The role of resource rents in shaping public health: Evidence from southeast Asia

Abstract

This research investigates the intricate relationship between natural resource rents and population health, particularly focusing on life expectancy at birth across Southeast Asia from 1974 to 2023. The study explores how natural resource revenues despite fueling economic development can paradoxically exert a negative impact on health outcomes, largely due to the environmental degradation associated with resource extraction. It underscores the need for robust resource management strategies that effectively channel revenues into public health systems, education and sustainable infrastructure. Additionally, the study highlights the positive influence of Foreign Direct Investment (FDI) in enhancing life expectancy by fostering improvements in healthcare systems and infrastructure, particularly in developing nations. Urbanization emerges as a key driver of improved public health with advancements in sanitation, healthcare access and infrastructure contributing to increased life expectancy. Drawing on empirical evidence, the study provides critical policy implications for Southeast Asian nations, advocating for diversified economic models, inclusive healthcare investments and regional cooperation to mitigate the adverse effects of resource dependency. The findings offer actionable insights for balancing economic growth with improved health outcomes, positioning resource wealth as a catalyst for equitable development and sustainable health advancements in the region.