Exploring the Link Between Public Health and External Debt in Saudi Arabia

Abstract

This research represents the first study to investigate the relationship between life expectancy and external debt—both short-term and long-term—in the context of Saudi Arabia. Spanning the period from 1974 to 2023, the study aims to analyze how fluctuations in external debt levels may influence public health outcomes, specifically life expectancy, in the country. By focusing on both short-term and long-term debt, this study examines their direct effects on life expectancy, providing valuable insights into how national debt strategies may impact the well-being of the population. This analysis is crucial for policymakers seeking to understand the broader socio-economic consequences of debt accumulation and its potential influence on the quality of life in Saudi Arabia. The results of this study confirm the existence of a long-term relationship between life expectancy and external debt, both short-term and long-term, in Saudi Arabia. The findings reveal a unidirectional causal relationship, where changes in life expectancy influence both short-term and long-term external debt. However, no evidence of a causal relationship was found running from external debt to life expectancy. These results suggest that improvements or declines in life expectancy may have an impact on the country's debt levels, but the reverse effect—where debt levels influence life expectancy—was not observed in this analysis. As a result, Saudi Arabia has required external funding to support its investments, and this need persists today. There has been a consistent gap between investments and savings in the country, which Saudi Arabia may have addressed by utilizing external debt to bridge this gap. This study suggests that further research is needed to explore the direct relationship between external debt and life expectancy, particularly in the context of developing countries.