Financial Development and Health

Abstract

The note shows that there are several links between financial development and health. Using multiple pathways, these operate through both the Growth Channel and the Volatility Channel. However the note points out that both healthcare and financial access have special characteristics that have an important influence on how the benefits of financial development are transmitted to health. It make some suggestions on how access to healthcare and financial services needs to be designed so as to maximize the benefits of financial development on health.