ESSAY ECONOMETRICS: The impact of air pollution indicators and GDP per capita on human’s life expectancy in 2017

Life expectancy is viewed as one of numerous imperative markers in estimating a countrys prosperity. Investigates somewhat recently have introduced a few factors that have incredible effects on humans existence term. With regards to profoundly advancement in globalization, industrialization, and such, GDP per capita and air contamination have demonstrated to have huge impact.It is unavoidable that industrialization and modernization cause natural contamination. Air contamination, as a piece of it, achieves adverse consequences on humans wellbeing. As of late, the air contamination record has seen a sensational increment. Subsequently, the quantity of individuals contracting respiratory illnesses rose and the assumption for life changed. At no other time has the need of significant understanding with regards to the connection between air contamination and life length been more crucial.Whats more, one more justification for the adjustment of future is the change of GDP per capita. Although consistent endeavors of government in medical care administration are certain, medical services benefits have not yet met each and every person desire. Based on variety in close to home budget, various people have various abilities of managing the cost of clinical consideration. As a result, there exist holes in individuals human ages, which have effects on normal life span all in all. This implies that GDP per capita has a definitive influence in influencing human life expectancy.Due to justifications mentioned above, it is imperative for us to arm ourselves with more profound understanding about the influence of air pollution and GDP per capita to average life expectancy.

FOREIGN TRADE UNIVERSITY

*** ESSAY ECONOMETRICS The impact of air pollution indicators and GDP per capita on

human’s life expectancy in 2017

Class: KTEE218(GĐ1-HK1-2021).1

Lecturer: PhD Nguyễn Thuý Quỳnh

Hoàng Lê Giang Bùi Đăng Thành Bùi Minh Quang Phạm Duy Sơn

Hà Nội, tháng 9 năm 2021

TABLE OF CONTENT ABSTRACT

1 THEORATICAL FRAMEWORK

1.1 Life expectancy

1.1.1 Definition

1.1.2 Measure

1.1.3 Situation

1.2 GDP (Gross domestic product) and GDP per capita

1.2.1 Definition

1.2.2 Components

1.2.3 The effect of GDP per capita on life expectancy

1.3 Air pollution

1.3.1 Definition of pollution

1.3.2 Definition of air pollution

1.3.3 The situation of air pollution

1.3.4 The effect of air pollution on life expectancy

2 BUILD THE MODEL

2.1 Methodology of the study

2.2 Theoretical model specification

2.3 Describe the data

2.3.1 Data source

2.3.2 Statistical description

2.3.3 Correlation matrix between variables

3 ESTABLISHMENT AND STATISTICAL DIMENSION 3.1 Estimate model

3.2 Hypothesis Testing

3.2.1 Are the results consistent with the theory?

3.2.2 Are the regression coefficients statistically significant? 3.2.3 Validation of model

3.3 Recommendations and Solutions

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REFERENCES

GUIDELINES FOR USING MODEL

APPENDIX – DATA TABLE (Source: World Bank 2017)

Life expectancy is viewed as one of numerous imperative markers in estimating a country's prosperity Investigates somewhat recently have introduced a few factors that have incredible effects on human's existence term With regards to profoundly advancement in globalization, industrialization, and such, GDP per capita and air contamination have demonstrated to have huge impact

It is unavoidable that industrialization and modernization cause natural contamination Air contamination, as a piece of it, achieves adverse consequences on human's well-being As of late, the air contamination record has seen a sensational increment Subsequently, the quantity of individuals contracting respiratory illnesses rose and the assumption for life changed At no other time has the need of significant understanding with regards to the connection between air contamination and life length been more crucial

What's more, one more justification for the adjustment of future is the change of GDP per capita Although consistent endeavors of government in medical care administration are certain, medical services benefits have not yet met each and every person desire Based on variety in close to home budget, various people have various abilities of managing the cost of clinical consideration As a result, there exist holes in individuals' human ages, which have effects on normal life span all in all This implies that GDP per capita has a definitive influence in influencing human life expectancy

Due to justifications mentioned above, it is imperative for us to arm ourselves with more profound understanding about the influence of air pollution and GDP per capita to average life expectancy

