This paper provides empirical evidence on the effect of trade openness on child health using the data from 171 countries between the mid-1990s to mid-2000s. Using an instrumental variable approach with a geographic gravity model framework, this study finds that a 1% increase in openness leads to a 0.2% decrease in infant mortality rates across countries, which at the sample mean is about 8 infant deaths per 1000 live births. The result is robust to country-specific time-invariant heterogeneity as well as outliers. The main channels of operation seem to be through increasing incomes, increasing health expenditures, and decreasing inequality.
Panda, P. (2020). Trade and Health Linkages: A Global Panel Data Analysis Using the Gravity Model. Journal of Applied Business and Economics, 22(5). https://doi.org/10.33423/jabe.v22i5.3053
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.