Global Health and the Economy

Recent fluctuations in economic conditions around the world have triggered an academic interest in the effects of economic conditions on indicators of health. Long-run global health issues are of specific interest considering the fact that the world is at an increasing risk of health threats, such as disease outbreaks, epidemics, industrial accidents, natural disasters, and other health emergencies. This study assesses the role of various macroeconomic determinants and country-level health inputs in affecting health outcomes across countries. Specifically, using data from 1960 to 2010 on 198 countries, this study analyzes the effects of per capita Gross Domestic Product (GDP), foreign direct investment (FDI), population density, food supply, education, health care, and employment on measures of mortality and morbidity. These outcomes include the average death rate, life expectancy, infant mortality, obesity, and cholesterol in a country. Both ordinary least squares and fixed effects methodologies are employed to account for unobserved heterogeneity across countries and capture within-country differences. Estimates provide some evidence that, while per capita GDP is often associated with improved health across countries, it is not obvious that changes in GDP are directly correlated with changes in health within a country. Higher per capita GDP is associated with higher obesity rates, both across and within a country. Population density is generally linked to improved health, and total food supply is associated with higher obesity and cholesterol among females. Vegetable food supply is associated with lower death rates.