It is beyond all shadows of doubts that health is one of the paramount factors dictating the functioning of any economy. It is true that the more healthy laborers are physically and mentally are more efficient and robust meaning suffering less debility and disability. In such a case there will be less chances of absenteeism from work due to poor health condition either directly or indirectly. It is obvious that poor health condition diminishes hourly wages substantially. Health, in the form of life expectancy, has been shown in many cross-country growth regressions, and researches generally find that it has a significant positive effect on the rate of economic growth. However, these regressions do not sufficiently point out whether health directly benefits growth or whether it is merely a proxy for other absent or miss measured factor. There are quite influential body of microeconomic facts that preserves many of these impacts. The findings of historical findings suggest a very strong relationship between health and economic growth. It finds that between one third and one half of England’s economic growth in the past 200 years is due to improvements in the population’s food consumption. The existence of an impact of health on economic growth with similar magnitudes has been verified for different time dimensions and countries, which include Latin America and Mexico, as described as, Cross-country macroeconomic studies suggest that health positively affects growth. For example, an increase in life expectancy from 50 to 70 years, a 40% increase would raise the growth rate by 1.4 percentage points per year. A 10% decrease in malaria is associated with an increased annual growth of 0.3% 2. In the same vain malnutrition causes a decrease in the annual GDP per capita growth worldwide of between 0.23 and 4.7% For Latin America and the Caribbean, health, measured as the probability of surviving to the next age group, has a strong long-term relationship with growth also Using life expectancy and mortality rates as health indicators for different age groups, an estimate of the direct relationship between health and growth in Mexico from 1970-1995 indicates that health is responsible for approximately one third of long-term economic growth. Looking at studies on nutrition and that childhood health in general are important determinants of academic achievement. It shows (using the innovative instrument for life expectancy of predicted mortality based on cause of death data) that between 1940 and 1980 improvements in life expectancy did not contribute to the increase in GDP per capita growth across this same period.

The analysis of the impact of health improvements on economic growth has been well examined since Kelley (1988) found result that population had not impact on economic growth. This led to a flurry of research looking at demographic variables and their effect on economic growth (for example Bloom et al., 2004; Webber, 2002). The results have been mixed. But all studies focus on the single line equation of the direct effect of health on economic growth. In this project the main aim is to investigate the role of health on economic development. In doing so my inspiration was derive for the augmented neoclassical theoretical firm work base on the hypothesis that health has a positive impact on economic growth, looking at specification 1 and 4 are basic linear regression model which are used to capture the liner relationship between health and economic development. And looking at the graphs from our “appendix” we will observe a strong positive correlation between the variables. We also used life expectancy as a proxy for health which was positive and significant across all specification, which affirms that’s health have a positive and significant impact on economic growth as well as output per capita. For specification 3 and 6, we ran a “flexmix” which gives a reflection of a conclusion that our data most not be “cluster”, this is also supported by the pair wise plot which actually shows no meaningful cluster at a visual inspection.

The impact of health on development is actually split in to two dimension which are on the domain of theoretical and empirical studies. In the empirical literature 1310 focus on the labor productivity effects of health on economic growth where improvements in health lead to an increase in per capita income directly as each individual is able to produce more per unit of labor input. The theoretical models, however, explore the relationship between health and economic growth via an indirect incentive impact on education investment 89 are among the first to attempt to bridge the gap of the theoretical and empirical work in a cross country empirical study. Bloom et al. (2004) provide a summary of findings of various researchs that use life expectancy as a proxy for health in the analysis of the direct impact of health on economic growth. Transversely the researchs they actually cite 567 life expectancy was shown to have a positive and significant impact on economic growth. Also in the same vain Barro and Lee (1984) show that life expectancy has a significant positive impact on economic growth, in this project we want to look at the impact of health on development, with an initially hypothesis that health has a positive impact on economic growth.

This Project work investigates the relationship between health and economic growth for a sample of 182 countries within the span of 1950-2017. To my knowledge, this is the first study of Health on economic growth employing technique to verify if our data must be “clustered” or not. The investigation in conducted in line with the Barro-type cross-country regression model, taking inspiration from the augmented neoclassical growth theoretical framework. Based on the hypothesis that health affect economic growth under differing levels of conditions, our empirical models include both employment and human capital, and employment square. The sample of countries comprise 182 countries based on data availability, well above the 23 sub-Saharan African countries in jorbateh (2019) and limited ECOWAS countries. 11

On the planks on better methodology and larger set of a sample of countries, this project broadly shows that, in line with theoretical models, the individual effects of health, employment and human capital on per capita economic growth is significantly positive. Our findings have a paramount policy implication, while policies that promote health and human capital development may be advanced in order to harness better economic growth in the region.

Further studies will benefit from investigating other dimensions of health care system such as access and efficiency or data on medical institutions and access to medication. In this line, exploiting recent data on overall health care system, medical institutions, and Inequalities that exist in healthcare and medicine could be interesting, further studies can be conducted along the line of endogenous threshold methods like panel threshold regression model (PSTR) or dynamic panel threshold model. Finally, further studies may be conducted on the correlation between the quality of patient service and revenue for both African and European countries.