Domestic Product Research Articles

MONETARY POLICY DYNAMICS AND ECONOMIC PERFORMANCE IN BANGLADESH: AN ARIMA MODEL APPROACH

This study delves into the impact of monetary policy on the economic performance of Bangladesh, utilizing data derived from audited annual reports of the Bangladesh Bank covering the years 2014 to 2022. The central focus of the analysis revolves around Gross Domestic Product (GDP) as the dependent variable, with money supply growth, real interest rate, exchange rate, inflation rate, and repo rate considered as independent variables. Employing two regression models, namely Ordinary Least Squares (OLS) and Autoregressive Integrated Moving Average (ARIMA), the research aims to explore the relationships among these variables. In the OLS regression model, significant associations are identified between GDP and real interest rates, inflation rate, and the repo rate. However, no statistically significant relationships are observed between GDP and money supply growth or the exchange rate. On the contrary, the ARIMA regression model indicates statistical significance for all variables, except the exchange rate, concerning their impact on GDP. These findings suggest that monetary policy plays a substantial role in shaping the economic growth of Bangladesh, with real interest rates, inflation rates, and repo rates exerting particular influence. The lack of a significant relationship between the exchange rate and GDP in the ARIMA model implies that other factors, potentially external to the country, may have a more dominant influence on exchange rate dynamics during the study period. This research contributes to a deeper understanding of the complex interplay between monetary policy and economic performance in Bangladesh, offering valuable insights for policymakers and stakeholders.

Rapid cost-effectiveness analysis: hemodialysis versus peritoneal dialysis for patients with acute kidney injury in Rwanda

BackgroundTo ensure the long-term sustainability of its Community-Based Health Insurance scheme, the Government of Rwanda is working on using Health Technology Assessment (HTA) to prioritize its resources for health. The objectives of the study were to rapidly assess (1) the cost-effectiveness and (2) the budget impact of providing PD versus HD for patients with acute kidney injury (AKI) in the tertiary care setting in Rwanda.MethodsA rapid cost-effectiveness analysis for patients with AKI was conducted to support prioritization. An ‘adaptive’ HTA approach was undertaken by adjusting the international Decision Support Initiative reference case for time and data constraints. Available local and international data were used to analyze the cost-effectiveness and budget impact of peritoneal dialysis (PD) compared with hemodialysis (HD) in the tertiary hospital setting.ResultsThe analysis found that HD was slightly more effective and slightly more expensive in the payer perspective for most patients with AKI (aged 15–49). HD appeared to be cost-effective when only comparing these two dialysis strategies with an incremental cost-effectiveness ratio of 378,174 Rwandan francs (RWF) or 367 United States dollars (US$), at a threshold of 0.5 × gross domestic product per capita (RWF 444,074 or US$431). Sensitivity analysis found that reducing the cost of HD kits would make HD even more cost-effective. Uncertainty regarding PD costs remains.Budget impact analysis demonstrated that reducing the cost of the biggest cost driver, HD kits, could produce significantly more savings in five years than switching to PD. Thus, price negotiations could significantly improve the efficiency of HD provision.ConclusionDialysis is costly and covered by insurance in many countries for the financial protection of patients. This analysis enabled policymakers to make evidence-based decisions to improve the efficiency of dialysis provision.

THE EFFECT OF INFLATION, EXPORT-IMPORT AND INTEREST RATES ON SALES THROUGH GDP/GDP MODERATION VARIABLES

This study aims to determine the effect of inflation, export-import, interest rates on sales in state-owned pharmaceutical holding companies with moderating variables of Gross Domestic Product (GDP). The type of research used is quantitative with primary and secondary data sources related to inflation, export-import, interest rates, GDP and sales. The data used is a combination of time series data for 2018-2022 and cross-section which is then referred to as panel data. The study was also conducted in more depth using a research instrument in the form of a questionnaire with respondents as many as six people who had positions as department heads in the parent company of Pharmaceutical SOEs. Data analysis techniques use multiple linear regression analysis and Moderating Regression Analysis. The results showed that simultaneously the variables of inflation, export-import and interest rates had a positive and significant effect on sales. Meanwhile, the moderation variable, namely GDP, partially affects sales, but cannot moderate the influence of inflation and export-import both in terms of strengthening and weakening the influence of the independent variable on the dependent variable. Other research results show GDP can be a pure moderator of the influence of interest rates on sales. This research has limitations, namely the variables used are macro, therefore for future research it is expected to be able to conduct research using micro variables in the economy. Keywords: Inflation, Export-Import, Interest Rate, GDP, Sales and Holding Company of SOEs.

