Influence of Government Effectiveness, Health Expenditure, and Sustainable Development Goals on Life Expectancy: Evidence from Time Series Data

Abstract

This study investigates the influence of government effectiveness, health expenditure, and sustainable development goals (SDGs) on life expectancy in Pakistan. To accomplish this, a systematic analysis was conducted on time series data spanning from 2000 to 2020. Cointegration analysis was utilized to evaluate the long-term integration of all variables, while a comprehensive causality test was performed to investigate the short-term links among government effectiveness, health expenditure, SDGs, and life expectancy. The findings of the Johansen Cointegration test definitively confirmed the presence of long-term cointegration among all variables. In addition, the results of the Granger causality test show that there is a one-way causal relationship between government performance, health spending, and SDGs to life expectancy in the short term. The validation of both enduring and immediate connections among these factors emphasizes the crucial significance of healthcare services in Pakistan. Therefore, it is important to push for more healthcare investments and increased national budget allocations by the Pakistani government. Prioritizing the allocation of resources towards healthcare, bolstering the efficiency of the administration, and attaining SDG targets are all crucial for enhancing life expectancy in Pakistan. The study’s results also carry significant policy implications, underscoring the necessity of strategically implementing health expenditure and SDG targets to enhance human capital and population well-being, as demonstrated by the increased life expectancy.