Relationship between GDP, Life Expectancy and Growth Rate of G7 Countries

Abstract

Increase in life expectancy is a key indicator to gauge the economic development of a country. Enormous studies have been done to test this hypothesis, and the conclusion is still undecided. This study aims to explore the impact of life expectancy on economic growth in G7 countries via regression approach. Keeping in view the unique population structure of each of these G7 countries, the trend of life expectancy for each country is also observed. Findings of the study indicate that life expectancy in G7 countries increases with constant rate. The increase in life expectancy is accompanied with the increase in Gross Domestic Product (GDP) per capita income. We have also included the population growth rate as another important factor contributing towards GDP. It is worth mentioning here that increase in life expectancy directly affects per capita real income due to higher expenditure on health. Moreover, it is also found that increase in GDP lessens the population growth.

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

“…The dynamic xed effects model predicted that a 1% increase in LE would lead to a 3.5% increase in GDP per capita. In this study, an increase occurred in LE as GDPPC increased, as in the study by Sha and Fatima (2019). On the other hand, as Hermanovzski et al ( 2015) pointed out in their study, the medium and longterm trends in LE can be determined by variables such as health expenditures, lifestyle, and environmental factors, as well as GDP per capita.…”

“…In the study conducted by Bilas V., Franc S., & Bosnjak M. (2014) on life expectancies of 28 European Union countries; GDP growth rate, population growth rate, level of education attained, education enrolment, and GDP per capita were taken as the determinants of LE, and a panel data analysis approach was applied, and it was determined that GDP per capita and level of education explained the differences in LE to a great extent. A similar study was conducted by Sha and Fatima (2019). The relationships between countries' economic growth, population growth, and LE were examined through a regression model, and it was determined that there was an increase in LE in high-income countries.…”

Impact of Economic Progress, Energy Consumption and Carbon Dioxide Emissions on Life Expectancy: Evidence from Asia and Africa

“…However, in some cases, life expectancy has no influential impact on welfare but is considered the major contributor to economic growth, evidenced in previous research (Acemoglu and Johnson, 2007). Nevertheless, life expectancy is improving by intensifying health costs and distressing GDP per capita (He and Li, 2019;Shafi and Fatima, 2019). Okunade and Osmani (2020) argued that many previous studies have been in favor of survival rate as the utmost crucial contributor to per capita economic growth, while life expectancy with growing health costs negatively influences per capita income.…”

Predicting the Albanian economic development using multivariate Markov chain model

“…Via the regression approach, Shafi and Fatima (2019) studied the impact of life expectancy and population growth rate in GDP growth of the G7 countries. They found a significant relationship between these indices.…”