Air pollution, health expenditure and economic growth in MINT countries: a trivariate causality test

Abstract

Purpose

This paper examines the long-run and dynamic causal relationship among air pollution, health expenditure and economic growth in Mexico, Indonesia, Nigeria and Turkey (MINT countries).

Design/methodology/approach

The bounds test approach to cointegration and causality test was employed on data covering 1995–2018.

Findings

The study shows evidence of a long-run relationship among the variables in MINT countries and the causality test confirms the existence of a bidirectional causal nexus between health expenditure and economic growth in the four countries. It also confirms that there is a bidirectional causal relationship between carbon dioxide (CO₂) emission and economic growth, except in Nigeria where a unidirectional causal relationship was found running from CO₂ emissions to economic growth. In addition, a bidirectional causal relationship was found between air pollution and health expenditure in Turkey, while no causal relationship was found among these variables in Nigeria.

Research limitations/implications

This study is limited by available data and it only focuses on four emerging economies. To address this, future studies can expand this scope to more emerging economies with severe air pollution and also extend the scope when more recent data becomes available.

Practical implications

This study suggests that pollution standards in MINT countries should be monitored and enforced with transparency so as to mitigate its health implications and ensure the sustainability of economic growth.

Social implications

The study confirms the importance of keeping air pollution as low as possible because of its negative effect on health and economic output.

Originality/value

The study accounts for the complexity of each MINT country instead of providing a general discussion on the relationship between air pollution, health expenditure and economic growth in MINT countries.

Citation

Ibukun, C.O. and Omisore, W.M. (2022), "Air pollution, health expenditure and economic growth in MINT countries: a trivariate causality test", Journal of Economic and Administrative Sciences, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JEAS-03-2022-0074