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The impact of poor health on factor productivity: an empirical investigation

By Matthew A. Cole and 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

Topics: HT Communities. Classes. Races, H Social Sciences (General)
Publisher: Routledge
Year: 2006
DOI identifier: 10.1080/00220380600774681
OAI identifier: oai:eprints.lse.ac.uk:19780
Provided by: LSE Research Online

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