The Connection Between Investing in Health and Achieving Economic Growth

The Connection Between Investing in Health and Achieving Economic Growth

Length: 1682 words (4.8 double-spaced pages)

Rating: Term Papers

Open Document

Essay Preview

Contrary to the well recognized and studied causality running from economic growth to health, this study will present evidence of the reverse causation - from health to economic growth. The processes and connections that trigger the relationship between investment in health and the achievement of economic growth will be observed. The study will go through a review and an analysis of the effects that health investment has on economic growth and the economic rationale for investing in health. There are going to be some analysis and studies of the contribution of health to wealth and societal well-being, how better health serves as a predictor of economic growth and the degree to which economic growth is explained by health expenditures in Albania. The estimated model will be offered by all fundamentals of regression analyzes which will identify the relation between health expenditure per capita in Albania and GDP per capita in order to show if there is any correlation between those two variables. All the data are taken by World Bank for the period of 1995 to 2011. After reasonable analysis, it will be demonstrated that there is a strong relationship between investment in health and economic growth. Based on the evidence and analysis of this paper, health expenditures should be considered as an investment tool toward the achievement of economic and social goals.
Keywords: Health, Investment, Economic Growth, GDP per Capita, Disease, Human Capital, Income, Productivity.
JEL Classification: I15, H51


1. Introduction
Health is an invaluable asset for human beings. Being healthy and living a long life are the most important goals of every individual. Good health has a significant importance for human existence and is a very important so...


... middle of paper ...


...econd or in studying how GDP per capita varies with changes in health expenditure per capita. The data for the regression are taken from World Bank database and Figure 1 shows the values of the two variables in Albania over the period 1995-2011.
Rivera and Currais estimated the relationship between health and economic growth of The Organization for Economic Co-operation and Development (OECD) member countries over the period 1960-1990 and showed that countries with higher health expenditures had higher economic growth .
Other authors have also made research on the impact of health expenditures on economic growth. A study in thirty-three developing countries over the period 1990-1998, using the generalized Solow growth model and panel data model, resulted in a positive and significant impact of health expenditure on economic growth. (Mojtahed and Javadipour, 2004).



Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Evaluation of Health System Verses Performance Essay

- According to Neuhauser (1990) performance refers to attaining the set goals within an organization. It entails a process where members of staff working towards achieving the business objectives within the set parameters. It’s a collective approach that can be used by management in the organization to appraise the staff and ascertain workers the processes available are able to do what the firm has set to provide quality service. It involves bringing into line the managerial goals with the workers' established actions, proficiency, capability, experience, requirements, growth strategies and the deliverance of outcomes....   [tags: Health Systems, Organizations, Management]

Term Papers
1294 words (3.7 pages)

Essay about Achieving Our Health Goals

- You 'll No Longer Feel Stuck with Your Health Goals If You Learn This Trick Achieving our health goals can feel like a downright battle against our bodies. Even with all will in the world at the beginning, a lack of progress is a huge source of demotivation. Yet if we are to reach and surpass our health goals we are going to need to suck up all the motivation we can get along the way. More often than not, this happens because you have set yourself up for failure from the start. By setting incredibly ambitious goals and deadlines is going to be an uphill struggle the whole way....   [tags: Health, Nutrition, English-language films]

Term Papers
830 words (2.4 pages)

China 's Economic Growth, And Compact Connection Within International Trade

- After the Open-door policy had been circulated, China has become a country relies on export-led economic growth, and compact connection within international trade. When the external environment is influenced by the global financial crisis, especially the U.S; it will also have a negative impact on the Chinese export. When the effect of the export trade has declined even expired, who will be the future engine of China’s economy. The Entrepreneurs, which are the new future of China’s economic growth, With the change of the external economic environment, the central government reform of the market via publishing new policies within recent years....   [tags: Economics, Economy, Economic growth]

Term Papers
1208 words (3.5 pages)

