Role of Health in Economic Development of India

Abstract

The ways that developed countries' economi c growth is impacted by health.It is common ly known that there is a positive crossnation al link between health and economic growth, but it is challenging to understand the under lying mechanisms. There are three main con cerns. First, it is empirically difficult to deter mine and decipher the causal relationship between health and economic growth.Second as an e conomy develops the relationship between h ealth and economic growth evolves. First, the nature of the relationship between health and economic growth is unclear, both due to bidirectional causality between the two variables and confounding factors. A growing body of literature seeks to identify at least partial causal channels: for example, Pritchett and Summers (1996), Bloom and Canning (2000), Bloom, Canning, and Sevilla (2003), and Bloom and Fink (2014) focus on a channel that leads from health to income and growth, while Cutler, LlerasMuney, and Deaton (2006) and Hall and Jones (2007) describe the opposite channel. Third, various aspects of health (mortality vs The substantial complementarity between morbidity, women's and children's health, a health and education further complicates this nd older age- task (e.g., Becker, 2007), with education related health) may have various economic i showing the same bidirectional causality mplications. with income. This issue is illustrated by Lutz