An Application for Prediction of World Countries GDP

Abstract: Gross Domestic Product (GDP) is an important metric for assessing the economic well-being of a nation. In this research paper, we will employ and compare multiple machine learning algorithms to predict the GDP across multiple countries and areas, including Linear Regression, SVM, Gradient boosting, and Random Forest. Ultimately created an API where users can enter the current values of parameters on which GDP depends, to get a more accurate prediction

Do FDI And Trade Openness Affect Economic Growth Differently Across Income Groups? Case Studies From Asian Countries

This study examines the nexus between foreign direct investment (FDI), trade openness (TRO) and economic growth for selected 11 high-income and 22 middle- and low-income Asian countries within a model using a more recent panel dataset over the period 2000–2021. The cointegration test has been applied in this study, which shows that whether there is a long-term interrelationship between FDI and economic growth, which we focus on in particular, and then the covariance matrix estimators that are developed by Driscoll and Kraay are used. Our findings indicate that there is a positive relationship between FDI and TRO, and economic growth for high-income countries, whereas the relationship between FDI and economic growth is negative for middle- and low-income countries. This study provides insights on why governments and policy makers in developing countries should focus on prioritizing domestic investment and production strategies for sustainable economic growth rather than simply emphasizing the attractiveness of FDI and the indispensability of import-oriented trade liberalization.

Determination of Some Physicochemical Properties of Binary Biodiesel and Binary Biodiesel-Diesel Blend Fuels Obtained from Waste Pumpkin Seed- Camelina Oils

The primary aim of utilizing biodiesel is to reduce dependency on fossil fuels, decrease harmful emissions, and promote the use of renewable energy sources. Studies on biodiesel commonly revolve around singular biodiesel-petroleum diesel blends. Binary biodiesel is generally obtained by mixing different types of biodiesel or blending these mixtures with petroleum diesel. The combination of these diverse feedstocks with distinct properties can offer varying characteristics and benefits. Many studies regarding liquid biofuels primarily focus on blends of singular biodiesel with diesel. Raw materials constitute a substantial portion of the cost in biodiesel production. Hence, efforts have been made to favor non-edible and waste products as raw materials. Additionally, products that are suitable for cultivation in Turkey and easy to obtain as raw materials, supporting domestic biofuel production, have been chosen. Biodiesels obtained from waste pumpkin seeds and linseed oils through the transesterification method were blended at volumetric ratios of 1:1 and 1:3 to obtain binary biodiesel fuels (C50P50, C25P75, and C75P25). The binary biodiesel-diesel blend fuels were achieved by blending different volume ratios of binary biodiesel fuels (C25P25D50 and C10P10D80) with traditional petroleum diesel after their preparation. Subsequent analyses focused on determining the physicochemical properties (density, kinematic viscosity, flash point, water content, calorific value, cold filter plugging point, and copper strip corrosion) of the prepared binary biodiesel and binary biodiesel-diesel blend fuels. Compliance with biodiesel standards (EN 14214, ASTM D-6751) was observed for all fuels, and the results were compared with the reference fuel, diesel (petroleum). According to the analysis results, all the tested fuels met the standards, with the C10P10D80 blend fuel displaying the closest resemblance to diesel.

