Vol. 7 No. 2 July 2024
Analyzing the Determinants of Life Expectancy in Bangladesh: A VECM
Authors/ Publisher: 1. Mohammad Amzad Hossain /2. Md. Obidul Haque
Abstract:
This study elucidated the influence of financial development, economic growth, carbon emissions, population growth and food production on life expectancy in the context of Bangladesh. The data utilized encompasses the period from 1974 to 2019. The utilization of the Vector Error Correction Model (VECM) approach allows for the examination of both short-run and long-run correlations among variables. The ADF test was conducted to determine the stationarity of all variables, revealing that they are integrated of order 1. This implies that all variables exhibit stationarity when differenced once. The Johansen cointegration test was utilized to determine the presence of cointegrating equations in the variable. The outcomes of the trace test indicated that there is a maximum of two cointegrating equations. Economic growth and financial development have a positive impact on life expectancy, whereas carbon emissions a have a negative impact. Economic progress and financial development make life expectancy better, while carbon emissions make it worse. The findings show that policies should be put in place to reduce carbon emissions and slow population growth while also boosting economic growth, financial development and food production to improve people's health. Bangladesh should consider implementing policies such as strengthening financial development, adopting clean and green technology, and enforcing rigorous environmental pollution regulations. These measures are essential for enhancing life expectancy, improving overall human well-being, and ultimately achieving sustainable development goals.
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