Population Health and Economic Growth: Panel Cointegration Analysis in Sub-Saharan Africa

Abstract: The economic performance in Sub-Saharan Africa has been unimpressive, particularly in comparison with other developing regions like East Asia. Using a panel data for 30 Sub-Saharan African countries for the period 1970-2010, this study investigates the extent to which the health of the population affects the economic performance in the region. Employing the theoretical model based on an augmented Solow growth model; we estimate the relationship between population health capital and economic growth in SSA using the newly developed panel cointegration econometric strategy. We find that, health status of the population has not significantly driven economic performance. Accounting for the effect of HIV/AIDS, however resulted in a significant negative effect of population health on economic growth. We find further that, the obverse seems rather plausibly the case, as economic growth significantly increases life expectancy in the region. The results suggest that, other factors affecting growth in the region would indirectly improve on the health status of the population of SSA.