Do Human Capital Investment and Technological Innovation Have a Permanent Effect on Population Health? An Asymmetric Analysis of BRICS Economies.

Gang-Gao Hu,Li-Peng Yao

doi:10.3389/fpubh.2021.723557

Gang-Gao Hu, Li-Peng Yao

Open Access

https://doi.org/10.3389/fpubh.2021.723557

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Abstract

This study examines the asymmetric impact of human capital investment, and technological innovation on population health from the years spanning from 1991 to 2019, by using a panel of the BRICS countries. For this purpose, we have employed the PMG panel NARDL approach, which captures the long-run and short-run dynamics of the concerned variables. The empirical results show that human capital investment and technological innovation indeed happen to exert asymmetric effects on the dynamics of health in BRICS countries. Findings also reveal that increased human capital investment and technological innovation have positive effects on health, while the deceased human capital investment and technological innovation tend to have negative effects on population health in the long run. Based on these revelations, some policy recommendations have been proposed for BRICS economies.

Highlights

In its true essence, the demand theory suggests that consumers are used to ranking different mixtures of goods and services that they typically purchase on the basis of their individual utility function
When a person attains formal education, this process helps them in acquiring the mind-set that makes them much psychologically stronger in tough situations, and helps them solve problems that come in their way in a more informed and calculated manner
The findings of these tests show that only a few variables are level stationary, and while a further few are stationary at the first difference

Summary

Introduction

The demand theory suggests that consumers are used to ranking different mixtures of goods and services that they typically purchase on the basis of their individual utility function. According to this theory, consumers purchase those combinations of goods and services that increase their utility to the highest level, by optimally utilizing their income. Education is defined as human capital primarily because it develops the productive capacity and increases the skill level of the people [2, 3]. Researchers have suggested that formal education promotes and modifies the general skills and abilities of the people, rather than focusing on a specific purpose.

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