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Policies to stimulate growth: should we invest in health or education?

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  • Don Webber

Abstract

Empirical studies in the literature on economic growth have focused on the affect of education and yet Knowles and Owen (1995, 1997) found health, proxied by life expectancy, to be highly statistically significant with education having a modest role. This study extends their model and employs variables that are more conducive to policy formulation: calorific intake and school enrolment ratios. Results suggest that reducing undernutrition would only make a modest contribution to economic growth while increasing enrolment ratios, especially secondary, has a positive and more significant effect. Policies to increase economic growth should favour investments in education over health.

Suggested Citation

  • Don Webber, 2002. "Policies to stimulate growth: should we invest in health or education?," Applied Economics, Taylor & Francis Journals, vol. 34(13), pages 1633-1643.
    • Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1633-1643
    DOI: 10.1080/00036840110115109
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    References listed on IDEAS

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    1. Carrin, Guy, 1984. "Economic evaluation of health care interventions: A review of alternative methods," Social Science & Medicine, Elsevier, vol. 19(10), pages 1015-1030, January.
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