The determinants of health expenditure in Malaysia: A time series analysis

Chor Foon Tang

MPRA Paper from University Library of Munich, Germany

Abstract: The purpose of this study is to investigate the determinants of health expenditure in Malaysia within the time series framework from 1967 to 2007. This study employed the Johansen-Juselius cointegration test to examine the cointegration relationship. The results showed that health expenditure and its determinants are cointegrated. Consistent with economic theory, the TYDL and variance decomposition analysis reveals that the key explanatory variables in Malaysia’s health expenditure model are income, health care price and the proportion of population aged more than 65 years old. Moreover, the TYDL causality indicates that health expenditure and income is bi-directional in nature, thus policies initiative to promote health expenditure should be implemented to achieve sustainable economic growth and development.

Keywords: Cointegration; Health; Income; Malaysia; TYDL (search for similar items in EconPapers)
JEL-codes: C01 C22 H51 I18 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-hea and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/24356/1/MPRA_paper_24356.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/27288/1/MPRA_paper_27288.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/27298/1/MPRA_paper_27298.pdf revised version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:24356

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().