Understanding the Dynamics between Income and Health: Evidence Form African’s Richest and Poorest Countries

This study provides evidence on income and health causality and dynamics (Shocks) by employing time series panel data set with a VAR representation among African richest and poorest countries. Three categories were used in this study. All countries combined: poorest countries: and riches countries. The findings confirm the type of causality among African’s poorest countries to be bi-directional i.e. from health to wealth and vice-versa while it is a unidirectional form health to wealth among the “All country category†. The Richest country category showed causality neither from either direction. Uni-directional causality generally runs from health to wealth in low- and middle-income countries. All African countries considered in this study can be classifies as low-middle income countries on a globally based ranking.