Top

Social Indicators Research

Published in:

10-03-2015

Determinants of Life Expectancy and its Prospects Under the Role of Economic Misery: A Case of Pakistan

Authors: Muhammad Shahbaz, Nanthakumar Loganathan, Nooreen Mujahid, Amjad Ali, Ahmed Nawaz

Published in: Social Indicators Research | Issue 3/2016

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

The present study investigates the determinants of life expectancy in the presence of economic misery using Pakistan’s time series data over the period of 1972–2012. The stationary properties of the variables are examined by applying unit root test accommodating structural breaks. The ARDL bounds testing approach to cointegration is applied to examine the long run relationship between the variables. Our findings show that cointegration between the variables is confirmed. Moreover, health spending improves life expectancy. Food supply contributes to life expectancy. A rise in economic misery deteriorates life expectancy. Urbanization enhances life expectancy while illiteracy declines it. The causality analysis reveals that life expectancy is Granger cause of health spending, food supply, economic misery, urbanization and illiteracy. This paper opens up new insights for policy making authorities to consider the role of economic misery while formulating comprehensive economic policy to improve life expectancy in Pakistan.

previous article The Education Effect: Higher Educational Qualifications are Robustly Associated with Beneficial Personal and Socio-political Outcomes

next article Media Exposure and Health in Europe: Mediators and Moderators of Media Systems

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

See for more details http://hdrstats.undp.org/en/countries/profiles/PAK.html.

Moreover, author reported the positive impact of income per capita on health and after threshold level, the relationship between both variables becomes insignificant.

He found that rising education improves the health of women inside and outside of the home which help them for improving the health of their family and child survival.

Food production index covers food crops that are considered edible and that contain nutrients. Coffee and tea are excluded because, although edible, they have no nutritive value.

SPDC (2007b).

Pesaran et al. (2001) have computed two asymptotic critical values—one when the variables are assumed to be I(0) and the other when the variables are assumed to be I(1).

If cointegration is not detected, the causality test is performed without an error correction term (ECT).

Anand, S., & Ravallion, M. (1993). Human development in poor countries: On the role of private income and public services. Journal of Economic Perspectives, 7(1), 133–150.CrossRef

Barro, R. (1991). Economic growth in a cross-section of countries. Quarterly Journal of Economics, 106(2), 407–443.CrossRef

Brown, R. L., Durbin, J., & Evans, J. M. (1975). Techniques for testing the constancy of regression relations over time. Journal of the Royal Statistical Society, 37, 149–163.

Bruno, M., & Easterly, W. (1998). Inflation, crises and long-run growth. Journal of Monetary Economics, 41(1), 3–26.CrossRef

Collins, E., & Klein, R. (1980). Equity and the NHS: Self-reported morbidity, access and primary care. British Medical Journal, 281, 1111–1115.CrossRef

Crémieux, P., Ouellette, P., & Pilon, C. (1999). Economics of health care systems: Health care spending as determinants of health outcomes. Health Economics, 8(7), 627–639.CrossRef

Cumper, G. E. (1984). Determinants of health levels in developing countries. New York: Wiley.

Dickey, D., & Fuller, W. (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association, 74, 427–431.

Dickey, D., & Fuller, W. (1981). Likelihood ratio statistics for autoregressive time series with a unit root. Econometrica, 49, 1057–1072.CrossRef

Elola, J., Daponte, A., & Navarro, V. (1995). Health indicators and the organization of health-care systems in Western Europe. American Journal of Public Health, 85(10), 1397–1401.CrossRef

Fischer, S. (1983). Inflation and growth, NBER Working Paper No. 1235. Cambridge, Massachusetts: National Bureau of Economic Research.

Fischer, S. (1993). The role of macroeconomic factors in growth. Journal of Monetary Economics, 32(3), 485–512.CrossRef

Forbes, J. F., & McGregor, A. (1984). Unemployment and mortality in post-war Scotland. Journal of Health Economics, 3, 239–257.CrossRef

Franco, A., Alvarez-Dardet, C., & Ruiz, M. T. (2004). Effect of democracy on health: Ecological study. British Medical Journal, 329(7480), 1421–1423.CrossRef

Gerring, J., Bond, P., Barndt, W. T., & Moreno, C. (2005). Democracy and economic growth: A historical perspective. World Politics, 57(3), 323–364.CrossRef

Grabauskas, V., & Kalediene, R. (2002). Tackling social inequality through the development of health policy in Lithuania. Scandinavian Journal of Public Health, 30, 12–19.CrossRef

Grosse, R. N., & Auffrey, C. (1989). Literacy and health status in developing countries. Journal of Annual Review of Public Health, 10, 281–297.CrossRef

Grubaugh, S. G., & Santerre, R. E. (1994). Comparing the performance of health care systems: An alternative approach. Southern Economic Journal, 60(4), 1030–1042.CrossRef

Gulis, G. (2000). Life expectancy as an indicator of environmental health. European Journal of Epidemiology, 16(2), 161–165.CrossRef

Guralnik, J. M., Land, K. C., Blazer, D., Fillenbaum, G. G., & Branch, L. G. (1993). Educational status and active life expectancy among older blacks and whites. The New England Journal of Medicine, 329(2), 110–116.CrossRef

Hadley, J. (1982). More medical care, better health. Washington, DC: The Urban Institute Press.

