Standards of living and health status: the socioeconomic determinants of life expectancy gain in sub-Saharan Africa

Keita, Moussa (2013): Standards of living and health status: the socioeconomic determinants of life expectancy gain in sub-Saharan Africa.

Abstract

Using a panel dataset on 45 sub-Saharan Africa countries (SSA), this study analyzes empirically the socioeconomic determinants of life expectancy gain (considered as an indicator of global health improvement at country level). In order to treat heterogeneity and endogeneity concerns, we use multiple estimation methods including pooling, fixed-effect, long difference and system GMM. Our analyses show that income is critical for health enhancement. Particularly, we find that GDP per capita is strongly and positively correlated with life expectancy gain. Furthermore, variables such as adult literacy, access to improved sanitation and safe water appear positively correlated health gain. In contrast the high incidence of extreme poverty is negatively correlated with heath gain while the impact of income inequality seems ambiguous.

• Item Type: MPRA Paper
• Language: English
• Keywords: Standards of living, health, life expectancy at birth
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C12 - Hypothesis Testing: General; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation; I - Health, Education, and Welfare > I1 - Health > I11 - Analysis of Health Care Markets; I - Health, Education, and Welfare > I1 - Health > I12 - Health Behavior

References

relationships between GP characteristics and mortality rates”. Journal of Health Economics, 25, 1139-1153.

Acemoglu, Daron, and Simon Johnson, (2005), “Disease and development: the effect of life expectancy on economic growth,” Department of Economics, MIT, July 2005.

Anand, S and M Ravallion (1993), “Human Development in Poor Countries: On the Role of Private Income and Public Services”, Journal of Economic Perspectives, 7(l):133-150.

Anand, S. & Barnighausen, T. (2004). “Human resources and health outcomes: cross-country econometric study”. Lancet, 364, 1603-9.

Arellano, M. & Bond, S. (1991). “Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations”. Review of Economic Studies, 58, 277–297.

Baltaji, Badi H. (1995). “Econometric Analysis of Panel Data”. Chichester: John Wiley and Sons.

Blundell, R. & Bond, S. (1998). “Initial conditions and moment restrictions in dynamic panel data models”. Journal of Econometrics, 87, 115-143.

Blundell, R. & Bond, S. (2000). “GMM Estimation with persistent panel data: an application to production functions”. Econometric Reviews, 19, 321 - 340.

Bokhari, F. A. S., Gai, Y. & Gottret, P. (2007). “Government health expenditures and health outcomes”. Health Economics, 16, 257-273.

Bond, S. (2002). “Dynamic panel data models: a guide to micro data methods and practice”, Portuguese Economic Journal, 1, 141-162.

Davis, DR and JN Kuritsky (1997), “Violent Conflict and Its Impact on Health Indicators in sub-Saharan Africa, 1980 to 1997”, Working Paper

Deaton, A. (2003). “Health, Inequality, and Economic Development” Journal of Economic Literature, 41, 113-158.

Deaton, A. (2006). “Global patterns of income and health: facts, interpretations, and policies”. NBER Working Paper, No.12735.

Deaton, A. and C. Paxson (1999) “Mortality, education, income and inequality among American cohorts”, Princeton University

Easterly, Kremer, Pritchett and Summers (1993). “Good Policy or Good Luck? Country Growth Performance and Temporary Shocks”, Journal of Monetary Economics 32(3):459-84.

Fayissa, B. and Gutema, P. (2005). “Estimating a health production function for Sub-Saharan Africa (SSA)”. Applied Economics, 37, 155 - 164.

Gertler, P. and J. Van der Gaag, (1990), “The Willingness to Pay for Medical Care: Evidence from Two Developing Countries”, Baltimore, Maryland, Johns Hopkins University Press. Published forn the World Bank

Grabauskas, V and R Kalediene (2002), “Tackling social inequality through the development of health policy in Lithuania”, Scandinavian Journal of Public Health, 30:12-19

Grosse Robert N. and Perry Barbara H. (1982), “Correlates of life expectancy in less developed countries” , Health Policy and Education 2 (1982) 275-304

Grossman, M. (1972), “The Demand for Health: A theoretical and Empirical Investigation”, NBER: New York.

