Fostering economic growth in Somalia: the role of life expectancy and environmental degradation

Abstract

Economic growth is a primary objective for countries worldwide since it has a pivotal impact on enhancing living standards, alleviating poverty, and promoting general societal well-being. Hence, this study examines the connection between life expectancy, environmental pollution, and economic growth in Somalia by using time-series data from 1990 to 2020. The study employs the autoregressive distributed lag (ARDL) bound test and fully modified ordinary least squares (FMOLS) method. The empirical results of the bound test indicate that life expectancy is statistically significant and positively affects economic growth in the long run. However, it does not significantly affect economic growth in the short run. Furthermore, environmental pollution does not significantly impact economic growth in the long run but enhances it in the short run. The study indicates that life expectancy improves economic growth. Based on the empirical evidence, the study provides several policy implications, including public health initiatives, health-related infrastructure, and sustainable environmental practices, which are recommended.