The economic impact of disease on human resources: a cross-country study
by Juan J. DelaCruz
International Journal of Behavioural and Healthcare Research (IJBHR), Vol. 1, No. 4, 2009

Abstract: Health status has played an important role in recent developments of the economic literature. The two-way relationship between health and economic performance has a mechanism of transmission that is explained by their impact on labour productivity (human resources) and potential output. This paper reviews the literature on growth theory, analyses the importance of human capital and portrays the role of health as a determinant of economic performance. This survey also introduces the impact of a particular disease, HIV/AIDS, on human resources. It includes empirical work explaining the interrelationship of health and income per capita, which is measured using a multivariate framework controlling for other background variables. Good health improves economic performance whereas ill health (using HIV prevalence as a proxy) deteriorates human capital, negatively affecting income per capita across countries.

Online publication date: Thu, 11-Mar-2010

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