The Nexus Between Per-capita Income and Life Expectancy in Ghana

This study explores the relationship between health expenditure per capita, per capita income, and life expectancy in Ghana. Using annual time-series data from 2000 to 2022 provided by the World Development Indicators, the analysis examines variables such as life expectancy, per capita income, public health spending per capita, birth rate, employment-to-population ratio, CO<sub>2</sub> emissions per capita, and the proportion of the population with access to safe drinking water and sanitation services. The study also reviews annual trends in life expectancy, per capita income, public health spending, and access to basic services. To analyze short- and long-term relationships among these variables, the research employs the Autoregressive Distributed Lag cointegration approach, preceded by a unit root test to determine stationarity. EViews software is used for the analysis, which includes graphical representations to illustrate trends. The results indicate a negative relationship between health expenditure per capita and life expectancy, while per capita income is positively associated with life expectancy. Cointegration is observed across all variables. Additionally, birth rate and access to sanitation services are positively related to life expectancy, whereas CO<sub>2</sub> emissions per capita are negatively associated with it. The study recommends policies focusing on prioritizing health funding, efficient resource allocation, and strategies to increase individual incomes.