THE RELATIONSHIP BETWEEN AIR POLLUTION, ECONOMIC GROWTH, AND LIFE EXPECTANCY: EMPIRICAL EVIDENCE FROM INDONESIA

Bashir, Abdul and Liliana, Liliana and Ariodillah, Hidayat and Suhel, Suhel (2022) THE RELATIONSHIP BETWEEN AIR POLLUTION, ECONOMIC GROWTH, AND LIFE EXPECTANCY: EMPIRICAL EVIDENCE FROM INDONESIA. Jurnal Ilmu Ekonomi, 11 (1). pp. 125-144. ISSN 2087-2046

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Abstract

This study investigates the relationship between air pollution, economic growth, and life expectancy in Indonesia. The observation period during 1985-2019 used time-series data obtained from the World Bank. Quantitative approach by applying two main models, namely the autoregressive distributed lag (ARDL) model by considering the effect of time-lapse and Granger causality with vector error correction method. Research findings prove that air pollution has a negative effect on life expectancy in the long run. Economic growth has a positive effect on life expectancy. In the short run, the current life expectancy is positively influenced by the life expectancy of the previous period. Air pollution has a negative effect on life expectancy, and economic growth has a negative effect on life expectancy. Another finding in the Granger causality model is a two-way relationship between air pollution and life expectancy. Other evidence exists of a two-way relationship between economic growth and air pollution. In addition, evidence of a unidirectional relationship of economic growth with life expectancy in the short run. The cointegration equation shows evidence of a long-run relationship between air pollution, economic growth, and life expectancy.

Item Type:	Article
Uncontrolled Keywords:	Air pollution, Causality, Economic growth, Life expectancy, ARDL
Subjects:	H Social Sciences > HB Economic Theory > HB1-3840 Economic theory. Demography
Divisions:	01-Faculty of Economics > 60201-Development Economics (S1)
Depositing User:	Dr Suhel Suhel
Date Deposited:	27 Apr 2023 05:45
Last Modified:	27 Apr 2023 05:45
URI:	http://repository.unsri.ac.id/id/eprint/96678

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