The linkages between life expectancy and economic growth: some new evidence

Abstract

Using panel cointegration analysis and panel causality test, this paper investigates the long- and short-run linkages between life expectancy and economic growth for 65 countries within three levels of aging from 1980 to 2014. The estimation results indicate that there are significantly positive long-run relationships between life expectancy and GDP per capita (or total GDP) in most countries, but the specific relationships vary across aging levels. The positive impact of life expectancy on economic growth is stronger in group with higher level of aging. The panel causality tests reveal that there is short-run unidirectional causality running from life expectancy to economic growth for younger group, whereas there is unidirectional causality running from economic growth to life expectancy only for older group. The above conclusions further imply that population aging is affecting the linkages between life expectancy and economic growth.