2019, Volume 72 - Issue 3
RSS feed citation: At RePEc
Publication date: 26 August 2019
THE PHILLIPS CURVE: UNEMPLOYMENT DYNAMICS AND NAIRU ESTIMATES OF POLAND’S ECONOMYRead the article
A LINK OF UNEMPLOYMENT RATE BETWEEN TAIWAN AND THE UNITED STATESRead the article
HIGHER EDUCATION AND ECONOMIC GROWTH: A COMPARATIVE ANALYSIS OF WORLD REGIONS TRAJECTORIESRead the article
Mduduzi BIYASE, School of Economics, University of Johannesburg, South Africa
Mokgadi MALEKA, School of Economics, University of Johannesburg, South Africa
The objective of this paper is to examine the association between life expectancy and economic growth in a sample of 10 Southern African Development Community members for the period 1985-2017. To account for unobserved country-level heterogeneity we employ the fixed effect estimator. We also use fixed effects two-stage least squares (FE-2SLS) estimator to account for a possible endogeneity bias due to reverse causation between life expectancy and economic growth. Using the fixed effect we find that life expectancy, democracy, and population have the expected positive impact on economic growth. The results are robust to addressing the potential reverse causality between life expectancy and economic growth, controlling for additional variables (such as inflation, trade openness, and government expenditure), and altering the sample of countries (i.e. excluding South Africa from the sample) in the estimation. The estimates from this paper suggest that improving health conditions in the Southern African Development Community can be effective and should continue to be a major focus of policy makers in this region and other developing regions.
SADC, Endogeneity, Economic Growth, Fixed Effect, Life Expectancy
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