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The effect of health investment on growth: A causality analysis

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Abstract

The aim of this paper is to analyze the effect of health investment on productivity as an important variable associated with human capital accumulation. The authors also study the possible existence of endogeneity by using instrumental variables estimation. The results that are obtained may be interpreted as evidence of the positive impact of health expenditure on income growth. Furthermore, the authors looked at the bounded gains of health status and divided the sample according to the median of total health expenditure and found that the countries with lower levels of health spending obtain larger benefits when the other determinants of growth are held constant.

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Authors and Affiliations

  1. University of La Coruna, Spain

    Berta Rivera & Luis Currais

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  1. Berta Rivera
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  2. Luis Currais
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Rivera, B., Currais, L. The effect of health investment on growth: A causality analysis. International Advances in Economic Research 9, 312–323 (2003). https://doi.org/10.1007/BF02296180

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