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HEALTH, POVERTY AND ECONOMIC GROWTH: A Survey of Methodological and Empirical Issues and Implications for the Nigerian Economy

HEALTH, POVERTY AND ECONOMIC GROWTH: A Survey of Methodological and Empirical Issues and Implications for the Nigerian Economy

 

Abstract: The role of health in an economy cannot be underestimated and its link to poverty reduction and economic growth has been investigated
comprehensively in the literature using various approaches. These approaches include: (a) micro level studies with emphasis on health inputs, and these studies found that poor health has an economic effect through several channels and that this effect is less evident at a macrolevel;
(b) macro level studies which examined the extent to which differences in health contribute to differences in income by focusing on health outcomes rather than health inputs, and conducting a macroeconomic rather than individual level analysis; (c) cost of illness (COI), disease burden approaches which examined the link between cost of illness, poverty and economic growth; (d) the causality approach which examined the issue of causality between health, poverty and income bearing in mind that the direction of causality goes a long way in determining whether or not policy makers should focus on economic growth first or health. This paper provides a survey of these studies with their associated empirical issues and its implications for the Nigerian
economy.

JEL classification: I1, I3, O1, O4

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