Skip to main content

Advertisement

SpringerLink
Log in

Investigating the causal relationship between woman's health and economic growth in groups D8 and G7 countries

  • Published:
Quality & Quantity Aims and scope Submit manuscript

Abstract

There are different perspectives about the relationship between woman's health and economic growth. The question among economists is, whether the economic growth is affected by woman's health or economic growth causes woman's health? Accordingly, the major purpose of this study is to investigate the causal relationship between woman's health and economic growth group by using the Conjugated Granger Causality Approach and the Dumitrescu and Hurlin's test over the period 1990–2016 in two groups of D8 and G7 countries. Results indicate that in the D8 countries, the hypothesis of no causal relationship between life expectancy, fertility rate and economic growth mortality cannot be rejected at a significant level of 5%, but the hypothesis of no relationship causes of economic growth are rejected by life expectancy, fertility rates and mortality rates. Therefore, there is a one-way causal relationship between economic growth in life expectancy, fertility rates and mortality rates. On the other hand, the study for G7 group countries shows that, the hypothesis of no causal relationship between life expectancy and mortality rate to economic growth as well as the absence of causality from economic growth to life expectancy and mortality rates cannot be rejected at a significant level of 5%. Therefore, there is no causal relationship between life expectancy and mortality rate and economic growth and these two variables have no effect on each other. Also, the hypothesis of no causal relationship between fertility rate and economic growth and absence of causality relation from economic growth to fertility rate is rejected at the significant level of 5%. There is therefore a two-way causal link between fertility rate and economic growth.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

Notes

  1. The D8 group of countries includes eight developing Islamic countries: Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey. It was established on June 15, 1996, with such goals as strengthening and promoting the position of developing Islamic countries in the world economy, diversifying and creating new opportunities to expand business relationships, increasing comprehensive participation at the international level, meeting better living standards and boosting the level of social and economic development of member countries.

  2. The Group of Seven (G7) is an intergovernmental organization made up of the world's largest developed economies—France, Germany, Italy, Japan, the United States, the United Kingdom, and Canada.

  3. Southern Africa Development Community.

  4. World Development Indicators–World Bank Open Data.

  5. World Development Indicators.

  6. See Dumitrescu and Hurlin (2012, p. 1453) for the mathematical definition of wi. Note however that T in DH's formulas must be understood as the number of observations remaining in the estimations that is the number of periods minus the number of lags included. In order to be consistent with our notation, we therefore replaced DH's T by T–K in the following formulas of the present paper.

  7. Kmax stands for the maximum possible number of lags to be considered in the entire procedure.

  8. The procedure we present here differs slightly from that proposed by DH, in the numbering of the steps, but more importantly also in the definition of the initial conditions (our step 4), which is not addressed in DH, and the construction of the resampled series (our step 5).

References

  • Aghaei, M., Ghanbari, A., Agheli, L., Sadeghi, H.: Investigating the relationship between energy consumption and economic growth in Iran’s provinces using cointegration and multivariate panel error correction model. J. Econ. Model. 3(9), 148–185 (2012). (in Persian)

    Google Scholar 

  • Alizadeh, M.: The role of woman’s employment in development. J. Womans Soc. 2(5), 49–59 (2010)

    Google Scholar 

  • Amiri, A., Gerdtham, U.: Impact of maternal and child health on economic growth: new evidence based granger causality and DEA analysis. In: Newborn and Child Health, Study Commissioned by the Partnership for Maternal. Lund University, Sweden (2013)

  • Barzani, M., Hatami, R.: The effect of educational gender equality on economic growth in selected developing countries (2000-06-29) simultaneous system model. Quant. Q. Econ. (Q. J. Quant. Econ.) 7(1): 53–73 (2010)

  • Beheshti, M.B., Sojoodi, S.: Empirical analysis of the relationship between health expenditures and gross domestic product in Iran. Q. J. Econ. Stud. 4(4), 115–135 (2007)

    Google Scholar 

  • Bloom, D., Kuhn, M., Prettner, K.: The contribution of female health to economic development. National Bureau of Economic Research, No 9268 (2015)

