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Long Run Analysis between Climate Change, Socio-Economic Factors and Technology on Health Expenditure in Malaysia

Nor Aziah Abd Kadir, Nur Fakhzan Marwan, Adibah Hussin, Rosmah Nizam and Fazreena Mansor

International Journal of Human Resource Studies, 2022, vol. 12, issue 2, 6589

Abstract: Environmental sustainability is one of the most important agendas for a country to focus on, making societies and communities balanced and defensible. Healthy and pleasant surroundings create better production and economic growth. Many researchers have found that climate change is one of the most significant contributors to environmental destruction produced by humanity. Climate change affects the overall health of a nation. People may suffer skin irritation due to air pollution, diarrhea due to water pollution, and other symptoms. This empirical study uses an ARDL approach to explore the possibility of estimating the short and long-term impacts of climate change, socio-economic factors, and technology on health expenditure in Malaysia. The research found that GDP, birth rate, and technology significantly reduce health expenditure. In contrast, climate change and inflation increased long-term health expenditure in Malaysia. The results were superior to those of the previous study, as shown by the comprehensiveness of the ecological footprint in measuring climate change. This study may increase awareness among people and industry players about reducing ecological waste. Environmental policy should be intensified, and investment in healthcare technology should be empowered to increase human capital and reduce economic costs. This will enable the government to focus on other types of expenditure for the country's development.

Date: 2022
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