Hertz, E., Hebert, J. R., & Landon, J. (1994). Social and environmental factors and life expectancy, infant mortality, and maternal mortality rates: Results of a cross-national comparison. Social Science and Medicine, 39, 105–114.CrossRef

Hill, M. A., & King, E. M. (1995). Women’s education and economic well-being. Feminist Economics, 1(2), 21–46.CrossRef

Hitiris, T., & Posnet, J. (1992). The determinants and effects of health expenditure in developed countries. Journal of Health Economics, 11, 173–181.CrossRef

Husain, A. R. (2002). Life expectancy in developing countries: a cross-section analysis. The Bangladesh Development Studies, 28(1–2), 161–167.

Iqbal, N., & Nawaz, S. (2010). Fiscal decentralization and macroeconomic stability: Theory and evidence from Pakistan. Paper present at 26th AGM and Conference. Islamabad, Pakistan: Pakistan Institte of Development Economists.

Kakwani, N. (1993). Performance in living standards: An international comparison. Journal of Development Economics, 41, 307–336.CrossRef

Kalediene, R., & Petrauskiene, J. (2000). Regional life expectancy patterns in Lithuania. European Journal of Public Health, 10, 101–104.CrossRef

King, D., & Ma, Y. (2001). Fiscal decentralization, central bank independence and inflation. Economic Letters, 72, 95–98.CrossRef

Lake, D. A., & Baum, M. A. (2001). The invisible hand of democracy: Political control and the provision of public services. Comparative Political Studies, 34(6), 587–621.CrossRef

Lee, J., & Strazicich, M. C. (2003). Minimum lagrange multiplier unit root test with two structural breaks. Review of Economics and Statistics, 85(4), 1082–1089.CrossRef

Lee, J., & Strazicich, M. C. (2004). Minimum LM unit root test with one structural break, Working Paper, Department of Economics, Appalachian State University.

Macfarlane, S., Racelis, M., & Muli-Musiime, F. (2000). Public health in developing countries. Lancet, 356(2), 841–846.CrossRef

Mahfuz, K. (2008). Determinants of life expectancy in developing countries. Journal of Developing Areas, 41(2), 185–204.CrossRef

Martinez-Vazquez, J., & Macnab, R. M. (2006). Fiscal decentralization, macrostability and growth. Hacienda Pública Española/Revista de Economía Pública, 179(4), 25–49.

Narayan, P. K. (2005). The saving and investment nexus for China: evidence from cointegration tests. Applied Economics, 37(17), 1979–1990.CrossRef

National Human Development Report. (1997). United nations development program. New York: Oxford University Press.

Navarro, V., Muntaner, C., Borrell, C., Benach, J., Quiroga, A., Rodriguez-Sanz, M., et al. (2006). Politics and health outcomes. Lancet, 368(9540), 1033–1037.CrossRef

Nelson, C. R., & Plosser, C. I. (1982). Trends and random walks in macroeconomic time series: Some evidence and implications. Journal of Monetary Economics, 10, 139–162.CrossRef

Neyapti, B. (2004). Fiscal decentralization, central bank independence and inflation: A panel investigation. Economics Letters, 82(2), 227–230.CrossRef

Ouattara, B. (2004). Modelling the long run determinants of private investment in Senegal. The School of Economics Discussion Paper Series 0413, Economics, The University of Manchester.

Perron, P. (1990). Testing for a unit root in a time series with a changing mean. Journal of Business and Economic Statistics, 8(2), 153–162.

Perron, P. (1997). Further evidence on breaking trend functions in macroeconomic variables. Journal of econometrics, 80(2), 355–385.CrossRef

Pesaran, M. H., & Shin, Y. (1999). An autoregressive distributed lag modelling approach to cointegration analysis. In S. Strom (Ed.), Econometrics and economic theory in the 20th century: The Ragnar Frisch Centennial Symposium. Cambridge: Cambridge University Press.

