Industrialization, Economic Growth, and Health Status in Ghana

Abstract

ABSTRACT Changes and issues surrounding standards of living, fertility rates (increasing fertility rate) and high levels of mortality have an effect on the decision of couples. Knowledge about the mortality rate and changes in standards of living influences the decision making of couples. The research aimed to identify the association that exist amongst industrialization, health status and economic growth. The study used vector error correction model and impulse response function to analyze the data. The findings showed that there is an upward association between industrialization and economic growth in the long run. The vector error correction model output showed that there is a positive association between life expectancy rate and GDP growth rate as well as agricultural sector. The findings of this study confirm the Preston Curve model by obtaining a positive relationship between GDP growth rate and life expectancy. The impulse response shows that GDP growth rate does not show an upward or downward continues change when there is a shock life expectancy rate. The research commends that government must ensure the three sectors of the economy perform well and invest in better health systems and other infrastructures that improve the health system in the country since poor health status will lead to a fall in the GDP growth rate.