In hope of providing a deeper insight, scrutinizing a specific case as well as finding the

most ultimate and radical solutions, the editorial group would like to take the topic “The impact

of air pollution indicators and GDP per capita on human’s life expectancy in 2017” in

thorough consideration This essay aims at evaluating the impact of GDP per capita and air

pollution levels of 212 random nations all over the world In the end, we are bound to achieve an objective look into the issue as well as apply appropriate measures to make progress in practicing health care tasks

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This essay includes the following content:

 Literature review

 Research results:

Chapter 1: Theoretical framework

Chapter 2: Building model

Chapter 3: Estimation result and statistical inference

Last but not least, due to the limited amount of time as well as some certain limits in understanding and data collecting, the essay may hardly avoid mistakes The editorial group is always willing to receive feedback from readers so as to complete the essay to the fullest

Many thanks!

1 THEORETICAL FRAMEWORK

1.1 Life expectancy

1.1.1 Definition

1.1.1 Definition

Life expectancy is a statistical measure of the average time a person is expected to live, based on the year they were born, their current age and other demographic factors including gender

1.1.2 Measure

The most commonly used measure of life expectancy is at birth (LEB), which can

 Cohort LEB is the mean length of life of an actual birth cohort (all individuals born

a given year) and can be computed only for cohorts born many decades ago, so that all their members have died

 Period LEB is the mean length of life of a hypothetical cohort assumed to be

exposed, from birth through death, to the mortality rates observed at a given year

1.1.3 Situation

 Life expectancy at birth reflects the overall mortality level of a population It summarizes the mortality pattern that prevails across all age groups in a given year – children and adolescents, adults and the elderly Global life expectancy at birth in

2015 was 71.4 years (73.8 years for females and 69.1 years for males), ranging from 60.0 years in the WHO African Region to 76.8 years in the WHO European Region, giving a ratio of 1.3 between the two regions Women live longer than men all around the world The gap in life expectancy between the sexes was 4.5 years in

1990 and had remained almost the same by 2015

 Global life expectancy expanded by 5 years in the range of 2000 and 2015, the quickest increment since the 1960s Those gains reverse declines during the 1990s, when life expectancy fell in Africa in view of sthe AIDS plague, and in Eastern Europe following the breakdown of the Soviet Union The 2000-2015 increment was most noteworthy in the WHO African Region, where life expectancy expanded

by 9.4 years to 60 years, driven chiefly by enhancements in youngster endurance, and extended admittance to antiretrovirals for treatment of HIV

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Graph 1: Human life expectancy at birth, measured by region, between 1950 and 2050

1.2 GDP (Gross Domestic Product) and GDP per capita

1.2.1 Definition

Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period

Per capita GDP is a measure of the total output of a country that takes gross domestic product (GDP) and divides it by the number of people in the country.\

1.2.2 Components

GDP (Y) is the sum of consumption (C), investment (I), government spending (G) and net exports (X – M)

Y=C+I+G+(X−M)

1.2.3 The effect of GDP per capita on life expectancy:

Graph 2: Plot of life expectancy vs GDP per capita in 2009

The data for this graph is available from the Index Mundi website The data is from 2003

The graph shows that life expectancy at birth, increases at a decreasing rate with respect to GDP per capita (PPP)

The primary justification behind this non-linear relationship is on the grounds that individuals consume both necessities and needs People consume needs to live When an individual's requirements are fulfilled, they could then use whatever is left of their cash on non-necessities Assuming everybody's necessities are fulfilled, any increment in GDP per capita would scarcely influence life expectancy

GDP per capita isn't the only thing that affects life expectancy Government intervention can also affect it A nation could be rich, but if its government ignores the plight of the poor, it could lower the life expectancy

One more justification for the wide variety in the life expectancy for nations with low GDP per capita would be because of the degree of non-market monetary movement For instance, in case there is a ton of resource for cultivating, individuals could be working and have sufficient food to eat, however it wouldn't contribute a lot to the country's GDP

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since they wouldn't buy the food they eat, or selling the food they grow because there is no trade of money

The relationship between life expectancy and GDP per capita is strong enough to be the basis of a regression model Simple functions that increase at a decreasing rate include multiplicative (hyperbolas) and logarithmic functions