IDEAS home Printed from https://ideas.repec.org/a/spr/qualqt/v55y2021i3d10.1007_s11135-020-01043-0.html
   My bibliography  Save this article

Does taxation on harmful products influence population health? Evidence from Africa using the dynamic panel system GMM approach

Author

Listed:
  • Mustapha Immurana

    (University of Health and Allied Sciences)

  • Abdul-Aziz Iddrisu

    (Kumasi Technical University)

  • Micheal Kofi Boachie

    (University of Cape Town)

Abstract

Products such as tobacco and alcohol are known to be deleterious to human health. Tobacco use for instance, causes over eight million deaths annually worldwide. This has necessitated the imposition of taxes on such harmful products aimed at reducing their demand and hence ensure enhanced population health. However, while the effects of such taxes on deaths related to the consumption of these products have been given much attention, very little attention has been given to how these taxes enhance overall population health beyond these related deaths. Using tobacco tax as a proxy for taxation on harmful products and life expectancy as a proxy for overall population health, this study, examines the effect of taxing harmful products on population health in 38 African countries from 2008–2018. The system Generalized Methods of Moments (GMM) regression is employed as the empirical estimation technique. The findings of the study show that, taxing harmful products enhances population health both in the short-run and long-run periods. The implication is that, governments, especially those in Africa, can use taxation on harmful products to improve population health even beyond deaths related to the consumption of these products.

