1. Significance of the Study of Health Economics

Development of a nation is crucially connected with the condition of health of its people, and health is now been accepted as an important determinant of economic development of a nation. It is only a nation with a healthy labour force who has the ability and the capability to undertake the task of expediting the growth and development of the economy. According to Development Economists, health condition of the people is also one of the important ends of all developmental efforts. Impressive achievement in the health sector has paved the way for excellent record not only in the level of economic development as revealed by the experience of most nations, but in human development as well. This has been the experience of the South East Asian nations as well as the Nordic nations. Inadequate and unplanned investment in the health sector results in frequent break out of epidemics and deaths, which can seriously retard the current and the future growth potentiality of those nations. Such has been the unfortunate experience of some of the African nations.