Alternative Solutions to Increase Pension Security Participation in Indonesia

This study aims to analyze alternative solutions to increase the number of pension security participation in Indonesia. The analysis method used in this study is Panel Data Regression. The data used in the panel data analysis are Number of Pension Security Participants, Human Development Index (HDI), Gross Regional Domestic Product (GRDP), Open Unemployment Rate (TPT), Information and Communication Technology Development Index (IPTIK), Young age (15-24) who are not in school, working or training (NEET), Proportion of Average Hourly Wages to Provincial Minimum Wage (Wages), Gini Ratio, Labor Force Participation Rate (TPAK) from 2017-2022 in 33 Provinces in Indonesia. The results of panel data processing, the best model is the Fixed Effect Model with regression results showing that only GRDP variables have a significant positive influence. While the Wage variable has a significant negative effect and the IPM, TPT, IPTIK, NEET, Gini Ratio, TPAK variables have no influence on the Number of Pension Security Participants.

Critical Indicators on Macro Economics adoption in GDP: A systematic review

The study's goal is to investigate how important macroeconomic factors affect certain African nations. These metrics are crucial for the economies' effective development and can be utilized to address the many economic issues that the chosen countries are currently dealing with. 91 publications published between 2004 and 2022 were examined using the Scopus database. With an emphasis on five major factors: Growth Domestic Product (GDP), Interest Rate, Exchange Rate, Inflation, and Foreign Direct Investment this study evaluated and analyzed the literary elements and themes explored in order to give guidance for future research. The findings revealed that Interest rates, inflation, exchange rates, and foreign direct investment (FDI) are some of the macroeconomic variables that can affect the selected African economies. Foreign direct investment has been identified as the most important factor in improving industrial prosperity and living standards in developing economies such as Nigeria, South Africa, Egypt, Algeria, and Morocco after stabilizing interest rates, inflation and currency exchange rates. The study's findings are supported by material that has been published in previous years. Given that a number of recent economic issues have had an impact on the expansion of the economy, it is necessary to evaluate the ideas using panel data from the past 20 years in order to ascertain whether they are still valid. The report highlights the key macroeconomic factors that may have an impact on five different African economies. The study combines a number of economic metrics that have previously been studied separately to assess the trend in the economies it has chosen. To the best of my knowledge, this study is one of the few that evaluates both the individual countries used and the indicators in general.

Investment and Sustainability Incentives for Msmes

The government continues to make efforts to increase the role of Micro, Small and Medium Enterprises after Covid 19 as the national economy recovers. A number of economic policies that focus on improving the MSME sector are intended to ensure that this sector grows and develops again in the future. In the national economy, MSMEs continue to make a major contribution to economic development, job creation, equal distribution of people's income, and providing products and services for the community. On the other hand, MSMEs are a source of state revenue to finance development. In the midst of unstable economic conditions, efforts to increase Gross Domestic Product originating from this sector continue to be made. MSMEs are expected to grow again in the long term and become a source of sustainable financial potential. The government, through fiscal policy, provides wider space for MSMEs, the roots of which become economic society, which absorbs the workforce. Through fiscal policy, the government can provide investment incentives to MSMEs. This fiscal policy is aimed at providing relief in fulfilling tax obligations and encouraging MSME activities to grow and develop again after Covid 19, which has had a negative impact on MSMEs. Through incentives, MSMEs have more freedom to increase production. Investment incentives are also intended to increase the capacity of MSMEs to fulfill tax obligations.

Evaluating renewable energy consumption efficiency and impact factors in Asia-pacific economic cooperation countries: A new approach of DEA with undesirable output model

Balancing economic growth with environmental protection is a global priority. Both developed and developing nations face the challenge of optimizing renewable energy use to achieve sustainable development while minimizing ecological harm. This study employs the Data Envelopment Analysis (DEA) model, incorporating undesirable output, to assess the efficiency of renewable energy consumption across 21 member countries of the Asia-Pacific Economic Cooperation (APEC) from 2011 to 2020. The main variables include foreign direct investment, total energy consumption, total renewable energy capacity as inputs, and gross domestic product growth and greenhouse gas emissions as desired outputs. Results reveal varying levels of renewable energy consumption efficiency, with Brunei, Japan, South Korea, and Hong Kong exhibiting the highest efficiency, while Russia, China, and Vietnam demonstrate the lowest. Notably, developed nations display greater efficiency in utilizing renewable energy compared to their developing counterparts. Moreover, optimizing foreign direct investment, renewable energy consumption, and total renewable energy capacity can enhance overall energy efficiency. By leveraging empirical evidence and estimation techniques, the study provides actionable recommendations for policymakers, emphasizing the pivotal role of financial development and green finance initiatives in promoting sustainable energy development across APEC member countries.

