IDEAS home Printed from https://ideas.repec.org/a/rjr/romjef/vy2020i4p170-184.html
   My bibliography  Save this article

Life Expectancy from the Perspective of Global and Individual Wealth and Expenditures: A Granger Causality Study of Some Eu Countries

Author

Listed:
  • Mihai PĂUNICĂ

    (The Bucharest University of Economic Studies, Bucharest, Romania.)

  • Alexandru MANOLE

    (“ARTIFEX” University of Bucharest, Bucharest, Romania)

  • Cătălina MOTOFEI

    (The Bucharest University of Economic Studies, Bucharest, Romania.)

  • Gabriela - Lidia TĂNASE

    (The Bucharest University of Economic Studies, Bucharest, Romania.)

Abstract

Increasing life expectancy will generate great benefits for a country, such as less expenditure for the public sector, a greater economic growth, and more active persons in the work field. In this respect, a country can improve its economic situation by identifying and controlling the factors that exert an influence on life expectancy. Previous studies in the field have intensively approached this topic, but the results obtained are still conflicting. The objective of our paper is to continue research and investigations in accordance with previous studies, by analyzing the influence of four explanatory indicators (GDP, health expenditures, individual income and household consumption) on life expectancy (as a dependent variable in the case of males and females) in the particular case of European Union, and seven countries in the EU (Romania, Czech Republic, Bulgaria, Hungary, Poland, Lithuania and Slovakia). In order to achieve our research objective, we used the Toda-Yamamoto approach of the Granger causality for the data collected for the period 1995-2017. Our study reveals the fact that only in the particular case of Bulgaria the GDP and final consumption do influence life expectancy for men. Wages were found to influence life expectancy only for females in Romania and for men in Poland, thus suggesting differences between genders. Some inverse causalities were also demonstrated. We believe that our research will have theoretical implications by deepening the knowledge in the field regarding life expectancy, and also practical implications allowing the identification of the factors that influence life expectancy (important for countries to take appropriate action). Our research brings value to the field, by analyzing in a unitary manner (same data source, same methodology, same geographical coordinates) the effect of four different explanatory variables, with economic substance, on life expectancy from 2 perspectives: male and female. Also, we analyze the particular case of seven countries in the EU, with similar economic backgrounds, to see if results can be extrapolated. Unfortunately, the results obtained are debatable and generally mixed. Further research is needed in order to identify the underlying causes of the results obtained.

Suggested Citation

  • Mihai PĂUNICĂ & Alexandru MANOLE & Cătălina MOTOFEI & Gabriela - Lidia TĂNASE, 2020. "Life Expectancy from the Perspective of Global and Individual Wealth and Expenditures: A Granger Causality Study of Some Eu Countries," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 170-184, December.
    • Handle: RePEc:rjr:romjef:v::y:2020:i:4:p:170-184
    as

