Abstract:
This study examines the dynamic relationship between economic growth and life
expectancy across SAARC countries, focusing on short and long-term
perspectives. The analysis employs Granger causality tests to investigate the
direction of influence of per capita GDP growth (PGDP) and life expectancy (LE),
while cointegration analysis examines their long-run equilibrium relationship.
The Granger causality results reveal diverse patterns across the region. A
bidirectional causality exists in Afghanistan, indicating mutual reinforcement
between economic and health improvements. Bhutan and Nepal exhibit
unidirectional causality from economic growth to LE, whereas the Maldives
show the reverse, with LE influencing economic growth. No significant shortterm
causality is observed in Bangladesh, India, Pakistan, and Sri Lanka.
Cointegration tests confirm a stable long-term relationship between economic
growth and LE in all countries except Bhutan. This suggests that, despite shortterm
differences, most SAARC nations experience long-term co-movement
between these key development indicators. The findings underscore the
importance of integrated development strategies that simultaneously promote
economic and health outcomes. Policymakers are encouraged to recognise the
interdependence of health and economic growth, designing context-specific
interventions to achieve sustainable development and the objectives of SAARC.
This study contributes to the broader literature on development economics by
offering regional insights into the growth-health nexus.
