The Effect of Health on Economic Growth: Threshold Evidence from Selected Asian Countries

Abstract

This paper dealing with the role of health in moderating the productivity-growth effect in Asian countries. Panel threshold regression analysis proposed by Hansen (1999) are employ to assess the hypothesis of study. This methodological technique is selected due to the fact it’s miles bendy sufficient to house the opportunity that the effect of TFP “accelerate” most effective after host nations have accomplished a sure stage of health situation. The finding result shows that there’s a threshold impact within side the TFP-growth relationship such that the high quality effect of TFP accelerate handiest after host nations gain a positive stage situation of employee health. This locating is constant with the view that host nations have to have absorptive potential in an effort to gain from TFP. Therefore, policymakers need to weigh the value of regulations aimed toward making sure the health of the employees to be taken into consideration in order for the first-class and productiveness of the employees to growth as a health has a first-order effect on economic boom.