Study of the relationship growth-health-poverty empirical validation for the South Shore Country the Mediterranean

Abstract EN

This paper aims to study from empirical observations interaction between health and economic growth to reduce poverty.

To investigate this question, a model of simultaneous equations was developed to endogenous economic growth and to assign the quality of poverty.

Using data from a sample of five countries on the southern shore of the Mediterranean during the period 1992-2014, the results provide evidence of a positive association between health and economic growth on the one hand, and a positive association between improvement health and poverty reduction on the other.

Thus, the total impact of life expectancy on poverty is equal to - 0.705 sum of the direct and indirect impact.

We improve life expectancy by 10% resulting in lower rates of poverty -7.05%.

Furthermore, equation (1) shows that increasing the index that measures income inequality a unit causes an increase in poverty in an amount equal to 0.82.

Similarly the equation (2) shows that the increase in inequality of a unit may induce GDP growth decreased -1.08 which means that even the influence of income inequality n ' is also limited to its direct effect on poverty, but also incorporates indirect impact linked to the evolution of GDP.

We notice a total impact of income inequality on poverty reduction.

According to the calculation any increase in the index of inequality of income 10% results in a rate of increase in poverty by 9.7%.

We also note that improving health is the indispensable vehicle for poverty reduction.

Keywords: economic growth, health, poverty, life expectancy, Income inequality, simultaneous equations, panel data.