Trade Openness and Life Expectancy Nexus in Less-Developed Countries
by Mercy Laita Palamuleni
International Journal of Trade and Global Markets (IJTGM), Vol. 10, No. 4, 2017

Abstract: The welfare effect of trade on growth is widely studied. However, only a few studies focus on the effects of trade on health. This paper investigates the long-run relationship between international trade and population health, as measured by life expectancy, in 25 less-developed countries (LDCs). Annual data spanning over 1965 to 2013 and panel data techniques that are robust to endogeniety issues and cross-sectional dependence are employed. This study draws two main conclusions: (a) international trade and life expectancy have a positive long-run relationship; and (b) the causal relationship is bi-directional. Implying that trade might be both the cause and the consequence of population health. Consequently, LDCs should adopt policies that promote trade and quality of life, simultaneously.

Online publication date: Wed, 07-Mar-2018

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