The Use of Cointegration and Error Correction Modelling To Investigate the Influence of Diabetes and Associated Medical Services Expenditure on Economic Growth in Malaysia
AbstractThis paper reports on a frontier study undertaken to examine the influence of mortality rates due to diabetes (DBT) and medical services expenditure (EXP) on economic growth (RGDPP) in Malaysia. The results of the Johansen test for cointegration allowed the acceptance of r = 2 as our estimate of the number of cointegrating equations among the three of variables. The negative sign of the residual in the estimated Error Correction Modelling (ECM) indicated the existence of a long-run equilibrium relationship among RGDPP, EXP and DBT, while the coefficient for error term implied that the system corrected its previous period disequilibrium due to positive or negative shocks in one period at an adjustment speed of 9.23 percent annually. These findings have substantive implications on the efforts to promote and achieve satisfactory health and wellness in Malaysia, and highlight a critical need for an effective long-term national strategy to resolve diabetes related economic issues. The results provide a useful foundation for a much needed national debate to review health-care spending in relation to choosing the best methods in reducing and alleviating diabetes and other chronic diseases such as cancer and cardiovascular disease. Additional priority areas that merit further study are highlighted to help in measuring and addressing the economic, human, and social costs of preventable chronic diseases and to identify opportunities to ameliorate these important aspects within the economy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Asian Economic and Social Society in its journal Journal of Asian Scientific Research.
Volume (Year): 3 (2013)
Issue (Month): 6 (June)
Contact details of provider:
Postal: Sadeeq Block, Near Fawara Chowk, Abbasia Town, Rahim Yar Khan - 64200, Punjab, Pakistan
Web page: http://www.aessweb.com/
Malaysia; diabetes; medical services expenditure; economic growth; cointegration and error correction modeling;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-80, November.
- Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Qazi Muhammad Imran).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.