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Effects of Aging and Health Expenditure on Malaysia Economic Growth
Amirul bin Hasan
Supervisor: Madam Roshanim binti Koris
Bachelor of Economics (Natural Resources)
School of Social and Economic Development
The National Senior Citizen Policy (DWEN) has classified individuals aged 60 and above
as seniors. This old population is at risk to a variety of illnesses that affect individual
health and national health. The purpose of this study is to analyze the effectiveness
of the nation's health and expenditure on the growth of the Malaysian economy. This
study is used annual time series data from 1985 to 2014 with three variables:
economic growth represents dependent variables; old populations and health
expenditure represent independent variables. To investigate the relationship between
these variables, the Auto Regression Auto Distribution Model (ARDL) is used consisting
of co-integration tests and other statistical tests such as Root Unit tests, Cusum and
Cusum Square tests. The expected results of the study are the old population and
health expenditure has a long-term relationship with economic growth. The Cusum
and Cusum Square tests are expected to show a stable model. Therefore, aging and
health expenditure are expected to affect economic growth in the coming years.
Keywords: aging, health spending, economic growth, and ARDL model
1439 | UMT UNDERGRADUATE RESEARCH DAY 2018