Pesaran, M. H., Shin, Y., & Smith, R. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16, 289–326.CrossRef

Poikolainen, K., & Eskola, J. (1988). Health services resources and their relation to mortality from causes amenable to health care: A cross-national study. International Journal of Epidemiology, 17, 86–89.CrossRef

Preston, S. H. (1975). The changing relation between mortality and level of economic development. Population Studies, 29(2), 231–248.CrossRef

Preston, S. H. (1976). Mortality patterns in national populations. New York: Academic Press.

Preston, S. H. (1980). Causes and consequences of mortality declines in less developed countries during the Twentieth century. In R. A. Easterlin (Ed.), Population and economic change in developing countries. Chicago: University of Chicago Press.

Rogers, G. B. (1979). Income and inequality as determinants of mortality: An international cross-section analysis. Population Studies, 33(3), 343–351.CrossRef

Rogers, R. G., & Wofford, S. (1989). Life expectancy in less developed countries: Socio-economic development or public health? Journal of Biosociological Science, 21(2), 245–252.

Rogot, E., Sorlie, P. D., & Johnson, N. J. (1992). Life expectancy by employment status, income, and education in the national Longitudinal Mortality Study. Public Health Reports, 107(4), 457–461.

Sen, A. (1999). Commodities and capabilities. New York: Oxford University Press.

Shah, A. (2006). Fiscal decentralization and macroeconomic management. International Tax and Public Finance, 13, 437–462.CrossRef

Shen, C. E., & Williamson, J. B. (1997). Child mortality, women’s status, economic dependency, and state strength: A cross-national study of less developed countries. Social Forces, 76(2), 667–694.CrossRef

SPDC. (2007a). Social development in Pakistan: Devolution and human development in Pakistan. Karachi, Pakistan.

SPDC. (2007b). Trade liberalization, growth and poverty. Annual Review 2005–2006. Karachi, Pakistan: Social Policy and Development Center.

Starfield, B., & Shi, L. (2002). Policy relevant determinants of health: An international perspective. Health Policy, 60(3), 201–218.CrossRef

Subramanian, S. V., Belli, P., & Kawachi, I. (2002). The macroeconomic determinants of health. Annual Review of Public Health, 23, 287–302.CrossRef

Szwarcwald, C. L., Bastos, F. I., Barcellos, C., Pina, M. F., & Esteves, M. A. P. (2000). Health conditions and residential concentration of poverty: A study in Rio de Janeiro, Brazil. Journal of Epidemiology and Community Health, 54, 530–536.CrossRef

Thornton, J. (2007). Further evidence on revenue decentralization and inflation. Economics Letters, 95(1), 140–145.CrossRef

Treisman, D. (2000). Decentralization and inflation: Commitment, collective action, or continuity. American Political Science Review, 94(4), 837–857.CrossRef

United Nations. (UN). (2009). World mortality report. New York, USA: United Nations.

Veugelers, P. J., Yip, A. M., & Kephart, G. (2001). Proximate and contextual socioeconomic determinants of mortality: Multilevel approaches in a setting with universal health care coverage. American Journal of Epidemiology, 154(8), 543–546.CrossRef

Wilkinson, R. G. (1996). Unhealthy societies: The afflictions of inequality. London: Routledge.CrossRef

Williamson, J. B., & Boehmer, U. (1997). Female life expectancy, gender stratification, and level of economic development: A cross national study of less developed countries. Social Science and Medicine, 45(2), 305–317.CrossRef

Wolfe, B. (1986). Health status and medical expenditures: Is there a link? Social Science and Medicine, 22, 993–999.CrossRef

World Bank. (1997). World development indicators. Washington, DC.

Title: Determinants of Life Expectancy and its Prospects Under the Role of Economic Misery: A Case of Pakistan
Authors: Muhammad Shahbaz
Nanthakumar Loganathan
Nooreen Mujahid
Amjad Ali
Ahmed Nawaz
Publication date: 10-03-2015
Publisher: Springer Netherlands
Published in: Social Indicators Research / Issue 3/2016
Print ISSN: 0303-8300
Electronic ISSN: 1573-0921
DOI: https://doi.org/10.1007/s11205-015-0927-4

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Other articles of this Issue 3/2016

Relative Income, Relative Assets, and Happiness in Urban China

Reliability, Validity, and Variability of the Subjective Well-Being Questions in the 2010 American Time Use Survey

Health, Leisure, and Life Cycle: A Gender Approach in the Tropics

Facilitating Pro-environmental Behavior: The Role of Pessimism and Anthropocentric Environmental Values

Determinants of Self-Rated Health Among Canadian Seniors Over Time: A Longitudinal Population-Based Study

Dimensions of Identity and Subjective Quality of Life in Adolescents

Premium Partner