The dynamics of financial development, globalisation, economic growth and life expectancy in sub‐Saharan Africa. (14th November 2019)

• Record Type: Journal Article
• Authors: Shahbaz, Muhammad; Shafiullah, Muhammad; Mahalik, Mantu K.
• Is Part Of: Australian economic papers. Volume 58:Number 4(2020)
• Page Start: 444
• Page End: 479
• Publication Date: 2019-11-14
• Subjects: financial development -- life expectancy -- non‐linear causality -- sub‐Saharan Africa; Economics -- Periodicals; Australia -- Economic conditions -- Periodicals; 330
• DOI: 10.1111/1467-8454.12163
• Languages: English
• ISSNs: 0004-900X

Abstract

Abstract : The importance of life expectancy is recognised in the development economics literature because of its increasing effects on labour productivity and economic growth in long‐run. However, no published study to date empirically examines the nonlinear relationships between globalisation, financial development, economic growth and life expectancy in sub‐Saharan African (SSA) countries. Therefore, our study intends to fill this gap by using non‐parametric cointegration test and multivariate Granger causality test towards a non‐linear empirical understanding of the factors affecting the life expectancy. We consider the case of 16 sub‐Saharan African economies using annual data over the period 1970–2012. The empirical analysis indicates that financial development, globalisation and economic growth appear to have a positive impact upon life expectancy in sub‐Saharan African economies, except for Gabon and Togo. Our empirical findings may provide insightful policy implications towards improving population health conditions which are vital for promoting the productivity of labour force and long‐run economic growth in sub‐Saharan African countries. In light of these policy implications, governments should incorporate globalisation, financial development and economic growth as key economic instruments in formulating sustainable developmental policy to promote life expectancy for the people in sub‐Saharan African countries.