Main Article Content
Investment in healthcare is of paramount importance as it builds up the stock of health capital, which is primordial to economic growth. However, a high level of income inequality can impair an economy's human capital insofar as low-income people do not have sufficient access to health facilities or health care (Ray and Linden, 2018). This study attempts to unveil the contribution of health capital to economic growth in a situation of rising income disparity in sub-Saharan African countries. The study employs a dynamic model of the Generalized Method of Moments in 38 countries using annual data from 1998 to 2018. Empirical results show that rising income inequality reduces the positive effect of health capital on economic growth. This study suggests that health care financing should be a government priority while ensuring that effective redistributive measures are put in place to reduce income inequality.
Key words: health, human capital, income inequality, economic growth, SGMM
JEL Classification: I150, C11, C23