Health is regarded as an asset; a component of what economists define as “human capital”. Health is considered to be a critical factor in the developmental phase of economic systems. Several studies have demonstrated the importance of health in stimulating economic growth. The decisions, however, regarding the allocation of public funds in the health sector and health-related areas can potentially have detrimental implications for a country’s human capital and hence economic development.
Due to its direct and indirect impact, health is one of the key determinants of the incidence of poverty in many emerging economies. Poverty traps in conjunction with poor child health and nutrition are important factors that determine the educational attainment of individuals. The causal dimension between health and education can readily be discerned since higher parental income induced by educational attainment can directly affect the health and nutrition of their children.