Investigating the role of health, education, energy and pollution for explaining total factor productivity in emerging economies

Abstract

This study aims to analyze the role of health, education, energy and pollution in affecting productivity in selected emerging economies. Industrial share to GDP, trade openness and Information Communication and Technology (ICT) are used as control variables. Various dimensions of health and education are explored that include malnutrition, access to clean water, HIV, life expectancy and years of schooling at several levels. A set of Fixed Effect models provide evidence that all of the variables of health and education are critical for productivity. Further, the negative effect of trade openness calls for attention of the policy makers to work out the possibility of technology transfer through integration of economies so that productivity may be enhanced. Another dimension is to revisit the energy mix because the positive effect of energy use is offset by an increase in pollution. Public policy makers should understand the importance of public investment in necessary provisions for improving productivity, economic growth and ultimately the welfare of society, then it can make a difference.