Malaysia’s Healthcare Expenditure: ARDL Bound Test

2021 ◽  
Vol 7 (2) ◽  
pp. 267
Author(s):  
Noormahayu Binti Mohd Nasir ◽  
Zarul Azhar Nasir ◽  
Norasyikin Abdullah Fahami ◽  
Muhammad Adidinizar Zia Ahmad Kusairee ◽  
Khalijah Ramli
Keyword(s):  
Healthcare Expenditure ◽  
Negative Relationship ◽  
Income Level ◽  
Regression Result ◽  
Ageing Population ◽  
Education Expenditure ◽  
Independent Variables ◽  
Long Run ◽  
Bound Test ◽  
Ardl Bound Test

This study aims to analyse the relationships between income level, education expenditure, inflation, and ageing population towards health expenditure in Malaysia over the period of 1997 until 2017.  This study employs Autoregressive Distributed-Lag (ARDL) Bound test in determining the long-run empirical relationships between all independent variables and healthcare expenditures in Malaysia.  The findings show the existence of long run cointegration between healthcare expenditure inflation, income level, and the government’s education expenditure.  The results confirmed that all independent variables have positive long run relationships, except the ageing population that displays a negative relationship in influencing healthcare expenditure in Malaysia. The regression result of GDPP shows income elasticity value of 0.690, reflecting the necessity of healthcare expenditure. The outcome of the paper hopes to provide insights on the importance of healthcare expenditure for the development of this country, especially on its economic fronts.

scholarly journals Effects of Young and Ageing Population on Education Expenditure

2014 ◽  
Vol 2 (9) ◽  
pp. 86-105
Author(s):  
Nur Haiza Nordin ◽  
Normaz Wana Ismail ◽  
Nur Naddia Nordin
Keyword(s):  
Time Series Data ◽  
Negative Relationship ◽  
Series Data ◽  
Ageing Population ◽  
Young Population ◽  
Education Expenditure ◽  
China And India ◽  
Long Run ◽  
The Impact ◽  
Bound Test

The motivation of the study is to analyze the impact of young and ageing population on education expenditure in China and India as demographic projection forecast that the percentage of population in India are increasing overtime. The used of long time series data of China and India from 1970 to 2011 helps us to identify the long-run relationship between young and ageing population and education expenditure. The result of the bound test showed that there is a stable long-run relationship between young population and education expenditure, while ageing population is negative relationship with education expenditure. In fact, short-term and long-term result revealed that the young population influences education expenditure in China and India.

scholarly journals Investigating in the J-curve phenomenon in Tunisia- ARDL bound test approach

2020 ◽  
Vol 12 (5(J)) ◽  
pp. 23-32
Author(s):  
Elham Shubaita ◽  
Muhammad Mar’i ◽  
Mehdi Seraj
Keyword(s):  
Trade Balance ◽  
Real Exchange Rates ◽  
Distributed Model ◽  
Long Run ◽  
J Curve ◽  
Short Run ◽  
Using Data ◽  
Bound Test ◽  
The Relationship ◽  
Ardl Bound Test

This paper investigates the relationship between trade balance, real exchange rates, and incomes in Tunisia by adopting the autoregressive distributed model (ARDL) by using data over the period of 1980 to 2018. We also used the bound test cointegration between variables at a 10% significant level. Our findings show that the Tunisia economy does not match the Marshall-Lerner condition in the long run, that provides an accurate description of the particular situation for which a country currency devaluation or depreciation its currency under both fixed or floating regime is predicted to enhance the trade balance of a country, which means there is no j-curve phenomenon in the long run, which tries to differentiate between the change of short-run and long-run effects in the change of exchange rate on the trade balance. Our findings match the Marshall-Lerner condition in the short run and can confirm the existing j-curve in the case of Tunisia.

Does Financial Inclusion Promote Human Development? Evidence from India

2021 ◽  
pp. 227868212110451
Author(s):  
Neha Arora ◽  
Naresh Kumar
Keyword(s):  
Human Development ◽  
Financial Inclusion ◽  
Banking Services ◽  
Indian Economy ◽  
Long Run ◽  
Speed Up ◽  
Bound Test ◽  
Hierarchy Process ◽  
The Relationship ◽  
Ardl Bound Test

The present study investigates the relationship between Financial Inclusion Index (FII) and Human Development Index (HDI) of Indian economy. The study developed FII for the Indian economy from 1991 to 2020 by using the dimensions of banking penetration, banking availability and usage of banking services. The well-known techniques of Analytical Hierarchy Process (AHP) and Technique of Preference by Similarity to Ideal Solution (TOPSIS) is used to develop FII. The ARDL bound test confirms the existence of a long-run relationship between financial inclusion and human development. Granger non-causality confirms the existence of bidirectional causality between financial inclusion and human development. As financial inclusion acts as a key for human development, government should adopt policies to speed up the financial inclusion process in India.

