness corresponds to improved economic growth. In this study, we argue that trade openness has a significant impact on population health outcomes and financing. The study employed a balanced panel data for 42 sub‐Saharan African (SSA) countries over the period 1995–2013. Population health status was measured by total life expectancy at birth, infant mortality rate and under‐five mortality rate. Three main estimation models were used: (1) fixed effect (FE); (2) random effect (RE); and (3) the generalized method of moments (GMM) in estimating the relationships. The results showed that trade openness has a positive and significant effect on life expectancy, a negative and significant effect on the infant mortality rate and a negative impact of trade openness on the under‐five mortality rate. A positive effect of trade openness on health financing was also realized. The findings of the study support international trade integration and emphasize the need for countries to be conscious of gains from trade within sub‐sectors of the economy.

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  • Jacob Novignon & Yaw Boateng Atakorah & Gbetoton Nadege Djossou, 2018. "How Does the Health Sector Benefit from Trade Openness? Evidence from Sub‐Saharan Africa," African Development Review, African Development Bank, vol. 30(2), pages 135-148, June.
    • Handle: RePEc:bla:afrdev:v:30:y:2018:i:2:p:135-148
    DOI: 10.1111/1467-8268.12319
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    Cited by:

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    2. Mathurin Aimé Mekam Pouatcha & Marilena Giannetti & Elton Beqiraj, 2024. "The relationship between FDI and population health in Sub-Saharan Africa: The role of per-capita income," Economics Bulletin, AccessEcon, vol. 44(2), pages 557-570.
    3. Samuel Tawiah Baidoo & Daniel Sakyi & Enock Kojo Ayesu & Grace Nkansa Asante & John Bosco Dramani, 2023. "Estimating the effect of economic globalization on welfare in Africa," SN Business & Economics, Springer, vol. 3(9), pages 1-25, September.
    4. Jaison Chireshe & Matthew K. Ocran, 2020. "Health care expenditure and health outcomes in sub‐Saharan African countries," African Development Review, African Development Bank, vol. 32(3), pages 349-361, September.
    5. Muhammad Tahir & Munshi Naser Ibne Afzal & Muhammad Asim Afridi & Imran Naseem & Bilal Bin Saeed, 2019. "Terrorism and its Determinants in the Sub‐Saharan Africa Region: Some New Insights," African Development Review, African Development Bank, vol. 31(3), pages 393-406, September.
    6. Jeffrey Kouton & Rafiou R. Bétila & Moïse Lawin, 2021. "The Impact of ICT Development on Health Outcomes in Africa: Does Economic Freedom Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(4), pages 1830-1869, December.

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