Diseases and Economic Performance: Evidence from Panel Data

  •  Norashidah Mohamed Nor    
  •  Abdalla Sirag    
  •  Wency Bui Kher Thinng    
  •  Salisu Ibrahim Waziri    


The current study aims to estimate to what extent economic performance is affected by different types ofdiseases. Particularly, we intend to examine the impact of diseases such as dengue, TB and HIV on GDP percapita in selected Southeast Asian countries. The panel data analysis and cointegration estimation technique areadopted to achieve the objectives of the study. The findings reveal that the variables move together in thelong-run, and the results confirmed by three cointegration tests: Johansen-Fisher, Kao and Pedroni. Additionally,the coefficients estimated using FMOLS and confirmed by DOLS. Most importantly, it has been shown thatshocks to human capital (diseases) have a large adverse impact on economic performance, especially; dengue,TB and HIV. The second major finding was that the role of human capital is found to be very crucial expressedby education and labor. The findings of this study suggest that reduction of diseases can lead to considerableimprovement in economic performance.

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