The Effect of Health on Economic Growth in Namibia

This study presents the findings on the effect of health on economic growth in Namibia. Quarterly time series data, such as Gross domestic product growth, life expectancy at birth (total years), mortality rate-under 5 (per 1000 live births), and Government health expenditure (% of GDP) from 1990Q1 to 2018Q4 were used. Data collected were analysed using the Autoregressive Distributed Lag (ARDL) bounds testing approach for cointegration and the Granger causality test. The findings of the study show a long-run relationship of life expectancy at birth (total years) and mortality rate-under 5 to Gross domestic product growth. On the other hand, the short-run results show no relationship in the mentioned variables. The Granger causality test reveals no short-run causal effect, whereas, in the long-run, the parameter for the error correction term exhibits causality among the variables. The study concludes by providing key policy recommendations intended to improve the health conditions for citizens, which in return ends up contributing to economic growth.