International application of global forest product model and the reference to China

PurposeThis article summarizes the international scientific research output of global forest product models, infers future research trends and provides reference for quantitative analysis and mathematical modeling of Chinese forest product problems, with the aim of contributing to promoting domestic production of Chinese forest products and strengthening international trade competitiveness of forest products.Design/methodology/approachIn 1999, Joseph Buongiorno, a scholar at the University of Wisconsin in the United States of America, proposed the global forest products model (GFPM), which was first applied to research in the global forestry sector. GFPM is a recursive dynamic model based on five assumptions: macroeconomics, local equilibrium, dynamic equilibrium, forest product conversion flow and trade inertia. Using a certain year from 1992 to present as the base period, it simulates and predicts changes in prices, production and import and export trade indicators of 14 forest products in 180 countries (regions) through computer programs. Its advantages lie in covering a wide range of countries and a wide variety of forest products. The data mainly include forest resource data, forest product trade data, and other economic data required by the model, sourced from the Food and Agriculture Organization (FAO) of the United Nations and the World Bank, respectively.FindingsCompared to international quantitative and modeling research in the field of forest product production and trade, China's related research is not comprehensive and in-depth, and there is not much quantitative and mathematical modeling research, resulting in a significant gap. This article summarizes the international scientific research output of global forest product models, infers future research trends, and provides reference for quantitative analysis and mathematical modeling of Chinese forest product problems, with the aim of contributing to promoting domestic production of Chinese forest products and strengthening international trade competitiveness of forest products.Originality/valueOn the basis of summarizing and analyzing the international scientific research output of GFPM, sorting out the current research status and progress at home and abroad, this article discusses potential research expansion directions in 10 aspects, including the types, yield and quality of domestic forest product production, international trade of forest products, and external impacts on the forestry system, in order to provide new ideas for global forest product model research in China.

Financial Development and Real Gross Domestic Product in Rwanda

Real gross domestic product as a macro-economic indicator measures the value of economic output after adjustment for price changes. In this regard, due to the role played by financial development in economic growth, financial intermediation has been regarded as an important factor in boosting gross domestic product in the both developed economies and developing economies. The study investigated the effect of financial development on Real Gross Domestic Product in Rwanda. The study adopted e<i>x post facto </i>design. Time series data were collected from 2011-2022 and Ordinary Least Squares (OLS) was deployed. Findings revealed that financial liberalization, domestic credit to private sector, monetary policy rate, market capitalization and all share index jointly and significantly influenced real gross domestic product (<i>Adj. R<sup>2</sup> =</i> 78.65%<i>, p = </i>0.009028 < 0.05, F-stat = 9.108778) in Rwanda. The study concluded that financial development enhanced real gross domestic product in Rwanda. It was recommended that the government of Rwanda should improve on real gross domestic product by improving financial development through more liberalization of the financial sector, expansion of domestic credit to the private sector, market capitalization, all share index and use of monetary policy rate as effective channel of monetary transmission mechanism in the economy.