What are the Challenges for Indonesia in Achieving Universal Health Coverage

- There are many reasons why countries put their effort towards universal health coverage. Universal health coverage is perceived as the assurance that all people will be able to access health services without experiencing financial difficulties (WHO, 2010). The World Health Organization (WHO) put this issue as one of the global health priorities since 2005, when a resolution on universal health coverage emerged during the 58th World Health Assembly (WHA) (World Health Assembly, 2005). Seven years later, global awareness of universal health coverage culminated when the Director-General of the WHO underlined the importance of it as "the most powerful concept that public health has to offer (Cha...   [tags: WHO, low income countries, health]

Term Papers
1463 words (4.2 pages)

Essay on Nutrition Is Necessary For Health And Growth

- Three Day Diet Analysis Nutrition is needed by everybody. It is the process of providing or obtaining the food necessary for health and growth. The United States Department of Agriculture created a ChooseMyPlate.gov to help individuals choose wisely regarding their diets. Unfortunately, many individuals still do not know how to choose a well-balanced diet and I am guilty of that. Healthy eating is not about strict dietary limitations, staying unrealistically thin or depriving ourselves of the foods that we love....   [tags: Nutrition, Health, Food, Food guide pyramid]

Term Papers
1066 words (3 pages)

Essay The Ideal Intervention Method for Colleges

- A recent study conducted by the American College Health Association characterized 38.7% males and 26.1% females in college as overweight or obese. (Reed et. al 298) As much alarming a situation it is, it could also raise questions of validity whether college is the actual reason of this situation. Results from a prospective longitudinal study acknowledge this doubt, and suggest that men and women in their first year of college gain weight more rapidly than the average American at the same age. (Holm-Denoma et al....   [tags: nutritional education, health, obesity]

Term Papers
2462 words (7 pages)

What Does It Mean For Tomorrow? Essay

- Living for tomorrow; even though tomorrow is not guaranteed to us, in the long run planning for the future is a wise decision. But what does it mean to live for the future. How can someone prepare for the unknown. Preparing for tomorrow can be a series of things. From healthy living and exercising, educational goals, and helping securing our freedom today for a better tomorrow. It is easy for society to become self-indulge and live in the day to day not worrying about what tomorrow holds. Especially the young adults that believe they have all the time in the world to plan for tomorrow, but the truth of the matter is the sooner we invest in our future the more prepare we will be....   [tags: Nutrition, Health, Academic degree]

Term Papers
1519 words (4.3 pages)

Past Health Insurance Industry Growth Factors Essays

- Past Health Insurance Industry Growth Factors Multiple variables including employment, legal, and advance medicine factors contributed to past growth that the health insurance industry experiences. Employment Post world war II, the chance of attracting talented workers back into the workforce is scarce. Many lives and talents were lost in the war and the unemployment rate skyrocketed. Employers were left to fight over a small pool of talents (“Shift to Employer-Based,” n.d). In order to attract the best workers, employers were pressured to increase wages....   [tags: Health insurance, Health care, Health economics]

Term Papers
1928 words (5.5 pages)

Essay on The Failure of the Global South in Achieving Economic Growth

- The Failure of the Global South in Achieving Economic Growth 'The law of the strongest is often the only law'[1] This is one of the many factors highlighted by the Fair Trade Organisation. The fair trade organisation is one of the components that help to explain the economic split between the global north and south. Other components such as corporate responsibility, globalisation or Americanisation and capitalism are also all components that can help to asses how much involvement the west have for the economic split between the global north and south....   [tags: Papers]

Term Papers
2283 words (6.5 pages)

Muscle Growth Essay

- Muscle Growth With the introduction of such modern conveniences such as the automobile, remote control, and even the electric toothbrush people are relying on technology to do everything for them. With a generation growing up in todays society physical tasks have almost become obsolete. Tasks such as even going shopping and going out to visit a friend can be done from the comfort of your own computer. With this sedentary lifestyle, muscular size will almost be unnecessary, except for the athlete who wants to succeed in sports....   [tags: Muscle Growth Physiology Health Essays]

Term Papers
2504 words (7.2 pages)