Significance of the Study of Health Economics

  • Keya Sengupta


Development of a nation is crucially connected with the condition of health of its people, and health is now been accepted as an important determinant of economic development of a nation. It is only a nation with a healthy labour force who has the ability and the capability to undertake the task of expediting the growth and development of the economy. According to Development Economists, health condition of the people is also one of the important ends of all developmental efforts. Impressive achievement in the health sector has paved the way for excellent record not only in the level of economic development as revealed by the experience of most nations, but in human development as well. This has been the experience of the South East Asian nations as well as the Nordic nations. Inadequate and unplanned investment in the health sector results in frequent break out of epidemics and deaths, which can seriously retard the current and the future growth potentiality of those nations. Such has been the unfortunate experience of some of the African nations.


Health Service Health Care Service Health Sector Health Expenditure Health Management 


  1. Arrow KJ (1963) Uncertainty and the welfare economics of medical care. Am Econ Rev 53:941–973Google Scholar
  2. Barro R (1996) Health and economic growth. Mimeo, Harvard University, CambridgeGoogle Scholar
  3. Bloom D, Canning D (2000) The health wealth of nations. Science 287:1207–1208CrossRefPubMedGoogle Scholar
  4. Bloom DE, Canning D, Sevilla J (2001) The effect of health on economic growth: theory and evidence. Working paper. National Bureau of Economic Research.
  5. Bryant J (1969) Health and the developing world. Cornell University Press, IthacaGoogle Scholar
  6. Commission on Macroeconomics and Health (2010) Macroeconomics and health: investing in health for economic development. WHO, GenevaGoogle Scholar
  7. Denison EF (1967) Why growth rates differ: post war experience in nine western countries. Brookings Institutions, Washington, DCGoogle Scholar
  8. Eike HWK (2007) Resource allocation in healthcare. Med Gen Med 9(1):57Google Scholar
  9. Feldstein MS (1967) Economic analysis for health service efficiency: econometric studies of the British national health service. North Holland, AmsterdamGoogle Scholar
  10. Folland S, Goodman AC, Stano M (2009) The economics of health and health care. Pearson, Prentice HallGoogle Scholar
  11. Human Development Report (2011) UNDP. New York, Palgrave MacmillanGoogle Scholar
  12. International Health Regulations (2005) Strengthening health security by implementing the international health regulations. WHO, LyonGoogle Scholar
  13. Lindsay Cotton M (1969) Medical care and the economics of sharing. Economica 36(144):351–362CrossRefGoogle Scholar
  14. Mathew GK (1971) Measuring need and enhancing services. In: McLachlan G (ed) Portfolios for wealth: the role and programme of the DHSS in health services research, sixth service. Oxford University Press for Nuffield Provincial Hospital Trust, LondonGoogle Scholar
  15. McPake B, Kumaranayake L, Normand C (2002) Health economics-an international perspective. London, New YorkCrossRefGoogle Scholar
  16. Muskin SJ (1962a) Health as an investment. Part-2 Investments in human being. J Polit Econ 70(5):129–157Google Scholar
  17. Muskin SJ (1962b) Health as an investment. J Polit Econ 70:129–157Google Scholar
  18. Myrdal G (1968) Asian drama “an enquiry into the poverty of nations“. Pantheon, New YorkGoogle Scholar
  19. Narayan S (2010) Investigating the relationship between health and economic growth, empirical evidence from a panel of 5 Asian countries. J Asian Econ 21:404–411CrossRefGoogle Scholar
  20. Sala-I-Martin X (1997a) I just ran four million regressions, Working paper, no 6252. NBER, Cambridge, MACrossRefGoogle Scholar
  21. Sala-I-Martin X (1997b) I just ran two million regressions. Am Econ Rev Pap Proc 87(2):178–183Google Scholar
  22. Savedoff WP, Schultz TP (2000) Wealth from health. Inter-American Development Bank, Washington, DCGoogle Scholar
  23. Schultz P (1999a) Health and schooling investments in Africa. J Econ Perspect 13930:67–88CrossRefGoogle Scholar
  24. Schultz P (1999b) Productive benefits of improved health: evidence from low income countries. Yale University, HartfordGoogle Scholar
  25. Schultz P (2002) Formation of human capital and the economic development of Africa “Returns to health and schooling investments”. Working paper series 171, African Development BankGoogle Scholar
  26. Schultz P, Tansel A (1992) “Measurement of returns to adult health”. Morbidity effects of wage rate in Cate d’Ivoire and Ghana, Discussion paper no 663. Yale University, Economic Growth Centre, New HavenGoogle Scholar
  27. Sen A (1998) Mortality as an indicator of success and failure. Econ J 108:1–25CrossRefGoogle Scholar
  28. Sen A (2001) Economic progress and health. In: Leon D, Watt G (eds) Poverty, inequality and health: an international perspective. Oxford University Press, OxfordGoogle Scholar
  29. Sengupta K (2009) Genesis of human development in North East India. Concept, New DelhiGoogle Scholar
  30. Sengupta K (ed) (2010) Multi-dimensional approach to human development. Concept, New DelhiGoogle Scholar
  31. Shastry GK, Neil DN (2003) How much of cross country income variation is explained by health? J Eur Econ Assoc 192(3):387–396CrossRefGoogle Scholar
  32. Sorkin AL (1977) Health economics in developing countries. “An Economic Perspective”. Lexington Books, LexingtonGoogle Scholar
  33. Strauss J, Thomas D (1998) Health, nutrition and economic development. J Econ Lit 36:766–817Google Scholar
  34. Todaro MP, Smith SC (2003) Economic development. Pearson, Delhi, IndiaGoogle Scholar
  35. Weil DN (2005) Accounting for the effect of health on economic growth. Q J Econ 122(3):1265–1306,08CrossRefGoogle Scholar
  36. WHO (1947) World Health Organisation Act, 1947, First ScheduleGoogle Scholar

Copyright information

© Springer India 2016

Authors and Affiliations

  • Keya Sengupta
    • 1
  1. 1.Indian Institute of ManagementShillongIndia

Personalised recommendations