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The impact of poor health on total factor productivity

Author

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  • Matthew Cole
  • Eric Neumayer

Abstract

A number of recent studies have illustrated the link between health and economic growth. This paper argues that a key mechanism through which health affects growth is via total factor productivity (TFP). We first estimate TFP based on a production function and then estimate the determinants of TFP, paying particular attention to three indicators of health that are particularly problematic in developing regions: malnutrition, malaria and water borne diseases. We find the impact of poor health on TFP to be negative, significant, and robust across a wide variety of specifications.

Suggested Citation

  • Matthew Cole & Eric Neumayer, 2006. "The impact of poor health on total factor productivity," Journal of Development Studies, Taylor & Francis Journals, vol. 42(6), pages 918-938.
    • Handle: RePEc:taf:jdevst:v:42:y:2006:i:6:p:918-938
    DOI: 10.1080/00220380600774681
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    More about this item

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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