Empirical analysis of factors influencing the public health expenditure in Malaysia / Yap Kok Wooi and Doris Padmini Selvaratnam.

This study aims to investigate the determinants of public health expenditure in Malaysia. An Autoregressive Distributed Lag (ARDL) approach proposed by Pesaran & Shin (1999) and Pesaran et al. (2001) is applied to analyse annual time series data during the period from 1970 to 2017. The study foc...

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Main Authors: Yap, Kok Wooi, Selvaratnam, Doris Padmini
Format: Article
Language:English
Published: Universiti Teknologi MARA Selangor 2018
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/32274/
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author Yap, Kok Wooi
Selvaratnam, Doris Padmini
author_facet Yap, Kok Wooi
Selvaratnam, Doris Padmini
author_sort Yap, Kok Wooi
building UiTM Institutional Repository
collection Online Access
description This study aims to investigate the determinants of public health expenditure in Malaysia. An Autoregressive Distributed Lag (ARDL) approach proposed by Pesaran & Shin (1999) and Pesaran et al. (2001) is applied to analyse annual time series data during the period from 1970 to 2017. The study focused on four explanatory variables, namely per capita gross domestic product (GDP), healthcare price index, population aged 65 years and above, as well as infant mortality rate. The bounds test results showed that the public health expenditure and its determinants are cointegrated. The empirical results revealed that the elasticity of government health expenditure with respect to national income is less than unity, indicating that public health expenditure in Malaysia is a necessity good and thus the Wagner’s law does not exist to explain the relationship between public health expenditure and economic growth in Malaysia. In the long run, per capita GDP, healthcare price index, population aged more than 65 years, and infant mortality rate are the important variables in explaining the behaviour of public health expenditure in Malaysia. The empirical results also prove that infant mortality rate is significant in influencing public health spending in the short run. It is noted that macroeconomic and health status factors assume an important role in determining the public health expenditure in Malaysia and thus government policies and strategies should be made by taking into account of these aspects.
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spelling uitm-322742020-07-15T03:44:09Z https://ir.uitm.edu.my/id/eprint/32274/ Empirical analysis of factors influencing the public health expenditure in Malaysia / Yap Kok Wooi and Doris Padmini Selvaratnam. jeeir Yap, Kok Wooi Selvaratnam, Doris Padmini Expenditures, Public This study aims to investigate the determinants of public health expenditure in Malaysia. An Autoregressive Distributed Lag (ARDL) approach proposed by Pesaran & Shin (1999) and Pesaran et al. (2001) is applied to analyse annual time series data during the period from 1970 to 2017. The study focused on four explanatory variables, namely per capita gross domestic product (GDP), healthcare price index, population aged 65 years and above, as well as infant mortality rate. The bounds test results showed that the public health expenditure and its determinants are cointegrated. The empirical results revealed that the elasticity of government health expenditure with respect to national income is less than unity, indicating that public health expenditure in Malaysia is a necessity good and thus the Wagner’s law does not exist to explain the relationship between public health expenditure and economic growth in Malaysia. In the long run, per capita GDP, healthcare price index, population aged more than 65 years, and infant mortality rate are the important variables in explaining the behaviour of public health expenditure in Malaysia. The empirical results also prove that infant mortality rate is significant in influencing public health spending in the short run. It is noted that macroeconomic and health status factors assume an important role in determining the public health expenditure in Malaysia and thus government policies and strategies should be made by taking into account of these aspects. Universiti Teknologi MARA Selangor 2018-09 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/32274/1/AJ_YAP%20KOK%20WOOI%20JEEIR%20B%2018.pdf Yap, Kok Wooi and Selvaratnam, Doris Padmini (2018) Empirical analysis of factors influencing the public health expenditure in Malaysia / Yap Kok Wooi and Doris Padmini Selvaratnam. (2018) Journal of Emerging Economies and Islamic Research (JEEIR) <https://ir.uitm.edu.my/view/publication/Journal_of_Emerging_Economies_and_Islamic_Research_=28JEEIR=29.html>, 6 (3). pp. 1-14. ISSN 2289-2559 https://journal.uitm.edu.my/ojs/index.php/JEEIR/
spellingShingle Expenditures, Public
Yap, Kok Wooi
Selvaratnam, Doris Padmini
Empirical analysis of factors influencing the public health expenditure in Malaysia / Yap Kok Wooi and Doris Padmini Selvaratnam.
title Empirical analysis of factors influencing the public health expenditure in Malaysia / Yap Kok Wooi and Doris Padmini Selvaratnam.
title_full Empirical analysis of factors influencing the public health expenditure in Malaysia / Yap Kok Wooi and Doris Padmini Selvaratnam.
title_fullStr Empirical analysis of factors influencing the public health expenditure in Malaysia / Yap Kok Wooi and Doris Padmini Selvaratnam.
title_full_unstemmed Empirical analysis of factors influencing the public health expenditure in Malaysia / Yap Kok Wooi and Doris Padmini Selvaratnam.
title_short Empirical analysis of factors influencing the public health expenditure in Malaysia / Yap Kok Wooi and Doris Padmini Selvaratnam.
title_sort empirical analysis of factors influencing the public health expenditure in malaysia / yap kok wooi and doris padmini selvaratnam.
topic Expenditures, Public
url https://ir.uitm.edu.my/id/eprint/32274/
https://ir.uitm.edu.my/id/eprint/32274/