Interaction effects of mental health disorders and labour productivity on economic growth in Africa

Mental health disorders are major public health problems confronting millions of people globally as well as in Africa. While these disorders can negatively affect the economic productivity of affected persons which can reduce economic growth, to the best of our knowledge, empirical evidence in this regard is sparse, with none emanating from the African continent. This study therefore examines the individual and combined (interaction) effects of mental health disorders and labour productivity on economic growth in Africa. The study uses data comprising 45 African countries over the period, 2002–2019. Prevalence of schizophrenia, depression, dysthymia, bipolar and anxiety are the mental health disorders used while the log difference between the current year's real Gross Domestic Product (GDP) and the past year's real GDP is used to measure economic growth. Labour productivity is measured by the rate of growth in output (GDP) per worker. The system Generalised Method of Moments (GMM) regression is used as the estimation technique. The study finds that, in both the short-and long-run periods, while all the mental health disorders have negative significant effects on economic growth, the effect of labour productivity on economic growth is positive and significant. However, the interactions of each of the mental health disorders with labour productivity are found to have negative significant effects on economic growth in both the short-and long-run periods. There is therefore the need to enhance awareness about mental health disorders as well as access to effective and quality mental healthcare to reduce the associated enormous economic losses. • Mental health disorders are major public health problems affecting millions of people globally as well as in Africa. • This study examines the individual and combined (interaction) effects of mental health disorders and labour productivity on economic growth in 45 African countries. • We find that, the interactions of mental health disorders with labour productivity have negative significant effects on economic growth. • There is the need to enhance awareness about mental health disorders as well as access to effective and quality mental healthcare.