Impact of The Elderly Health Expenditure on Economic Growth in Malaysia

Abstrak

Healthcare expenditure is one of the important aspects of government spending because it demonstrates a country’s dedication to its citizens’ well-being. Increasing health expenditures on the elderly might constrain the country’s financial well-being. Therefore, this study investigates the impact of elderly health expenditure on economic growth in Malaysia. The goal of this study is to explore the pattern of elderly health expenditure and how it impacts economic growth in Malaysia in the long run. This 
study used 30-year time series data; 1991-2020 extracted from the World Development Indicator and the Malaysia Ministry of Finance. This study used 
descriptive analysis, correlation and unit root test to examine the relationship between variables. This study found that there is a negative correlation between elderly healthcare expenditure and Malaysia's economic growth. This study also revealed a long-run relationship between elderly healthcare expenditure and Malaysia's economic growth. Therefore, cooperation between government agencies is important to 
develop and implement comprehensive policies to manage elderly healthcare expenditure, thereby reducing pressure on government finances.