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Health Status, Diseases, and Economic Development: A Cross-Country Analysis

With the help of cross-sectional data from eighteen developing countries, this paper investigates the impact of two health status indices (Under Five Mortality Rate and Life Expectance at Birth) and four different types of diseases (Tuberculosis, Diarrhea, Malaria, and Hepatitis) on GDP, as well as on the growth rate of GDP. The health status indices are found to have an insignificant impact on economic development. Similarly, two of the diseases, Tuberculosis and Diarrhea, are also found to have an insignificant impact. However, the two other diseases, Malaria and Hepatitis, are found to have a significant negative impact on GDP as well as on the growth rate of GDP. The findings of this paper thus imply that a policy aimed at reducing the incidence of Malaria and Hepatitis will promote economic development in developing countries.