    Download full text from publisher

    File URL: http://www.ipe.ro/rjef/rjef4_20/rjef4_2020p170-184.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Obrizan, Maksym & Wehby, George L., 2018. "Health Expenditures and Global Inequalities in Longevity," World Development, Elsevier, vol. 101(C), pages 28-36.
    2. ABOUDOU Maman Tachiwou, 2009. "Causality tests between stock market development and economic growth in West African Monetary Union," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 12(2), pages 14-27, December.
    3. Detollenaere, Jens & Desmarest, Ann-Sophie & Boeckxstaens, Pauline & Willems, Sara, 2018. "The link between income inequality and health in Europe, adding strength dimensions of primary care to the equation," Social Science & Medicine, Elsevier, vol. 201(C), pages 103-110.
    4. Simona MOAGAR-POLADIAN & Victoria FOLEA & Mihai PAUNICA, 2017. "Competitiveness of EU Member States in Attracting EU Funding for Research and Innovation," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 150-167, June.
    5. Kunze, Lars, 2014. "Life expectancy and economic growth," Journal of Macroeconomics, Elsevier, vol. 39(PA), pages 54-65.
    6. Kumara, Ajantha Sisira & Samaratunge, Ramanie, 2017. "Impact of ill-health on household consumption in Sri Lanka: Evidence from household survey data," Social Science & Medicine, Elsevier, vol. 195(C), pages 68-76.
    7. Halicioglu, Ferda, 2011. "Modeling life expectancy in Turkey," Economic Modelling, Elsevier, vol. 28(5), pages 2075-2082, September.
    8. Mihai Paunica & Ileana Cosmina Pitulice & Aurelia ?tefanescu, 2017. "International Migration from Public Health Systems. Case of Romania," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(46), pages 742-742, August.
    9. Viorica Chirila & Ciprian Chirila, 2017. "The Analysis of Romania’s External Migration and of the Causality between Remittances and Romania’s Economic Growth," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(46), pages 696-696, August.
    10. Babones, Salvatore J., 2008. "Income inequality and population health: Correlation and causality," Social Science & Medicine, Elsevier, vol. 66(7), pages 1614-1626, April.
    11. Neofytidou, Aliona & Fountas, Stilianos, 2020. "The impact of health on GDP: A panel data investigation," The Journal of Economic Asymmetries, Elsevier, vol. 21(C).
    12. El Mekkaoui de Freitas, Najat & Oliveira Martins, Joaquim, 2014. "Health, pension benefits and longevity: How they affect household savings?," The Journal of the Economics of Ageing, Elsevier, vol. 3(C), pages 21-28.
    13. Gallardo-Albarrán, Daniel, 2018. "Health and economic development since 1900," Economics & Human Biology, Elsevier, vol. 31(C), pages 228-237.
    14. Hansen, Casper Worm, 2012. "The relation between wealth and health: Evidence from a world panel of countries," Economics Letters, Elsevier, vol. 115(2), pages 175-176.
    15. repec:dau:papers:123456789/12130 is not listed on IDEAS
    16. Desbordes, Rodolphe, 2011. "The non-linear effects of life expectancy on economic growth," Economics Letters, Elsevier, vol. 112(1), pages 116-118, July.
    17. Cervellati, Matteo & Sunde, Uwe, 2011. "Disease and development: The role of life expectancy reconsidered," Economics Letters, Elsevier, vol. 113(3), pages 269-272.
    18. Emanuele Felice & Josep Pujol Andreu & Carlo D'Ippoliti, 2016. "GDP and life expectancy in Italy and Spain over the long run: A time-series approach," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 35(28), pages 813-866.
    19. Hatemi-J, Abdulnasser, 2004. "Is the Equity Market Informationally Efficient in Japan? Evidence from Leveraged Bootstrap Analysis," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 57(4), pages 461-473.
    20. Asiskovitch, Sharon, 2010. "Gender and health outcomes: The impact of healthcare systems and their financing on life expectancies of women and men," Social Science & Medicine, Elsevier, vol. 70(6), pages 886-895, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aysit Tansel & Ceyhan Ozturk & Erkan Erdil, 2021. "The Impact of Body Mass Index on Growth, Schooling, Productivity, and Savings: A Cross-Country Study," Koç University-TUSIAD Economic Research Forum Working Papers 2118, Koc University-TUSIAD Economic Research Forum.
    2. Robert Stefko & Beata Gavurova & Viera Ivankova & Martin Rigelsky, 2020. "Gender Inequalities in Health and Their Effect on the Economic Prosperity Represented by the GDP of Selected Developed Countries—Empirical Study," IJERPH, MDPI, vol. 17(10), pages 1-26, May.
