Malaria and Economic Development in the Short-term: Plasmodium falciparum vs Plasmodium vivax

Malaria – a disease caused by parasitic microorganisms of the Plasmodium genus – has been shown to impede economic growth and socioeconomic development in the long-term. In this paper we use annual regional data from India to show that malaria outbreaks are associated with an immediate decline in economic development approximated by night light intensity. We find the association to be significant for outbreaks of both the globally most prevalent Plasmodium species: Plasmodium falciparum and Plasmodium vivax. The estimated associations are quite sizeable. Severe outbreaks correlate with night light reductions of 5% of the standard deviation for P. falciparum and 4% for P. vivax.