Environmental, financial, and macroeconomic determinants of life expectancy in E7 economies

This paper analyzes the long-run associations between environmental, financial, macroeconomic, and healthcare factors on life expectancy in E7 countries over the period 1990-2023. Special emphasis is placed on PM2.5 air pollution exposure, which has become one of the key environmental factors influencing population health and longevity. The analysis examines the effects of domestic credit to the private sector (DCPS), foreign direct investment (FDI), inflation (INF), exposure to PM2.5 air pollution (PM2.5), immunization coverage (IMM), and hospital beds per 1,000 people (HBEDS) using life expectancy (LE) as the dependent variable. Second-generation panel unit root and cointegration tests are used in the empirical framework. FMOLS and DOLS estimators are then used. The CCEMG estimator and FE-DKSE are used to evaluate robustness. The findings show a stable long-run connection between the variables. Financial development and FDI are positively associated with LE, but inflation and PM2.5 exposure are negatively associated with LE. Immunization coverage is generally positively associated with life expectancy, while hospital beds are negatively associated with LE. The robustness estimations generally support the baseline findings. This study adds to existing research by examining how finances, economy, environment, and health care impact LE in the E7 countries. It takes into account the connections and differences between these nations. The findings highlight that financial growth, economic stability, clean environments, and preventive healthcare play crucial roles in long-term health outcomes for large emerging economies.