The Role of Taxes In Developing the Industrial Sector in Iraq for the Period (2015-2021)

The Iraqi economy contends with structural production imbalances attributable to challenges afflicting the industrial sector, thereby engendering a monolithic economic landscape bereft of diversification to address these concerns and realize developmental imperatives, it becomes imperative to formulate strategies and policies conducive to stimulating, supporting, and safeguarding the industrial sector. Thereby ameliorating the economic landscape and rectifying distortions in the production structure within this framework, taxes emerge as a pivotal instrumentality for fostering industrial sector growth, employing the tax burden index and the industrial sector's contribution ratio to the gross domestic product, the researcher endeavors to elucidate the nuanced relationship between taxes and industrial sector growth in Iraq. The study's primary objective is to comprehensively analyse the tax contribution ratio and the industrial sector in Iraq, discerning the intricate interplay between taxes and industrial growth to enhance its contribution to the gross domestic product and facilitate economic diversification. The findings underscore a nuanced equilibrium, spotlighting the instrumental role of taxes in directly or indirectly catalyzing industrial sector growth through a repertoire of strategic tools, including tax incentive policies and the exemption of imported capital goods, such as machinery, equipment, and apparatus, from customs duties. This strategic approach aims to buttress producers by alleviating the fiscal burden, reducing operational costs, augmenting profitability, fostering the adoption of cutting-edge technology, and refining methodologies intrinsic to the production process. Paper: A research paper derived from a dissertation

TRADE POLICY, EXCHANGE RATE DYNAMICS AND MANUFACTURING SECTOR OUTPUT IN NIGERIA

Two macroeconomic policies that have impacted on Nigerias manufacturing industry are trade and exchange rate policies. From 1981 to 2022, this study looked at the connection between Nigerias real industrial production, exchange rate, and trade policy. Real manufacturing GDP served as a stand-in for real manufacturing output, and explanatory variables similar to the exchange rate, per capita income, monetary policy rate, manufacturing capacity utilization rate, import to export ratio, and dummy variables for structural adjustment were employed. The model was analyzed in the research by means of autoregressive distributed lag (ARDL) technique. The outcomes showed that while exports as a ratio of gross domestic product (EXGDP). Significantly boosted real manufacturing output (RMO) both in the near and distant future times. Imports as a ratio of gross domestic product (IMGDP) had a negative impact on RMO. Trade liberalization by DSAP had a significant benefit on actual manufacturing production over the long run, while it had a minimally positive impact on RMO during the near term. The rate of exchange has a short-term favorable influence on RMO but a long-term negative one. To increase manufacturing output, the federal government of Nigeria should align its trade policy with the export promotion industrialization plan. KEYWORDS: Trade Policy, Exchange Rate Dynamics, Manufacturing Output, ARDL, Nigeria.

The External Financial Crises and Their Role in The Economic Growth Fluctuations in Iraq During the Period (2004-2021)

Financial crises are a concerning and essential phenomenon due to their severe and dangerous negative impact on global stability. These crises have also spread to developing and advanced countries due to their financial and economic openness. The adverse effects of financial crises have had repercussions on global oil prices, which in turn affected economic growth in Iraq, given its dependence on the oil sector. The main objective of the research was to examine the impact of the global financial crisis on economic growth in Iraq. The research utilized deductive methodology and descriptive analysis as the appropriate approach to achieve the research goal and understand the effect of global financial crises on economic growth. The research begins with the hypothesis that the economic growth in Iraq is affected by global financial crises through oil prices in international markets. The researcher utilizes specific indicators of the Iraqi economy, including oil prices, public revenues, public expenditures, and public debt, to demonstrate the impact of global financial crises on these indicators and how this impact reflects on economic growth in Iraq, represented by the gross domestic product (GDP). The research findings highlight several impacts on the Iraqi economy due to various financial crises. These include the 2009 mortgage crisis, which decreased crude oil prices in the global market due to the global economic recession. Additionally, the financial crisis since the second half of 2014 was caused by a decline in crude oil prices due to sluggish global economic growth. Furthermore, the COVID-19 crisis at the end of 2019 had significant financial consequences, accompanied by decreased oil prices. It is evident that the Iraqi economy is directly and unexpectedly affected by financial crises through the oil markets, as the country heavily relies on oil revenues, which constitute a large proportion of the GDP. Paper: Research paper

The Role of the Government's Self- Depth in Bearing Financial Pressures in Iraq for the Period (2006-2022)

