How do Poverty, Education, and Health Budgets Impact Life Expectancy? The Mediating Role of Sanitation
https://doi.org/10.56225/finbe.v3i2.319
Keywords:
Poverty, Health Budget, Education, Sanitation, Life ExpectancyAbstract
Life expectancy is a crucial indicator of the well-being and quality of life of a population. Numerous factors influence life expectancy, including government policies in allocating budgets to key sectors. This study examined the relationship between poverty, education, health budgets, and life expectancy, considering the role of sanitation as a mediating factor. This study aims to elucidate how these three sectors interact in affecting life expectancy, and to what extent sanitation acts as a mediating factor in the relationship between budget allocation and life expectancy. This study analysed the effects of poverty, education, and health budgets on life expectancy in Aceh Province, as well as the role of sanitation as a mediating variable. Secondary data in the form of panel data with 345 observations from 23 districts/cities over 15 periods in Aceh Province from to 2008-2022 were utilised. Panel data regression analysis was employed to estimate the research model, while path analysis and Sobel test were used to assess the mediating role. The results revealed that poverty had a significant negative effect on sanitation, while education and health budgets had significant positive effects. Regarding life expectancy, poverty, education, and sanitation had significant positive effects, but the health budget did not show a significant impact. Furthermore, poverty, education, and health budgets had significant indirect effects on life expectancy through the mediation of sanitation. The indirect effect of poverty on life expectancy through sanitation was negative, while the indirect effect of education on life expectancy through sanitation was positive. This research provides valuable insights for policymakers to optimise budget allocations to increase life expectancy by considering the important role of sanitation as a mediating factor. These findings emphasise the importance of reducing poverty and increasing education to improve sanitation and ultimately enhance life expectancy.
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