Economic Growth and Health: a Comparative Study of the EU Countries

Abstract

IntroductionOver last several decades, it has become common to emphasize role of intangible forms of capital as an economic development factor. By accepting assumption that condition constitutes an element of human capital, an analysis of interactions between and economic growth has become subject of theoretical and empirical research. In spite of potentially obvious dependences between condition, living standards in society and efficiency of production factors in macroeconomic scale, there has still been no explicit explanation of this mechanism. In literature, gravity of so-called boundary (initial) conditions within framework of which mechanism is observed is indicated. By assumption, they determine correlation level of variables in model of interactions between and economic growth, which varies for different research samples. No conformity of reaction model that diverges from commonly excepted one is observed first of all in countries with a high level of economic development, where effect of condition improvement as a result of an increased level of national product is not so self-evident.The purpose of present study is analysis of relations that occur between economic development level of national economies and condition of societies. Attention focuses on indicating existing dependences in this area, ones which are observed in European Union member states. An attempt is made to identify differences that occur in this area on level of economies of so-called old and European Union.The research was based on data available on level of NUTS 1 that describes condition of society in individual states. Due to assumed scope of analysis, indices that define life expectancy (LE) and predicted healthy life years (HLY) were accepted as dependent variables. In assessment of impact of production capacities on the capital of health of economies examined, an index of structure was used that determines participation of predicted healthy life years in life expectancy. In research into relations, a regression analysis was used, and an assessment was performed of degree of correlation between domestic per capita product level and level of dependent variables that describe condition of society in EU economies examined. Due to accepted scope of analysis, empirical data used was obtained from databases of World Bank, World Health Organization (WHO) and Eurostat.1.Health and income: potential linksThe results of theoretical and empirical analysis presented in literature point to a bidirectional relation between and national income level. An increase of resource, similarly as an increase of human capital, constitutes both cause and consequence of economic growth in a given state. The mechanism of impact of economic growth on of population seems obvious: an increase of national income level potentially determines a higher spending level, greater possibilities of education and better food quality. Preston (1975) was one of first ones to examine this relation. He acknowledged that domestic per capita income is an index of total value of final products manufactured in a given economy per capita in a specified period of time. As a consequence, there are no reasons to expect a direct influence of this parameter on level of (mortality) of society. Income should be treated as a measure of pace of an introduction of new products and services in sector of households and enterprises. Its influence is indirect: a higher income offers a possibility of a real increase of consumption of such elements that have an influence on as food, accommodation, public and private healthcare, education, research connected with an improvement of condition (Preston, 1975). …