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Srl | Item |
1 |
ID:
123867
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Publication |
2013.
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Summary/Abstract |
A frequent empirical approach toward examining the impact of health on economic growth has been to focus on data for a cross-section of countries and to regress the income indicator on the health indicator controlling for the initial level of income and for other factors believed to influence steady-state income levels. From the methodological perspective, such a growth regression approach has mainly offered evidence for the relationship between health and income, using cross-country macro-level data. This article contributes to existing empirical research by introducing within-country regional-level analysis using three rounds of the Demographic and Health Surveys of Bangladesh, combined with corresponding geo-referenced global positioning system (GPS) data, to estimate the contribution of life expectancy to economic well-being. The joint evolution of the regional-level longevity and wealth indicator obtained from the micro-data corroborates Preston's cross-country macro-level findings. Also, the finding that a 1 per cent increase in life expectancy leads to about 3 per cent increase in the wealth index corroborates the findings of several macro-regression studies and promotes the concept of direct investments in health.
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2 |
ID:
142824
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Summary/Abstract |
In Bangladesh, where tobacco use is pervasive, reducing tobacco use is economically beneficial. This article uses the latest Bangladesh social accounting matrix (SAM) multiplier model to quantify the economy-wide impact of demand-driven changes in tobacco cultivation, bidi industries and cigarette industries. First, we compute various income multiplier values (i.e., backward linkages) for all production activities in the economy to quantify the impact of changes in demand for the corresponding products on gross output for 86 activities, demand for 86 commodities, returns to 4 factors of production and income for 8 household groups. Next, we rank tobacco production activities by income multiplier values relative to other sectors. Finally, we present three hypothetical ‘tobacco-free economy’ scenarios by diverting demand from tobacco products into other sectors of the economy and by quantifying the economy-wide impact. The simulation exercises with three different tobacco-free scenarios show that, compared to the baseline values, total sectoral output increases by 0.92, 1.3 and 0.75 per cent. The corresponding increases in the total factor returns (i.e., gross domestic product, GDP) are 1.57, 1.75 and 1.75 per cent. Similarly, total household income increases by 1.40, 1.58 and 1.55 per cent.
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