  • Boachie, M.K.: Health and economic growth in Ghana: an empirical investigation. Fudan J. Humanit. Soc. Sci. 10(2), 253–265 (2017)

    Article  Google Scholar 

  • Breitung, J.: A parametric approach to the estimation of cointegration vectors in panel data. Econom. Rev. 24(2), 151–173 (2005)

    Article  Google Scholar 

  • Devlin, N., Hansen, P.: Health care spending and economic output: Granger causality. Appl. Econ. Lett. 8(8), 561–564 (2001)

    Article  Google Scholar 

  • Dumitrescu, E., Hurlin, C.: Testing for Granger non-causality in heterogeneous panels. Econ. Model. 29(4), 1450–1460 (2012)

    Article  Google Scholar 

  • Erdil, E., Yetkiner, I.H.: A panel data approach for income health causality. Hamburg University. Research unit sustainability and global change. In: Working Papers FNU-47 (2004)

  • Field, E., Robles, O., Torero, M.: Iodine deficiency and schooling attainment in Tanzania. Am. Econ. J. Appl. Econ. 1(4), 140–169 (2009)

    Article  Google Scholar 

  • Galor, O., Weil, D.N.: Population, technology, and growth: from Malthusian stagnation to the demographic transition and beyond. Am. Econ. Rev. 90(4), 806–828 (2000)

    Article  Google Scholar 

  • Ghaffari, H., Younesi, A., Rafiei, M.: Analysing the role of investment in education on sustainable development; with special emphasis on environmental education. J. Environ. Educ. Sustain. Dev. 5(1), 79–100 (2016)

    Google Scholar 

  • Goghardchian, A., Teyyebi, S.K., Ghazavi, E.: The effect of women’s employment on gender income gap in Iran (1991–2011). Econ. Model. Res. Fall 17(5), 145–169 (2014)

    Google Scholar 

  • Granger, C. W. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica: journal of the Econometric Society, 424–438

  • Hajabi, E., Razmi, M.: The impact of woman's higher education on economic growth in selected OPEC and North African countries. Q. J. Econ. Model. Res. 6(24), 175–200 (2016)

    Article  Google Scholar 

  • Hariri, M. Y.: Thematic culture of descriptive economics. Etelaat, Tehran (2009) [in Persian]

    Google Scholar 

  • Hasanshahi, M.: Measuring the impact of health on economic growth. J. Health Admin. 20(69), 7–18 (2017)

    Google Scholar 

  • Hashemi, S.A.: Women centered on the sustainable development of society (2009)

  • Hassan, G., Cooray, A.: The effect of female and male health on economic growth: cross-country evidence within a production function framework. In: Proceedings of the 41st Australian Conference of Economists, pp. 1–29 (2012)

  • Hoyos, R., Sarafidis, V.: Testing for cross-sectional dependence in panel data models. Stata J. 6(4), 484–496 (2006)

    Article  Google Scholar 

  • Knowles, S., Owen, P.: Health capital and cross-country variation in income per capita in the Mankiw–Romer–Weil model. Econ. Lett. 48(1), 99–106 (1995)

    Article  Google Scholar 

  • Licumba, E., Dzator, J., Zhang, X.: Health and economic growth: are there gendered effects? Evidence from selected southern Africa development community region. J. Dev. Areas 50(5), 215227 (2016)

    Article  Google Scholar 

  • Lopez, L., Weber, S.: Testing for Granger causality in panel data. Stata J. 17(4), 972–984 (2017)

    Article  Google Scholar 

  • Lorentzen, P., McMillan, J., Wacziarg, R.: Death and development. J. Econ. Growth 13(2), 81–124 (2008)

    Article  Google Scholar 

  • Lotfalipour, M., Falahi, M., Borji, M.: The effects of health indicators on Iran’s economic growth. J. Health Manag. 14(46), 57–70 (2011)

    Google Scholar 

  • Mankiw, N., Romer, D., Weil, D.: Contribution to the empirics of economic growth. Quart. J. Econ. 107(2), 407–437 (1992)

