Impact of Health on Productivity Growth in India

Full Text	Pdf
Author	Sanjoy Saha
ISSN	2225-7217
On Pages	303-312
Volume No.	2
Issue No.	4
Issue Date	July 01, 2020
Publishing Date	July 01, 2020
Keywords	Human Development, Growth Accounting Method, Total Factor Productivity, Granger Causality Test.

Abstract

Health is a very essential component of human development because healthy workers are more productive. Using the conventional growth accounting method the study first estimates the aggregate TFP growth for the Indian economy. It examines the impact of health on TFP growth for the Indian economy. It has been observed that TFP growth in India has been fluctuating in nature. Granger Causality tests show that there is a one way relationship between health as captured by life expectancy at birth and TFP growth for Indian economy. The regression analysis reveals that improvement of health condition as measured by life expectancy at birth in India affects TFP growth positively and significantly. Therefore, the study suggests that government should invest more to deliver better health care facilities which would further help in enhancing the productivity of the economy.

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