The Determinants of Life Expectancy A Cross-Sectional Study of Asia and Europe

Abstract

Purpose: Asian and European nations tend to show divergence in their life expectancies at birth. While part of the explanation for this lies in historical factors, socio-economic factors also play an important role. Using cross-sectional data for 2019, this study attempts to estimate a multi-variate model to assess how national income (GNI per capita in PPP terms), government health spending (share of GDP), and share of population having access to safely managed drinking water, are related to life expectancy at birth in Asian and European countries. The study builds on the hypothesis that higher national income as well as greater government spending on health tend to impact life expectancy positively, and so does better access to clean drinking water.

Methodology: The study is quantitative in nature, based on secondary data of 53 countries collected from World Development Indicators database (WDI, World Bank); World Inequality Database (WID), and Gender Inequality Index (UNDP). It involves statistical testing of an econometric model using Gretl software, by means of which a simple OLS regression has been performed.

Findings: The estimated model appears to be theoretically relevant and reasonably satisfactory. The study concludes that the three independent variables are positively related to life expectancy at birth and are also statistically significant. This corroborates the hypothesis described above.

Originality/Value: The study underlines the need for re-orienting government spending patterns. The results highlight that it is essential to divert a greater share of national income towards health expenditure, ensure higher GNI per capita, and ramp up spending to reduce inequalities in access to safely managed drinking water. The study will prove useful to designers of public policy as well as academicians to develop more equitable policies in this domain.

Paper Type: Empirical Research Paper