The effect of social spending on reducing poverty

2017 ◽  
Vol 44 (5) ◽  
pp. 620-632
Author(s):  
Ferdi Celikay ◽  
Erdal Gumus
Keyword(s):  
Empirical Evidence ◽  
Design Methodology ◽  
Negative Relationship ◽  
Social Spending ◽  
Social Expenditure ◽  
Education Expenditure ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
The Relationship

Purpose The purpose of this paper is to provide new empirical evidence on the relationship between social expenditure and poverty in Turkey. Design/methodology/approach There are voluminous studies in the literature and many of which contain condradictory results. The authors use panel error correction models and employ Turkish statistical territorial units data (26 regions) covering the period 2004-2011 in the analysis. Findings The authors have found that in the short run, there is a negative relationship between social expenditure and poverty, as expected. In the long run, however, there exists a positive relation between them. The authors utilize expenditure on education as one component of social expenditure, and the authors obtain a negative relationship between education expenditure and poverty, both in the short run and in the long run. Social implications Poverty is an important social problem that more studies on this subject should examine various aspects and find policies to alleviate it. Originality/value Literature on poverty and social spending are growing and their results are contradictory. However, this paper clearly and significantly provides new empirical evidence on the effect of social spending on reducing poverty using Turkish data. This kind of study is hardly found for developing countries like Turkey. It contributes to the literature.

scholarly journals An analysis of the impact of non-oil exports on economic growth: Evidence from Nigeria

2020 ◽  
Vol 2 (1) ◽  
pp. 15-23
Author(s):  
Lawali Bello Zoramawa ◽  
Machief Paul Ezekiel ◽  
Salisu Umar
Keyword(s):  
Economic Growth ◽  
Global Market ◽  
Agricultural Export ◽  
Long Run ◽  
Oil Exports ◽  
Oil Export ◽  
Oil Sector ◽  
The Impact ◽  
Bound Test ◽  
Ardl Bound Test

The study assessed the contribution of the non-oil sector to the economic growth in Nigeria between the periods 1981 and 2019. The study employed the ARDL bound test for cointegration to analyze the direction among the variables under review. The results of the analysis revealed that there is a negative and statistically significant relationship between non-oil exports (NOE) and economic growth (RGDP) in Nigeria during the period under investigation in the long-run for Manufacturing (MANX), solid mineral(SOLX) except for Agricultural export (AGRX). There is also a bidirectional causal relationship between non-oil exports and economic growth in Nigeria during the same period. The study, therefore recommended that the Nigerian government and other stakeholders should make a country’s non-oil export commodities more attractive and competitive in the global market which will prompt the demand for Nigeria’s non-oil goods at the international market.  Keywords: Non-Oil exports, Economic Growth,

Impact of Exchange Rate Fluctuations on India’s Manufacturing Exports: An Empirical Investigation on Long-Run Relation

2021 ◽  
Vol 3 (1) ◽  
pp. 61-73
Author(s):  
Jyoti
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Test Procedure ◽  
Exchange Rate Volatility ◽  
Real Effective Exchange Rate ◽  
Rate System ◽  
Relative Prices ◽  
Long Run ◽  
Bound Test ◽  
Ardl Bound Test

After the collapse of the fixed exchange rate system of Bretton Woods, the fluctuations of exchange rate and its impact on macroeconomic performance and trade in countries around the world are becoming an increasing debate among researchers and policymakers. This study empirically investigates whether fluctuations in real exchange rate may affect real exports in the Indian context. The study has employed autoregressive distributed lag (ARDL) bound test procedure to analyse the long-run relationship among variables using quarterly data from 2005Q1 to 2017Q4. The results of the ARDL bound test reveal that real exports are cointegrated with relative prices, real exchange rate volatility and world real GDP. The study has found negative but insignificant impact of exchange rate volatility on exports, but world GDP as a proxy of foreign economic activity and real effective exchange rate as relative prices have positive and statistically significant impact on Indian manufacturing exports. Further, the ARDL short-run error correction model implies that while the model may temporarily deviate from its long-run equilibrium, the deviations adjust towards the equilibrium level in the long run. JEL Codes: F01, F31, F14

scholarly journals Technology-Intensive Trade, Economic Growth and CO2 Emissions: ARDL Bounds Test Approach and Causality Analysis for BRICS

2019 ◽  
pp. 53-75
Author(s):  
Dr. Farha Fatema ◽  
Dr. Mohammad Monirul Islam
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
High Tech ◽  
Causality Analysis ◽  
Causal Direction ◽  
Long Run ◽  
Short Run ◽  
Bound Test ◽  
Trade And Growth ◽  
Ardl Bound Test

