Analyzing the Economic Factors Affecting Life Expectancy in G7 Countries Using Panel Data Analysis

Abstract

This study aims to examine the relationships between life expectancy at birth (years) and gross domestic product per capita, gross national income per capita, and trade openness using panel data analysis. For this purpose, the G7 countries, consisting of Germany, the United States, the United Kingdom, Italy, France, Japan, and Canada, which are the seven most developed countries in the world and known as the leading countries, were analyzed through the panel data method for the period 1990–2019. The empirical findings reveal that gross domestic product per capita, gross national income per capita, and trade openness positively affect life expectancy at birth and that the effect of gross domestic product per capita and trade openness on life expectancy is significant, but the effect of gross national income per capita on life expectancy is insignificant. Finally, when gross domestic product per capita and trade openness increased by 1 unit, life expectancy at birth increased by 0.0001067 and 0.0802918 years, respectively. It was understood that robust panel data analysis models were applicable methods to examine the impacts of economic variables on people's life expectancy at birth.