Physical Investment, Health Investment and Income Growth in Africa

Part of the Advances in African Economic, Social and Political Development book series (AAESPD)


This study investigates the relationship between physical investment, health investment and income growth in Africa over the period of 1996–2012. The system generalised method of moment (GMM) panel estimation technique is employed. Empirical analysis is carried out across aggregate Africa data and nine sub-groups namely West, East, Central, Southern, and North Africa; oil and non-oil producer; and high and low populated group of countries.

Results show that on the average physical investment has an overwhelming significant positive relationship with income, while health investment has insignificant positive relationship with income. However, across the different groups of countries, health investment has significant positive relationship with income in West Africa, Central Africa, oil producing, non-oil producing, and high populated. Evidence of conditional convergence among the economies in Africa and all other groups of countries is also found. The study suggests the need for improvement in both types of investment so as to boost income in Africa.


Physical investment Health investment Income GMM Africa 


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Copyright information

© Springer International Publishing Switzerland 2017

Authors and Affiliations

  1. 1.Department of EconomicsFaculty of the Social Sciences, University of IbadanIbadanNigeria
  2. 2.Department of EconomicsMcPherson UniversitySeriki-SotayoNigeria

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