the causal relationship between health and education expenditures in malaysia
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ID: 201370
2011
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Abstract
A major macroeconomic policy in generating economic
growth is to encourage investments on human capital such as health and
education. This is because both health and education make significant
contribution to increasing productivity of the labour force which
ultimately exerts a positive effect on raising output levels. A question that
arises is whether investments on health and education have a causal
relationship and if so, what is the directional causality? The objective of
this study is to examine the causal relationship between health and
education expenditures in Malaysia. This study covered annual data from
1970 to 2007. Using Granger causality as well as Toda and Yamamoto
MWALD causality approaches, this study suggests that education
Granger-causes health expenditure in both the short run and long run.
The findings of this study implied that the Malaysian society places
preference on education expenditure rather than health. This preference
is not unexpected as generally, an educated and knowledgeable society
precedes a healthy one. Before a society has attained a relatively higher
level of education, it is less aware of the importance of health. Thus,
expenditure on education should lead expenditure on health.
| Reference Key |
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|---|---|
| Authors | ;Chor Foon TANG;Yew Wah LAI |
| Journal | 2019 ieee 6th international conference on industrial engineering and applications, iciea 2019 |
| Year | 2011 |
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