Economic impact of Physician

AuthorWilson Rajagukguk
PositionFaculty of Economics and Business, Universitas Kristen Indonesia, Jakarta Indonesia
Vol. 6 No.1
May, 2020
Balkan Journal of Interdisciplinary Research
IIPCCL Publishing, Graz-Austria
ISSN 2410-759X
Acces online at
E conomic impact of Physician
Wilson Rajagukguk
Faculty of Economics and Business, Universitas Kristen Indonesia, Jakarta Indonesia
This study aims to investigate the impacts of the number of physician on economic growth.
The macroeconomic impacts of the number of physician are limitedly studied. IQVIA (2018)
de ned that the total macroeconomic impacts are direct and indirect. Direct impacts are
on four main economic barometers: consumption, investment, government expenditure,
and export and import. Meanwhile, indirect impacts on the same barometers are generated
through physician- supported industries. National impacts are the total of the four barometers
at national level. The data used in this study came from the World Bank data bank. The data
covered 185 countries in the world. The period of analysis varied from 2006 to 2015. A multiple
regression model was employed in the analysis. The independent variables are the number
of physicians per 1,000 people and percentage of population with electricity. Meanwhile, the
dependent variable is the gross domestic product (GDP) per capita at constant price in 2000.
The results of the study show that an additional of 1,000 physicians in a country will increase
the GDP per capita as much as US$ 7,302.951 yearly, an additional of foreign direct investment,
net in ows (% of GDP), will increase GDP per capita as much as US$207.146, and an additional
of 1% access to electricity will increase GDP per capita as much as US$57.808.
Keywords: Economic growth, physicians, electricity, multiple regression, Indonesia.
The third goal of the sustainable development goals (SDGs) is to ensure healthy lives
and promote wellbeing for all at all ages and SDG 8 is to promote sustained, inclusive
and sustainable economic growth, full and productive employment and decent work
for all. SDGs aim to improve people’s welfare through health and economic growth
for all. It can mean that healthy life can promote welfare and then economic growth
aims to improve welfare. Data show that countries with higher number of physicians
per 10,000 people are those with higher economic growth (Figure 1). Meanwhile,
countries with lower number of physicians per 10,000 people are those with lower
economic growth. Does health development, in this case, the number of physicians
a ect macroeconomic growth?
The relationship between the number of physicians and economic growth has been
studied and found can happen in two directions. Cooper et al. (2002) carried out the
time series and cross-sectional data analysis for the United States in 1929–2000. They
found that the economic growth (gross domestic product/GDP per capita) positively
in uenced the demand for physicians per capita. A 10% increase in GDP per capita
would increase the demand per physicians per capita by 7.5% (US Department of
Health and Human Service, 2006).

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