FCTC ratification, smoking prevalence, and GDP per capita: lessons for Indonesia and the rest of the world

Abstract Background Indonesia’s stagnated progress towards tobacco control could be addressed through the implementation of a comprehensive national framework, such as the World Health Organization’s (WHO) Framework Convention of Tobacco Control (FCTC). However, national tobacco industry supporters...

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Main Authors: Abdillah Ahsan, Rifai Afin, Nadira Amalia, Martha Hindriyani, Ardhini Risfa Jacinda, Elisabeth Kramer
Format: Article
Language:English
Published: BMC 2022-02-01
Series:Globalization and Health
Subjects:
Online Access:https://doi.org/10.1186/s12992-022-00810-y
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author Abdillah Ahsan
Rifai Afin
Nadira Amalia
Martha Hindriyani
Ardhini Risfa Jacinda
Elisabeth Kramer
author_facet Abdillah Ahsan
Rifai Afin
Nadira Amalia
Martha Hindriyani
Ardhini Risfa Jacinda
Elisabeth Kramer
author_sort Abdillah Ahsan
collection DOAJ
description Abstract Background Indonesia’s stagnated progress towards tobacco control could be addressed through the implementation of a comprehensive national framework, such as the World Health Organization’s (WHO) Framework Convention of Tobacco Control (FCTC). However, national tobacco industry supporters argue that accepting the FCTC will have negative economic implications for the country. These arguments have, thus far, discouraged the Indonesian government from ratifying the FCTC. Drawing from an analysis of the impact of the FCTC on other countries’ smoking rates and Gross Domestic Product (GDP) per capita, this study offers empirical evidence against industry arguments concerning the potential negative economic impacts of FCTC adoption. This study applies a two stage least square estimation strategy to unbalanced panel data at country level. In the first stage we estimate the impact of FCTC ratification on smoking rates, and in the second step, we estimate the influence of smoking activity on macroeconomic performance. Results The result of this study shows that FCTC ratification has a negative impact on a country’s smoking prevalence. While FCTC ratification positively correlates with reduced smoking prevalence, a decline in smoking prevalence is not related to a decline in GDP per capita. Conclusions The results of this study shows that FCTC ratification, which can be an important driver for more effective tobacco control, does not necessarily have a negative impact on the economy. Instead, FCTC ratification may be beneficial for both health and economic outcomes, as it provides comprehensive guidance for reducing smoking prevalence that take into account social and economic factors.
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spelling doaj.art-02689f211361404b8491816a47342b7c2022-12-22T04:11:01ZengBMCGlobalization and Health1744-86032022-02-011811610.1186/s12992-022-00810-yFCTC ratification, smoking prevalence, and GDP per capita: lessons for Indonesia and the rest of the worldAbdillah Ahsan0Rifai Afin1Nadira Amalia2Martha Hindriyani3Ardhini Risfa Jacinda4Elisabeth Kramer5Department of Economics, Faculty of Economics and Business, University of IndonesiaDepartment of Economics, University of Trunojoyo MaduraDepartment of Economics, Faculty of Economics and Administration, University of MalayaFaculty of Economics and Business, Gadjah Mada UniversityCenter for Islamic Economics and Business, Faculty of Economics and Business, University of IndonesiaSydney Southeast Asia Centre, University of SydneyAbstract Background Indonesia’s stagnated progress towards tobacco control could be addressed through the implementation of a comprehensive national framework, such as the World Health Organization’s (WHO) Framework Convention of Tobacco Control (FCTC). However, national tobacco industry supporters argue that accepting the FCTC will have negative economic implications for the country. These arguments have, thus far, discouraged the Indonesian government from ratifying the FCTC. Drawing from an analysis of the impact of the FCTC on other countries’ smoking rates and Gross Domestic Product (GDP) per capita, this study offers empirical evidence against industry arguments concerning the potential negative economic impacts of FCTC adoption. This study applies a two stage least square estimation strategy to unbalanced panel data at country level. In the first stage we estimate the impact of FCTC ratification on smoking rates, and in the second step, we estimate the influence of smoking activity on macroeconomic performance. Results The result of this study shows that FCTC ratification has a negative impact on a country’s smoking prevalence. While FCTC ratification positively correlates with reduced smoking prevalence, a decline in smoking prevalence is not related to a decline in GDP per capita. Conclusions The results of this study shows that FCTC ratification, which can be an important driver for more effective tobacco control, does not necessarily have a negative impact on the economy. Instead, FCTC ratification may be beneficial for both health and economic outcomes, as it provides comprehensive guidance for reducing smoking prevalence that take into account social and economic factors.https://doi.org/10.1186/s12992-022-00810-yFramework convention on tobacco control (FCTC)IndonesiaGDP per capita
spellingShingle Abdillah Ahsan
Rifai Afin
Nadira Amalia
Martha Hindriyani
Ardhini Risfa Jacinda
Elisabeth Kramer
FCTC ratification, smoking prevalence, and GDP per capita: lessons for Indonesia and the rest of the world
Globalization and Health
Framework convention on tobacco control (FCTC)
Indonesia
GDP per capita
title FCTC ratification, smoking prevalence, and GDP per capita: lessons for Indonesia and the rest of the world
title_full FCTC ratification, smoking prevalence, and GDP per capita: lessons for Indonesia and the rest of the world
title_fullStr FCTC ratification, smoking prevalence, and GDP per capita: lessons for Indonesia and the rest of the world
title_full_unstemmed FCTC ratification, smoking prevalence, and GDP per capita: lessons for Indonesia and the rest of the world
title_short FCTC ratification, smoking prevalence, and GDP per capita: lessons for Indonesia and the rest of the world
title_sort fctc ratification smoking prevalence and gdp per capita lessons for indonesia and the rest of the world
topic Framework convention on tobacco control (FCTC)
Indonesia
GDP per capita
url https://doi.org/10.1186/s12992-022-00810-y
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