This study identified long-run and short-run relationship as well as causal direction of medium and high tech (MHT) trade (proxy for tech-intensive trade), economic growth and CO2 emissions in BRICS for the period of 1992-2015 applying ARDL bound test approach and error-correction based Granger causality. The disequilibrium (non-stationary) characteristics of CO2 emissions in China during 1992-2014, along with unavailability of MHT trade data prior to 1992, constrained the analysis of short-run and long-run relationship among the variables for the country. The study found that structural change did not affect CO2 emissions in India and Russia in the long-run but it did in the short-run in India. The study did not find any long-run cointegration among the variables for South Africa. It identified long-run causality running from MHT trade and growth to CO2 emissions for India and Russia, whereas long-run causality directed from MHT trade and CO2 emissions to growth was found in Brazil and India, and causality running from CO2 emissions and growth to MHT trade only held for India.

scholarly journals The Effects of FDI on Greek Economy: An Empirical Analysis

2019 ◽  
Vol 2 (2) ◽  
pp. p39
Author(s):  
Pavlos Stamatiou ◽  
Nikolaos Dritsakis
Keyword(s):  
Economic Development ◽  
Annual Data ◽  
Foreign Direct Investments ◽  
Impulse Response Functions ◽  
Long Run ◽  
Greek Economy ◽  
New Policies ◽  
Bound Test ◽  
Study Offer ◽  
Ardl Bound Test

This paper investigates the effect of Foreign Direct Investment (FDI) on economic growth in Greece, within a framework that also accounts unemployment rate, using annual data covering the period 1970 to 2017. Several econometric models are applied including the ARDL bound test approach for cointegration as well as ECM-ARDL model for causality. The results of the study confirm the existence of a long run relationship among the examined variables. The Granger causality results indicated a strong unidirectional causality between economic development and foreign direct investments with direction from economic development to foreign direct investments. Finally, the variance decomposition method and the impulse response functions are used to test the strength of causality between the variables. The results of the study offer new perspectives and insight for new policies for sustainable economic development, increasing investments and reducing unemployment.

scholarly journals Investigating the Nexus between Productivity and Export Performance of Pakistan

2018 ◽  
Vol III (II) ◽  
pp. 94-104
Author(s):  
Asma Saeed ◽  
Zahoor Ul Haq ◽  
Javed Iqbal
Keyword(s):  
Positive Impact ◽  
Export Performance ◽  
Secondary Data ◽  
Production Costs ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Manufacturing Sectors ◽  
Bound Test ◽  
Ardl Bound Test

An increase in productivity has been associated with better export performance by increasing the efficiency of the factors of production. Further, productivity leads to a reduction in production costs and an increase in comparative advantage in the international market. In this study, the Autoregressive distributed lag (ARDL) bound test is used to investigate the nexus between productivity and export performance of agricultural and manufacturing sectors of Pakistan. The study uses secondary data from 1990 to 2016 to estimate the total factor productivity (TFP) and then uses it as a proxy of productivity. Our results show that TFP and gross domestic product (GDP) have a significant and positive impact on the export performance of Pakistan. Foreign direct investment (FDI), real exchange rate and cost to export are found to be negatively related to Pakistans export performance. In the long run, both the sectors (agricultural and manufacturing) need improvement in productivity in order to be competitive in intentional markets.

Remittances and Real Effective Exchange Rate

2018 ◽  
Vol 19 (1) ◽  
pp. 124-136 ◽  
Author(s):  
Ujjal Protim Dutta ◽  
Partha Pratim Sengupta
Keyword(s):  
Exchange Rate ◽  
Real Effective Exchange Rate ◽  
Annual Data ◽  
Long Run ◽  
Effective Exchange ◽  
Short Run ◽  
Effective Exchange Rate ◽  
The Impact ◽  
Bound Test ◽  
Ardl Bound Test

Remittances in India have been growing rapidly since 1991. Most of the studies find that remittance has had a significant impact on real effective exchange rate (REER). It is imperative to evaluate the impact of a transfer such as remittance and aid on country’s competitiveness. This article is an attempt to investigate the impact of workers’ remittances and some selected macro-variables on REER of India using annual data from 1980–2015. The study conducted autoregressive distributive lag (ARDL) bound test co-integration approach to explore this long-run relationship. The ARDL bound test approach confirms significant long-run relationships among the selected variables at 1 per cent level of significance. In addition to this, the ARDL short-run error correction model implies that while REER may temporarily deviate from its long-run equilibrium, the deviations adjust towards the equilibrium level in the long run. JEL: F31, F35, F41

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