The Effect of Trade Openness on Health Indicators in OIC Members

Document Type : Research Paper

Authors

1 Ph.D. Candidate in Economics, Lorestan University

2 M.A in Economics, Mazandaran University

Abstract

Despite its public and non-commercial nature, health sector has been considerably affected by globalization. The present study examines the relationship between trade openness and health indicators using panel data from the Organization of Islamic Countries (OIC) members during the period 1995-2014. For this purpose, a panel co-integration model with cross-sectional dependency and Continuously-updated and Fully-Modified (Cup-FM) method have been used. The results of the model estimation show that trade openness has a positive and significant effect on the health indicators in the OIC members. Also, results show a negative sign of the interaction between trade liberalization and income per capita, which implies that the partial impact of trade openness on health indicators in the OIC members decreases as the income per capita increases.

Keywords


اخوان بهبهانی، علی (1383)، «جهانی‌شدن و سلامت»، فصل‌نامۀ مجلس و راه‌برد، ش 43.
تورانی، سوگند، جمال‌الدین طبیبی، شهرام توفیقی، شهرام شعربافچی‌زاده، و نسرین شعربافچی‌زاده (1390)، «تجارت بین‌المللی خدمات سلامت در کشورهای منتخب آسه‌آن، چالش‌ها و فرصت‌ها»، مدیریت اطلاعات سلامت، ش 4.
حضارمقدم، نسرین، بهرام سحابی، علی‌محمد احمدی، و وحید محمودی (1394)، «بررسی اثر جهانی‌شدن بر شاخص‌های سلامت»، فصل‌نامۀ مطالعات راه‌بردی جهانی‌شدن، ش 16.
جهانگرد، اسفندیار و ناصرالدین علی‌زاده (1388)، «برآورد عوامل اقتصادی ـ اجتماعی مؤثر بر تابع تولید سلامتی در استان‌های ایران»، فصل‌نامۀ نامۀ اقتصادی، ش 75.
سلاطین، پروانه و سمانه محمدی (1394)، «بررسی عوامل مؤثر بر سلامت در استان‌های ایران»، فصل‌نامۀ پژوهش‌های اقتصادی ایران، ش 64.
غفاری‌گولک، مرضیه، لطفعلی عاقلی، علی‌رضا ناصری، و حسین صادقی (1395)، «اثرات ادوار تجاری بر نرخ مرگ‌ومیر در استان‌های ایران»، فصل‌نامۀ سیاست‌گذاری اقتصادی، ش 16.
گل‌خندان، ابوالقاسم و مهدی رستمی (1395)، «جهانی‌شدن؛ فرصت یا تهدیدی برای سلامت؟ (موردکاوی ایران)»، فصل‌نامۀ مدیریت بهداشت و درمان، ش 1.
Alam, M. S., S. A. Raza, M. Shahbaz, and Q. Abbas (2015), “Accounting for Contribution of Trade Openness and Foreign Direct Investment in Life Expectancy: The Long-Run and Short-Run Analysis in Pakistan”, Social Indicators Research, vol. 129.
Bai, J., C. Kao, and S. Ng (2009), “Panel Cointegration with Global Stochastic Trends”, Journal of Econometrics, vol. 149.
Bergh, A. and T. Nilsson (2009), “Good for Living? On the Relationship between Globalization and Life Expectancy”, World Development, 38(9).
Bezuneh, M. and Z. Yiheyis (2014), “Has Trade Liberalization Improved Food Availability in Developing Countries? An Empirical Analysis”, Journal of Economic Development, 39(1).
Blouin, C., M. Chopra, and R. van der Hoeven (2009), “Trade and Social Determinants of Health”, The Lancet, 373(9662).
Blouin, C., J. Gobrecht, J. Lethbridge, D. Singh, R. Smith, and D. Warner (2006), “Trade in Health Services under the Four Modes of Supply: Review of Current Trends and Policy issues”, in: International Trade in Health Services and the GATS: Current Issues and Debates, C. Blouin, N. Drager, and R. Smith (eds.), Washington (DC): World Bank Publications.
Breusch, T. S. and A. R. Pagan (1980), “The Lagrange Multiplier Test and its Application to Model Specifications in Econometrics”, Rev. Econ. Stud, vol. 47.
