Economic impact of Physician

• Author: Wilson Rajagukguk
• Position: Faculty of Economics and Business, Universitas Kristen Indonesia, Jakarta Indonesia
• Pages: 22-29

22

Vol. 6 No.1

May, 2020

Balkan Journal of Interdisciplinary Research

IIPCCL Publishing, Graz-Austria

ISSN 2410-759X

Acces online at www.iipccl.org

E conomic impact of Physician

Wilson Rajagukguk

Faculty of Economics and Business, Universitas Kristen Indonesia, Jakarta Indonesia

Abstract

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)

defi 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 infl 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.

Introduction

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

infl 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).