    Article  Google Scholar 

  • Mason, A.: Saving, economic growth, and demographic change. Popul. Dev. Rev. 14(1), 113–144 (1988)

    Article  Google Scholar 

  • Naya, D., NdeffoLuc, N., Edokat, E.: Human capital and economic growth in Cameroon. Online J. Soc. Sci. Res. 1(3), 78–84 (2012)

    Google Scholar 

  • Onisanwa, I.: The impact of health on economic growth in Nigeria. J. Econ. Sustain. Dev. 5(19), 159–166 (2014)

    Google Scholar 

  • Oster, E., Shoulson, I., Dorsey, E.: Limited life expectancy, human capital and health investments. Natl. Bureau Econ. Res. 103(5), 35–49 (2012)

    Google Scholar 

  • Panahi, H., Aleemran, S.A.: The effect of government health expenditures on economic growth in countries of D8 organization for economic cooperation. J. Health Dev. 4(4), 327–336 (2015)

    Google Scholar 

  • Pesaran, M.H. General Diagnostic Tests for Cross Section Dependence in Panels. University of Cambridge, Cambridge (2004)

  • Pesaran, M.H., Yamagata, T.: Testing slope homogeneity in large panels. J. Econ. 142(1), 50–93 (2008)

    Article  Google Scholar 

  • Pesaran, M.H.: Estimation and inference in large heterogeneous panel with a multifactor error structure. Econometrica 74(4), 967–1012 (2006)

    Article  Google Scholar 

  • Pesaran, M., Yamagata, T.: Testing slope homogeneity in large panels. J. Economet. 142(1), 50–93 (2008)

    Article  Google Scholar 

  • Qingyuan, S.H.E.N., Chang, B., Guoyu, Y.I.N., Wendong, W.A.N.G.: The impact of health investment on economic growth: evidence from China. Iran. J. Public Health 49(4), 684–692 (2020)

    Google Scholar 

  • Rabiee, M., Heidari, S., Shariah Bahadori, S., Kani, S.: Effect of health indicators on economic growth: case study of developed and developed countries. J. Econ. 13(7 & 8), 73–88 (2013)

    Google Scholar 

  • Rezaee, N., Salsali, M., Jahantigh, M.: Identifying the dimensions of Iranian women’s health: a review of qualitative studies. Nurs. Res. 3(10), 118–130 (2013)

    Google Scholar 

  • Rivera, B., IV., Currais, L.: Economic growth and health: direct impact or reverse causation? Appl. Econ. Lett. 6(11), 761–764 (1999)

    Article  Google Scholar 

  • Salmani, B., Panahi, H., Mohamamdi Khaneghahi, R.: The impact of health on per capita income, an empirical analysis in middle income countries. J. Res. Econ. Growth Dev. 5(20), 99–108 (2015)

    Google Scholar 

  • Sharma, R.: Health and economic growth: evidence from dynamic panel data of 143 years. PLoS ONE 13(10), e0204940 (2018)

    Article  Google Scholar 

  • Shamshiri-Milani, H.: Mother's rights to life, a medical approach to abortion. J Reprod Infertility 6(4), 457–464 (2005) [in Persian]

    Google Scholar 

  • Weil, D.: Accounting for the effect of health on economic growth. Q. J. Econ. 122(3), 1265–1306 (2006)

    Article  Google Scholar 

  • World Health Organization (2010)

Download references

Author information

Authors and Affiliations

  1. Faculty of Economics and Management, University of Tabriz, Tabriz, Iran

    Aylar Jalili, Hossein Panahi & Sakineh Sojoodi

Authors
  1. Aylar Jalili
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Hossein Panahi
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Sakineh Sojoodi
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Sakineh Sojoodi.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Jalili, A., Panahi, H. & Sojoodi, S. Investigating the causal relationship between woman's health and economic growth in groups D8 and G7 countries. Qual Quant 56, 359–374 (2022). https://doi.org/10.1007/s11135-021-01133-7

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11135-021-01133-7

Keywords

Search

Navigation