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

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. Journal of Emerging Economies and Islamic Research, 6 (3). pp. 1-14. ISSN 2289 - 2559

Abstract

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.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Yap, Kok Wooi
UNSPECIFIED
Selvaratnam, Doris Padmini
UNSPECIFIED
Subjects: H Social Sciences > HJ Public Finance > Expenditures, Public
Divisions: Universiti Teknologi MARA, Selangor > Puncak Alam Campus > Faculty of Business and Management
Journal or Publication Title: Journal of Emerging Economies and Islamic Research
UiTM Journal Collections: UiTM Journal > Journal of Emerging Economies and Islamic Research (JEEIR)
ISSN: 2289 - 2559
Volume: 6
Number: 3
Page Range: pp. 1-14
Keywords: Performance, Islamic bank, Data envelopment analysis, DEA, Malmquist
Date: September 2018
URI: https://ir.uitm.edu.my/id/eprint/32274
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ID Number

32274

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