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

Abstract

The article investigates the extent to which the health of the population affects the economic performance using panel data for 30 Sub-Saharan African countries for the period 1970–2010. Using a theoretical model based on an augmented Solow growth model, the authors estimate the relationship between population health capital and economic growth in Sub-Saharan Africa using panel cointegration econometric strategy. They find that the 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. Furthermore, the obverse seems rather plausibly the case, as economic growth significantly increases life expectancy in the region.