    3. Mihai Paunica & Alexandru Manole & Catalina Motofei & Gabriela-Lidia Tanase, 2021. "Resilience of the European Union Economies. An Analysis of the Granger Causality at the Level of the Gross Domestic Product," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 23(Special15), pages 914-914, November.
    4. Zakir Husain & Mousumi Dutta & Nidhi Chowdhary, 2014. "Is Health Wealth? Results of a Panel Data Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(1), pages 121-143, May.
    5. Sulemana, Iddisah & Kpienbaareh, Daniel, 2018. "An empirical examination of the relationship between income inequality and corruption in Africa," Economic Analysis and Policy, Elsevier, vol. 60(C), pages 27-42.
    6. Wang, Shaobin & Ren, Zhoupeng & Liu, Xianglong & Yin, Qian, 2022. "Spatiotemporal trends in life expectancy and impacts of economic growth and air pollution in 134 countries: A Bayesian modeling study," Social Science & Medicine, Elsevier, vol. 293(C).
    7. Hajamini, Mehdi & Falahi, Mohammad Ali, 2018. "Economic growth and government size in developed European countries: A panel threshold approach," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 1-13.
    8. Martin, Lisa & Baten, Joerg, 2022. "Inequality and Life Expectancy in Africa and Asia, 1820‐2000," Journal of Economic Behavior & Organization, Elsevier, vol. 201(C), pages 40-59.
    9. Masagus M. Ridhwan & Peter Nijkamp & Affandi Ismail & Luthfi M.Irsyad, 2022. "The effect of health on economic growth: a meta-regression analysis," Empirical Economics, Springer, vol. 63(6), pages 3211-3251, December.
    10. Sher Khan, 2022. "Investigating the Effect of Income Inequality on Corruption: New Evidence from 23 Emerging Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2100-2126, September.
    11. Lei He & Na Li, 2020. "The linkages between life expectancy and economic growth: some new evidence," Empirical Economics, Springer, vol. 58(5), pages 2381-2402, May.
    12. Ionel Muntele & Marinela Istrate & Alexandru Bănică & Raluca-Ioana Horea-Șerban, 2020. "Trends in Life Expectancy in Romania between 1990 and 2018. A Territorial Analysis of Its Determinants," Sustainability, MDPI, vol. 12(9), pages 1-17, May.
    13. Lei He & Zhengqi Wang, 2023. "The interaction effects of rising life expectancy and the public pension burden on aggregate savings and economic growth," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 22(2), pages 229-250, May.
    14. Lopreite, Milena & Zhu, Zhen, 2020. "The effects of ageing population on health expenditure and economic growth in China: A Bayesian-VAR approach," Social Science & Medicine, Elsevier, vol. 265(C).
    15. Viera Ivanková & Rastislav Kotulič & Jaroslav Gonos & Martin Rigelský, 2019. "Health Care Financing Systems and Their Effectiveness: An Empirical Study of OECD Countries," IJERPH, MDPI, vol. 16(20), pages 1-22, October.
    16. Bloom, David E. & Kuhn, Michael & Prettner, Klaus, 2018. "Health and Economic Growth," IZA Discussion Papers 11939, Institute of Labor Economics (IZA).
    17. Păunică Mihai & Manole Alexandru & Motofei Cătălina & Tănase Gabriela-Lidia, 2019. "An overview on the correlation between the economic status of a country and the population’s health indicators," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 13(1), pages 1058-1069, May.
    18. Ono, Tetsuo & Uchida, Yuki, 2018. "Human capital, public debt, and economic growth: A political economy analysis," Journal of Macroeconomics, Elsevier, vol. 57(C), pages 1-14.
    19. Maebayashi, Noritaka, 2018. "Is an unfunded social security system good or bad for growth? A theoretical analysis of social security systems financed by VAT," MPRA Paper 90881, University Library of Munich, Germany.
    20. Tajul Masron & Mduduzi Biyase & Talent Zwane & Thomas Udimal & Frederich Kirsten, 2023. "Ecological footprint and population health outcomes: an analysis of E7 countries," Economics Working Papers edwrg-07-2023, College of Business and Economics, University of Johannesburg, South Africa, revised 2023.

    More about this item

    Keywords

    life expectancy; influence; economic; Granger causality; VAR; Toda-Yamamoto procedure;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rjr:romjef:v::y:2020:i:4:p:170-184. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Corina Saman (email available below). General contact details of provider: https://edirc.repec.org/data/ipacaro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.