Grubaugh, SG and RE Santerre (1994), “Comparing the performance of health-care systems: An alternative approach”, Southern Economic Journal, 60(4): 1030- 1042

Gulis, G (2000), “Life expectancy as an indicator of environmental health”, European Journal of Epidemiology, 1 6(2): 1 6 1 - 1 65.

Hill, MA and EM King (1995), “Women's education and economic well-being”, Feminist economics, l(2):21-46.

Hitiris, T and J Posnet (1992), “The determinants and effects of health expenditure in developed countries”, Journal of Health Economics, 1 1 : 1 73- 1 8 1 .

Kabir Mahfuz (2008) “Determinants of Life Expectancy in Developing Countries”, The Journal of Developing Areas, Vol. 41, No. 2 (Spring, 2008), pp. 185-204

Kalediene, R and J Petrauskiene (2000), “Regional life expectancy patterns in Lithuania”, European Journal of Public Health, 1 0: 1 0 1 - 1 04.

Krishnan, P. (1975). “Mortality decline in India, 1951-1961: development versus public health program hypothesis,” Social Science and Medicine 9: 475 -479.

Levine, Ross, and David Renelt. (1992). “A Sensitivity Analysis of Cross-Country Growth regressions”, American Economic Review 82(4):942-63.

Pampel, F. C., and V. K. Pillai. (1986). “Patterns and determinants of infant mortality in developed nations, 1950–1975”. Demography 23:525–541

Perron P. (1989). "The Great Crash, The Oil Shock and the Unit Root Hypothesis", Econometrica, vol. 57, n° 6, pp. 1361-1402.

Phelps (1997), “Heath Economics”, 2nd edition, Reading Mass : Addison-wesley

Pritchett L. and Summers L.H., (1996). “Wealthier is Healthier”, Journal of Human Resources, University of Wisconsin Press, vol. 31(4), pages 841-868.

Ravallion, Martin & Shaohua Chen, 1996. “What can new survey data tell us about recent changes in distribution and poverty?”, Policy Research Working Paper Series 1694, The World Bank.

Rogers, GB (1979), “Income and inequality as determinants of mortality: an international cross-section analysis”, Population Studies, 33 (3):343-351.

Rogers, RG and S Wofford (1989), “Life expectancy in less developed countries: socio-economic development or public health?”, Journal of Biosociological Science, 2\(2):245-252

Rogot, E, PD Sorlie and NJ Johnson (1992), “Life expectancy by employment status, income, and education in the national Longitudinal Mortality Study”, Public Health Reports, 107(4):457-461

Roodman, D. (2008). “A Note on the Theme of Too Many Instruments”, CGD Working Paper 30 125. Washington, DC: Center for Global Development.

Roodman, D. (2009). “How to do xtabond2: An introduction to difference and system GMM in Stata”. Stata Journal, 9, 86-136.

Rosen S. and Taubman, P. (1982), “Some Socioecono0mic Determinants of Mortality,” in J. Van der Gagg, W.B Neeman and T. Tsukahara, eds., Economics of Health Care: 1982, New York, Preager Publishers.

Smith Lisa C. and Haddad Lawrence, (1999), “Explaining child malnutrition in developing countries: a cross-country analysis” International Food Policy Research Institute

Stolnitz, George J. (1975). “International mortality trends: some main facts and implications,” United Nations, Department of Economic and Social Affairs, The Population Debate: dimensions and Perspectives, Papers of the World Conference, Bucharest, 1974, Volume I. Population Studies

United Nations,(2010), World Population prospects,2010 Revision

Wilkinson, R. G. (1992), “Income Distribution and Life Expectancy”, British Medical Journal, 304:165-68.

Wilkinson, RG (1996), “Unhealthy Societies: The Afflictions of Inequality, Routledge”, London.

World Bank (1993), “World Development Report 1993: Investing in Health”.