The Impact of Poor Health on Factor Productivity

Journal of Development Studies, 42 (6), 2006, pp. 918-938

43 Pages Posted: 31 Dec 2003 Last revised: 29 Aug 2012

See all articles by Matthew A. Cole

Matthew A. Cole

University of Birmingham - Department of Economics

Eric Neumayer

London School of Economics and Political Science (LSE)

Date Written: March 1, 2005

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 waterborne diseases. We find the impact of poor health on TFP to be negative, significant, and robust across a wide variety of specifications.

Keywords: Total factor productivity, disease, health, underdevelopment

JEL Classification: O47, I12

Suggested Citation

Cole, Matthew A. and Neumayer, Eric, The Impact of Poor Health on Factor Productivity (March 1, 2005). Journal of Development Studies, 42 (6), 2006, pp. 918-938 . Available at SSRN: https://ssrn.com/abstract=482654 or http://dx.doi.org/10.2139/ssrn.482654

Matthew A. Cole

University of Birmingham - Department of Economics ( email )

Economics Department
Birmingham, B15 2TT
United Kingdom

Eric Neumayer (Contact Author)

London School of Economics and Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom
+44 207 955 7598 (Phone)
+44 207 955 7412 (Fax)

HOME PAGE: http://personal.lse.ac.uk/neumayer

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