This study aimed at analyzing the government's self-financing depth in withstanding financial pressures in Iraq during the period (2006-2022). The study assumed that increasing government's financial capacity was having a positive impact on facing financial pressures of public expenditure burdens and economic non-stability in Iraq. The study relied on the inductive and data analysis method to verify the hypothesis of the study and access to results. With reference to the use of the ratio of oil revenues to GDP as deputy for self- financing depth due to the Iraqi government's heavy reliance on oil revenues to finance the general budget. It also used the following indicators as deputy financial pressure: the ratio of public expenditure, consumption, investment, and public debt to gross domestic product, tax effort index, monetary stability coefficient index and exchange rate discipline index. The study found that the financial capacity of the Iraqi government relied heavily on volatile self-financing depending on the volatility of oil revenues in financing current expenditures, which reduced the financial capacity to stand financial pressure. It’s reflected in the government's high financial burden and the existence of economic non-stability (inflation pressure, external debt pressure, foreign currency exchange pressure) in Iraq. Paper type: Research paper.

Faded Aattitude Nationalism Generation Millennialsto Education Pancasila and Citizenship

This study aim for know reason it faded attitudenationalism of the millennial generation while knowing how to ways that can arouse their nationalist attitudes through Education Pancasila and citizenship as well as roles family,education, and the government in awakening the spirit of nationalism. The method used in this research is literature study by referring to sources such as journal articles, books and articles from the Internet. The results of this study indicate that the cause of the fading the nationalist attitude of the millennial generation is caused by 2 factors: factors internal and factor external. Factor internal covers there is flavor disappointed from in self a millennial, for example flavor disappointed to performancegovernment. External factors include the development of globalization which cause lots change. Method grow attitude Millennial generation nationalism can be done by getting used to it using domestic products, providing insight into the importance of having a spirit of nationalism, as well as equipping them with give material about attitude nationalism and defend country through education pancasila and citizenship.

Does Interest Rate Impact Economic Growth? Empirical Insight from Nepal

Background: The relationship between interest rates, inflation, and non-performing loans on economic growth is debated in theoretical and empirical research. Hence, the study examines the effect of interest rate, inflation rate, and non-performing loans on the economic growth in Nepal. Methods: The paper incorporated quarterly data spanning nine years (2011-2019) and consisted of 972 observations. The study collected secondary data from the official websites of Nepal Rastra Bank and the Ministry of Finance, Nepal. The study used a panel cointegration test and random-effect models to examine the long-run relationship between predictor and response variables. Results: The impact of lending rate (LR) on economic growth is positive and statistically significant (β1 = 0.017, p < .01) in Nepal. Similarly, the coefficient of LNCPI (β2 = 0.687, p < .01) suggests that there is a positive relationship between the Consumer Price Index (CPI) and the Gross Domestic Product (GDP). The regression coefficient of CPI (β3 = -.001, p > .05) suggests that an increase in non-performing loans (NPL) led to a decrease in GDP. However, this relationship was not statistically significant for the Nepalese Economy. Conclusion: The study concludes that the interest and inflation rates positively affect Nepal's economic growth. The findings indicate that policymakers, such as Nepal Rastra Bank, should maintain interest rates at an appropriate level. Novelty: This study is novel because it thoroughly analyzes numerous observations over long periods to investigate the impacts of loan rates, inflation rates, and non-performing loans on economic growth in Nepal, improving its generalizability.

Mitigating environmental impacts of food consumption in the European Union: Is the power truly on our plates?

