Economic Growth and Health A CASE STUDY OF SUB SAHARAN AFRICA

Abstract: This paper examined the nexus between health care expenditure and economic growth in Sub-Saharan Africa. It is widely acknowledged that health is a type of human capital and a critical factor in the process of economic growth. Health production, in turn, is a major determinant of health outcomes. While the former relationship has been extensively researched in developed countries, very few studies have attempted to investigate this relationship in developing countries, particularly Sub-Saharan Africa (SSA). Furthermore, very few studies have been conducted in SSA to investigate the relationship between health determinants, health outcomes, and economic growth. This study takes on the challenge of investigating this three-way relationship for SSA countries. Different variables like population, saving and foreign direct investment were found to be statistically significant determinants of economic growth using the Arellano-Bond Dynamic GMM technique for 26 SSA countries, while food availability were found to be significant determinants of life expectancy. On the other hand, none of the health indicators are significant determinants of economic growth in the region, implying that health outcomes must be improved in order to have a significant impact on growth. The findings should prompt immediate policy changes to harmful indicators in order to better stimulate health-led economic growth in SSA.