Ageing Population's Impact on Economic Growth in Malaysia From 1981 to 2019: Evidence From an Autoregressive Distributed Lag Approach

Mohd, Siti Nur Ain; Ishak, Ayunee Anis; Selvaratnam, Doris Padmini

doi:10.3389/fpubh.2021.731554

Cited by 14 publications

(10 citation statements)

References 19 publications

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“…Overall, these findings have diverse implications for the economic growth in D-8 countries. For instance, a recent study by Mohd et al (2021) found that an increase in the ageing population in Malaysia had a significant negative impact on economic growth, however, the control variables such as labour participation impacted positively on economic growth. Besides identifying labour participation as one of the most important predictors of GDP growth in Malaysia, the researchers are recommended that the policymakers should adopt active ageing policies where the aged population are recruited into the workforce based on their experience and guidance for future generations.…”

Section: Resultsmentioning

confidence: 99%

Ageing Population and Healthcare Expenditure Impacts on Labour Force Participation Rate in Developing-8 Countries

Mariadas¹,

Shaari²,

Subramaniam³

et al. 2023

IJAREMS

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Ageing population is a global phenomenon that is mainly associated with reduced mortality rates, persistent decline in fertility rates and increased life expectancy. Of the various indicators of an ageing population, demographic changes have resulted in increasing numbers and proportions of those aged 60 years and above compared to the overall nation's population. This study investigated the impact of an ageing population and healthcare expenditure on labour force participation rate in Developing-8 (D-8) countries using panel Auto-Regressive Distributed Lag (ARDL) method and Pooled Mean Group (PMG) estimator from 2000 to 2017. The empirical findings revealed that the ageing population significantly and positively affect the labour force participation rate in D-8 countries but did not affect healthcare expenditure. Fully Modified Ordinary Least Squares and (FMOLS) and DOLS tests were employed to confirm the impact of an ageing population on labour force participation rate, whereas the latter was impeded by healthcare expenditure as reflected in its significant negative impact. These findings demonstrate the diverse impact of an ageing population and healthcare expenditure on labour force

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Section: Resultsmentioning

confidence: 99%

Ageing Population and Healthcare Expenditure Impacts on Labour Force Participation Rate in Developing-8 Countries

Mariadas¹,

Shaari²,

Subramaniam³

et al. 2023

IJAREMS

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“…According to Mohd, Ishak [ 38 ], the rise in life expectancy in Malaysia has resulted in higher public expenditures on retirement benefits, healthcare, and the Employees’ Provident Fund (EPF). Since people live longer, there are more people in the senior age group, which has repercussions for the economy and society as a whole.…”

Section: Literature Reviewmentioning

confidence: 99%

Asian ageing: The relationship between the elderly population and economic growth in the Asian context

et al. 2023

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The elderly population and economic growth have been a contentious topic among researchers. Regardless of the economic growth rate, the population and its growth have a stimulating influence on economic development. This study aims to explore the relationship between the elderly population and economic growth in 15 Asian countries, based on secondary data gathered from the WDI (World Development Indicators) from 1961 to 2021. This research contributes to filling the empirical gap, capturing the Granger causality concerning the relationship between the elderly population and economic growth in the Asian context in a single study. The empirical findings highlighted a one-way Granger causality from economic growth to the elderly population for India, Japan, Malaysia, and Singapore while vice versa for Bangladesh, China, and Pakistan. Furthermore, for Nepal, there is a two-way Granger causality, while there is no Granger causality for remaining countries. To the best of the authors’ knowledge, this study has been the first to investigate the relationship between the elderly population and economic growth for Asian nations, using a lengthy data series and a Granger causality test. The main findings will assist the governments, policymakers, and foreign investors in effective decision-making in this regard.

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“…Third, the results of this study indicate that population growth is the main contributor to the rise in mortgage debt. However, given that Malaysia is currently experiencing an aging population with a low fertility rate, its impact on the economy is likely to be significant (Mohd et al , 2021). Therefore, it is predicted that mortgage debt will decline substantially in the future, and appropriate policy interventions will be required to address this issue.…”

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

The effects of housing price on the mortgage debt in Malaysia: new evidence from FMOLS method

Khan

2023

IJHMA

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Purpose The main purpose of this study is to investigate the impact of housing price on mortgage debt accumulation while considering the structural break effects associated with the Global Financial Crisis (GFC). Design/methodology/approach To determine the existence of a long run relationship among the variables, this study used a Johansen cointegration test. The long run model was then estimated using the fully modified ordinary least square method and reported for both the model with and without a structural break associated with the GFC. Findings The findings demonstrate a moderate positive relationship between housing price and mortgage debt, with the impact of the GFC is positive but insignificant. The household’s lack of responsiveness to the GFC may be attributed to their optimistic expectations and confidence in the Malaysian housing market. Practical implications Findings of this study provide some guidance to policymakers and the banking sector in predicting household borrowing behavior during future economic crises. Originality/value The increase in housing prices and mortgage debt after the GFC has been a concern for many countries, including Malaysia. This study contributes to the literature by investigating the relationship between housing prices and mortgage debt in Malaysia and sheds light on the impact of the GFC on household borrowing behavior. The study’s contributions include providing new evidence to the underexplored topic, enhancing the robustness and reliability of the empirical results and providing insights into the importance of testing for structural breaks in time series analysis.

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Ageing Population's Impact on Economic Growth in Malaysia From 1981 to 2019: Evidence From an Autoregressive Distributed Lag Approach

Cited by 14 publications

References 19 publications

Ageing Population and Healthcare Expenditure Impacts on Labour Force Participation Rate in Developing-8 Countries

Ageing Population and Healthcare Expenditure Impacts on Labour Force Participation Rate in Developing-8 Countries

Asian ageing: The relationship between the elderly population and economic growth in the Asian context

The effects of housing price on the mortgage debt in Malaysia: new evidence from FMOLS method

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