Burns, D. K., A. P. Jones, Y. Goryakin, and M. Suhrcke (2017), “Is Foreign Direct Investment Good for Health in Low and Middle Income Countries? An Instrumental Variable Approach”, Social Science and Medicine, vol. 181.
Bussmann, M. (2009), “The Effect of Trade Openness on Women's Welfare and Work Life”, World Development, vol. 37.
Chanda, R. (2002), “Trade in Health Services”, World Health Organization, 80(2).
Deaton, A. (2004), Health in an Age of Globalization, Cambridge: National Bureau of Economic Research.
Halicioglu, F. (2011), “Modeling Life Expectancy in Turkey”, Economic Modelling, 28(5).
Hawkes, C. (2007), Globalization, Food and Nutrition Transitions, Geneva, Switzerland: Institution of Population Health, WHO Commission on Social Determinants of Health.
Herzer, D. (2015), “The Long-Run Effect of Trade on Life Expectancy in the United States: An Empirical Note”, Applied Economics Letters, 22(5).
Kawachi, I. and S. Wamala (2006), Globalization and Health, Oxford: Oxford University Press.
Levine, D. I. and D. Rothman (2006), “Does Trade Affect Child Health?” Journal of Health Economics, 25(3).
Lin, F., N. C. S. Sim, and N. Pham (2015), “Child Mortality in the LDCs: The Role of Trade, Institutions and Environmental Quality”, Working Paper, no. 15, School of Economics, the University of Adelaide, Australia.
Mortensen, J. (2008), “International Trade in Health Services Assessing the Trade and the Trade Offs”, DIIS Working Paper, vol. 11.
Nagel, K., D. Herzer, and P. Nunnenkamp (2015), “How Does FDI Affect Health?”, International Economic Journal, vol. 29.
Ovaska, T. and T. Takashima (2006), “Economic Policy and the Level of Self-Perceived Well Being: An International Comparison”, Journal of Socio-Economics, 35(2).
Owen, A. L. and S. Wu (2007), “Is Trade Good for Your Health?”, Review of International Economics, 15(4).
Papageorgiou, C., A. Savvides, and M. Zachariadis (2007), “International Medical Technology Diffusion”, Journal of International Economics, 72(2).
Romer, P. (1989), “Endogenous Technological Change”, Working Paper, no. 3210, National Bureau of Economic Research.
Pesaran, M. H. (2004), “General Diagnostic Tests for Cross Section Dependence in Panels”, IMF Working Paper, no. 1229.
Pesaran, M. H. (2007), “A Simple Panel Unit Root Test in Presence of Cross Section Dependence”, Journal of Applied Econometrics, vol. 22.
Phillips, P. C. B. and B. E. Hansen (1990), “Statistical Inference in Instrumental Variables Regression With I(1) Processes”, Review of Economic Studies, vol. 57.
Smith, R. D. (2004), “Foreign Direct Investment and Trade in Health Services: a Review of the Literature”, Social Science and Medicine, 59(11).
Smith, R. D, P. R. Chanda, and V. Tangcharoensathien (2009), “Trade in Health-Related Services”, The Lancet, 373(9663).
Stark, O. (2004), “Rethinking the Brain Drain”, World Development, 32(1).
Stevens, P., J. Urbach, and G. Wills (2013), “Healthy Trade: The Relationship between Open Trade and Health”, Foreign Trade Review, 48(1).
Tsai, M. C. (2007), “Does Globalization Affect Human Well-Being?”, Social Indicators Research, vol. 81.
Wei, S. J. and Y. Wu (2002), “The Life-and-Death Implications of Globalization”, IMF Working Paper, <popline.org>.
WHO (2010), World Health Statistics.
Westerlund, J. (2007), “Testing for Error Correction in Panel Data”, Oxford Bulletin of Economics and Statistics, 69(6).