In the context of the sustainable use of our planet's resources, there is a pressing need for environmentally friendly diets. Moreover, health issues linked to inadequate nutrition are rising, further emphasising the need for more balanced diets. The aim of the planetary health diet developed by the EAT-Lancet commission is to sustainably feed 10 billion people in 2050 while not exceeding planetary limits. According to these guidelines, the EU should reduce red meat intake by 80 % and multiply legume intake by 15. This significant shift from animal to plant-based proteins could modify trade partnerships and EU dependency on plant-based proteins for animal feed, currently discussed within the EU protein strategy. This study evaluates land use changes and environmental consequences of this change in dietary patterns by applying a consequential life cycle assessment approach combined with an agri-economic model, additionally assessing if this diet shift could help to achieve EU Green Deal targets. For this simulation, the partial equilibrium model CAPRI was used, which is a global agricultural market model focusing on Europe, including bilateral trade worldwide. We found that the diet shift results in gaps between domestic demand and supply which are compensated by increased imports of legumes and additional exports of red meat from the EU due to an increased demand for red meat in non-EU countries, as a consequence of decreased red meat prices. Land use changes within NUTS-2 regions indicate broad disparities depending on regional specialisation and profitability. The results from our life cycle assessment show limited benefits for most environmental impact categories within the EU given the considerable change in diets. GHG emissions from the agricultural sector would be reduced by 9 %, representing 4 % of the change needed to achieve overall EU GHG emission targets i.e., a reduction of 55 % by 2030 compared to 1990 levels. Yet, the mitigation potential allocated to EU production of shifting diets could be greater if international trade were not offsetting expected local environmental benefits. Indeed, if EU red meat and animal feed production were reduced proportionally to the demand shift, domestic legume production could hypothetically be extended in the available agricultural areas coming along with improvements in all environmental impact categories. Scientific contribution and media regularly point out the significant influence of individual consumer behaviour as an impulse for change: “the power is on our plates”, while the results of our simulations show that this holds only to a limited extent. To minimise environmental pollution, strong supply-side policies are needed to complement the power on the consumers' plates.

Unveiling the health consequences of air pollution in the world’s most polluted nations

Air pollution poses a persuasive threat to global health, demonstrating widespread detrimental effects on populations worldwide. Exposure to pollutants, notably particulate matter with a diameter of 2.5 µm (PM2.5), has been unequivocally linked to a spectrum of adverse health outcomes. A nuanced understanding of the relationship between them is crucial for implementing effective policies. This study employs a comprehensive investigation, utilizing the extended health production function framework alongside the system generalized method of moments (SGMM) technique, to scrutinize the interplay between air pollution and health outcomes. Focusing on a panel of the top twenty polluted nations from 2000 to 2021, the findings yield substantial insights. Notably, PM2.5 concentration emerges as a significant factor, correlating with a reduction in life expectancy by 3.69 years and an increase in infant mortality rates by 0.294%. Urbanization is found to increase life expectancy by 0.083 years while concurrently decreasing infant mortality rates by 0.00022%. An increase in real per capita gross domestic product corresponds with an improvement in life expectancy by 0.21 years and a decrease in infant mortality rates by 0.00065%. Similarly, an elevated school enrollment rate is associated with a rise in life expectancy by 0.17 years and a decline in infant mortality rates by 0.00032%. However, a higher population growth rate is found to modestly decrease life expectancy by 0.019 years and slightly elevate infant mortality rates by 0.000016%. The analysis reveals that per capita greenhouse gas emissions exert a negative impact, diminishing life expectancy by 0.486 years and elevating infant mortality rates by 0.00061%, while per capita energy consumption marginally reduces life expectancy by 0.026 years and increases infant mortality rates by 0.00004%. Additionally, economic volatility shock presents a notable decrement in life expectancy by 0.041 years and an increase in infant mortality rates by 0.000045%, with inflationary shock further exacerbating adverse health outcomes by lowering life expectancy by 0.70 years and elevating infant mortality rates by 0.00025%. Moreover, the study scrutinizes the role of institutional quality, revealing a constructive impact on health outcomes. Specifically, the institutional quality index is associated with an increase in life expectancy by 0.66% and a decrease in infant mortality rates by 0.0006%. Extending the analysis to examine the nuanced dimensions of institutional quality, the findings discern that economic institutions wield a notably stronger positive influence on health outcomes compared to political and institutional governance indices. Finally, the results underscore the pivotal moderating role of institutional quality in mitigating the deleterious impact of PM2.5 concentration on health outcomes, counterbalancing the influence of external shocks, and improving the relationships between explanatory variables and health outcome indicators. These findings offer critical insights for guiding evidence-based policy implications, with a focus on fostering resilient, sustainable, and health-conscious societies.