Infant Mortality, Education and Financial Development: Evidence from World Level Data Using Heterogeneous Panel Granger Causality Analysis.

This article examines the causal relationships between education, financial development, and infant mortality rate (IMR) using data from 81 developed and developing countries between 1980 and 2015. Employing the Emirmahmutoglu and Rose (2011) Granger causality test for heterogeneous mixed panels, the study finds that education and financial development individually and jointly Granger cause reductions in infant mortality in select countries across Africa, Asia, America, and Europe. The findings highlight that improved education—measured by secondary school enrollment—and a developed financial system—proxied by domestic credit to the private sector—are significant determinants of infant survival, particularly in African and Asian countries where out-of-pocket and aid financing dominate health expenditures. Policy implications suggest prioritizing education in Africa, financial development in America, and a combination of both in Asia to effectively reduce infant mortality, emphasizing the complementary roles of education and financial access in enhancing health outcomes.