Suggested Citation

  • Mustapha Immurana & Abdul-Aziz Iddrisu & Micheal Kofi Boachie, 2021. "Does taxation on harmful products influence population health? Evidence from Africa using the dynamic panel system GMM approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(3), pages 1091-1103, June.
  • Handle: RePEc:spr:qualqt:v:55:y:2021:i:3:d:10.1007_s11135-020-01043-0
    DOI: 10.1007/s11135-020-01043-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11135-020-01043-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11135-020-01043-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    2. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    3. Marie Daumal & Selin Ozyurt, 2010. "The Impact of International Trade Flows on the Growth of Brazilian States," Working Papers DT/2010/01, DIAL (Développement, Institutions et Mondialisation).
    4. Jha, Prabhat & Chaloupka, Frank (ed.), 2000. "Tobacco Control in Developing Countries," OUP Catalogue, Oxford University Press, number 9780192632463.
    5. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    6. Dambar Uprety, 2019. "Skilled migration and health outcomes in developing countries," International Journal of Health Economics and Management, Springer, vol. 19(1), pages 1-14, March.
    7. Grossman, Michael, 2000. "The human capital model," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 7, pages 347-408, Elsevier.
    8. Wagenaar, A.C. & Maldonado-Molina, M.M. & Wagenaar, B.H., 2009. "Effects of alcohol tax increases on alcohol-related disease mortality in Alaska: Time-series analyses from 1976 to 2004," American Journal of Public Health, American Public Health Association, vol. 99(8), pages 1464-1470.
    9. Korbinian Nagel & Dierk Herzer & Peter Nunnenkamp, 2015. "How Does FDI Affect Health?," International Economic Journal, Taylor & Francis Journals, vol. 29(4), pages 655-679, December.
    10. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
    11. Michael S Sharbaugh & Andrew D Althouse & Floyd W Thoma & Joon S Lee & Vincent M Figueredo & Suresh R Mulukutla, 2018. "Impact of cigarette taxes on smoking prevalence from 2001-2015: A report using the Behavioral and Risk Factor Surveillance Survey (BRFSS)," PLOS ONE, Public Library of Science, vol. 13(9), pages 1-10, September.
    12. Li-Ming Ho & Christian Schafferer & Jie-Min Lee & Chun-Yuan Yeh & Chi-Jung Hsieh, 2017. "The effect of cigarette price increases on cigarette consumption, tax revenue, and smoking-related death in Africa from 1999 to 2013," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 62(8), pages 899-909, November.
    13. Burns, Darren K. & Jones, Andrew P. & Goryakin, Yevgeniy & Suhrcke, Marc, 2017. "Is foreign direct investment good for health in low and middle income countries? An instrumental variable approach," Social Science & Medicine, Elsevier, vol. 181(C), pages 74-82.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mustapha Immurana & Micheal Kofi Boachie & Maxwell Ayindenaba Dalaba & Kofi Mintah Oware & Toby Joseph Mathew K.K. & Martin Amogre Ayanore & Hadrat Mohammed Yusif, 2021. "An empirical analysis of the effect of tobacco taxation on economic growth in 38 African countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(8), pages 1257-1269, November.
    2. Muhammad Asghar & Imran Sharif Chaudhry & Sharafat Ali, 2024. "Innovation, Energy Consumption and Trade Dynamic: Evidence from Developed and Developing Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 4356-4382, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Mustapha Immurana & Micheal Kofi Boachie & Maxwell Ayindenaba Dalaba & Kofi Mintah Oware & Toby Joseph Mathew K.K. & Martin Amogre Ayanore & Hadrat Mohammed Yusif, 2021. "An empirical analysis of the effect of tobacco taxation on economic growth in 38 African countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(8), pages 1257-1269, November.
    3. Cho, Seo-young & Vadlamannati, Krishna Chaitanya, 2010. "Compliance for big brothers: An empirical analysis on the impact of the anti-trafficking protocol," University of Göttingen Working Papers in Economics 118, University of Goettingen, Department of Economics.
    4. Huy Quang Doan, 2019. "Trade, Institutional Quality and Income: Empirical Evidence for Sub-Saharan Africa," Economies, MDPI, vol. 7(2), pages 1-23, May.
    5. Simona Galletta & Sebastiano Mazzù & Valeria Naciti & Carlo Vermiglio, 2021. "Sustainable development and financial institutions: Do banks' environmental policies influence customer deposits?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 643-656, January.
    6. Imam, M. & Jamasb, T. & Llorca, M. & Llorca, M., 2018. "Power Sector Reform and Corruption: Evidence from Electricity Industry in Sub-Saharan Africa," Cambridge Working Papers in Economics 1801, Faculty of Economics, University of Cambridge.
    7. Guglielmo Maria Caporale & Anamaria Diana Sova & Robert Sova, 2024. "The Covid‐19 pandemic and European trade flows: Evidence from a dynamic panel model," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 2563-2580, July.
    8. Zheng, Xinye & Li, Fanghua & Song, Shunfeng & Yu, Yihua, 2013. "Central government's infrastructure investment across Chinese regions: A dynamic spatial panel data approach," China Economic Review, Elsevier, vol. 27(C), pages 264-276.
    9. Martin Andersson & Hans Lööf, 2009. "Learning‐by‐Exporting Revisited: The Role of Intensity and Persistence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(4), pages 893-916, December.
    10. Mohammad Ziaul Hoque & MD. Rabiul Islam & Mohammad Nurul Azam, 2013. "Board Committee Meetings and Firm Financial Performance: An Investigation of Australian Companies," International Review of Finance, International Review of Finance Ltd., vol. 13(4), pages 503-528, December.
    11. Alexander Klemm & Stefan Parys, 2012. "Empirical evidence on the effects of tax incentives," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(3), pages 393-423, June.
    12. Tadadjeu, Sosson & Njangang, Henri & Asongu, Simplice A. & Kamguia, Brice, 2023. "Natural resources, child mortality and governance quality in African countries," Resources Policy, Elsevier, vol. 83(C).
    13. Hu, Juncheng, 2021. "Do facilitation payments affect earnings management? Evidence from China," Journal of Corporate Finance, Elsevier, vol. 68(C).
    14. Abdelraouf, Nadine & Noureldin, Diaa, 2022. "The impact of the exchange rate regime on the dispersion of the price-change distribution: Evidence from a large panel of countries," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 76(C).
    15. Qu, Guangjun & Sylwester, Kevin & Wang, Feng, 2016. "Anticorruption and Growth: Evidence from China," MPRA Paper 72190, University Library of Munich, Germany.
    16. DELL'ANNO, Roberto & VILLA, Stefania, 2012. "Growth in Transition Countries: Big Bang versus Gradualism," CELPE Discussion Papers 122, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    17. Lamar Crombach & Frank Bohn, 2024. "Uninformed voters with (im)precise expectations: Explaining political budget cycle puzzles," Economics and Politics, Wiley Blackwell, vol. 36(1), pages 275-311, March.
    18. Wahidin, Deni & Akimov, Alexandr & Roca, Eduardo, 2021. "The impact of bond market development on economic growth before and after the global financial crisis: Evidence from developed and developing countries," International Review of Financial Analysis, Elsevier, vol. 77(C).
    19. Abdramane Camara, 2023. "The Effect of Foreign Direct Investment on Tax Revenue," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 65(1), pages 168-190, March.
    20. Sarma, Sisira & Zaric, Gregory S. & Campbell, M. Karen & Gilliland, Jason, 2014. "The effect of physical activity on adult obesity: Evidence from the Canadian NPHS panel," Economics & Human Biology, Elsevier, vol. 14(C), pages 1-21.

    More about this item

    Keywords

    Population health; Taxation on harmful products; System GMM; Africa;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:qualqt:v:55:y:2021:i:3:d:10.1007_s11135-020-01043-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.