Impacts of health condition on economic growth in the 1990s: an analysis for the Brazilian states
Kenya V. Noronha, Centro de Desenvolvimento e Planejamento Regional (CEDEPLAR)
Lízia Figueirêdo, Pontifícia Universidade Católica de Minas Gerais
Monica V. Andrade, Centro de Desenvolvimento e Planejamento Regional (CEDEPLAR)
This paper aims to test the relationship between health and per capita economic growth. Two main causalities were discussed: if health would directly increase labour productivity or if it would, indirectly, intensify the positive effect of education on growth. A better health status could decrease the depreciation of human capital, proxied by education. We run two basic specifications: the first one include the mortality rate as the proxy for health together with traditional variables usually discussed in the economic growth literature; the second one include interaction terms to capture the indirect effects of health. Our main results indicate that health spurs growth specially trough the indirect effect on economic growth.
Presented in Session 36: Demographic and socio-economic consequences of adverse mortality and health trends