Life Expectancy and Economic Growth Synergy in SAARC Nations: Short and Long-Term Analysis.

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.