Is Trade Openness Impact on Health Level Rising? Evidence From Panel Data Across Upper-Middle Income Countries

The transfer of capital and goods, technology and information to other countries through cross-border trade has led to economic integration among countries. This situation has caused the change in the life structure of the individuals in many areas and thus the welfare as well. This change may also affect the health levels of countries. Particularly, with the new technology and knowledge, the methods and practices related to new treatment and diseases to be transferred to countries via foreign trade have played a role in influencing the health levels of countries. In this respect, the importance of trade openness on impact of the level of health in countries also has begun to be discussed. The new discussion area in foreign trade for healthcare is that the trade openness level whether impact on health outcomes for especially in the less development and developing countries. This study examines the effect of trade openness on the health outcomes of 13 countries in upper-middle income- World Bank classification- Middle East and Asia countries by using a panel data method over 1990-2017. Our finding shows that the trade openness has a statistically significant and positive effect for both health outcomes. In addition, the positive and significant effect of GDP per capita and R&D expenditures share in GDP on health level are also among the other notable results of the study that it has impact on improving the health outcomes through the spillover of new technologies and information with more focus on foreign trade in these countries.