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Impacts of health on economic growth: evidence from structural equation modelling

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  • C. M. Jayadevan

    (Swinburne University of Technology)

Abstract

Human capital plays an important role in the process of economic growth. Two key components of human capital are education and health. The primary aim of this research was to test the hypothesis that health human capital impacts the economic growth. This study analysed the impact of health human capital on the economic growth of 181 countries over a 17-year period, 2001–2017, using structural equation modelling methodology and panel data. The study has observed that the declining trends in poverty ratio, infant mortality rate and fertility rate induced economic growth. On the other hand, increasing trends in life expectancy, health expenditure and technological progress positively affected economic growth. Overall, our results using structural equation modelling methodology involving 181 countries from 2001 to 2017 indicate that health human capital can have significant positive impacts on economic growth if adequate measures are taken for increasing health expenditure, life expectancy and technological progress while reducing poverty ratio, infant mortality rate and fertility rate especially for developing countries.

Suggested Citation

  • C. M. Jayadevan, 2021. "Impacts of health on economic growth: evidence from structural equation modelling," Asia-Pacific Journal of Regional Science, Springer, vol. 5(2), pages 513-522, June.
    • Handle: RePEc:spr:apjors:v:5:y:2021:i:2:d:10.1007_s41685-020-00182-4
    DOI: 10.1007/s41685-020-00182-4
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    2. Wei Jiang & Yadong Wang, 2023. "Asymmetric Effects of Human Health Capital on Economic Growth in China: An Empirical Investigation Based on the NARDL Model," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    3. Nchofoung, Tii N. & Achuo, Elvis Dze & Asongu, Simplice A., 2021. "Resource rents and inclusive human development in developing countries," Resources Policy, Elsevier, vol. 74(C).

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