Ageing Population and Economic Growth: Evidence from Malaysia

Taasim, Shairil Izwan

doi:10.9734/sajsse/2020/v7i430196

Cited by 7 publications

(5 citation statements)

References 10 publications

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“…This initiative will be reducing the negative effect of ageing and simultaneously creating a more positive effect on their economy. Other studies using ARDL by Ismail et al (15) and Taasim (27) found that the age dependency ratio, population aged 65+, and a reduction of fertility have a positive impact on economic growth. Furthermore, Futagami and Nakajima (28) found positive effects of population ageing on economic growth, such as the development of labour-saving technology and increased investments into human capital.…”

Section: Empirical Frameworkmentioning

confidence: 93%

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

Mohd

Ishak

Selvaratnam

2021

Front. Public Health

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This study investigates the impact of the ageing population on the economic growth for short- and long-run estimations in Malaysia, by using time series data from 1981 to 2019. This study adopts the autoregressive distributed lag (ARDL) method with the Bound test approach for the long-run estimation and the vector error correction model for the short-run estimation. Several econometric diagnostic tests were applied for validation and the appropriate model specification basis. The estimated result of this work indicates that the age dependency ratio proxy for the ageing population variable has a significant negative impact on economic growth in Malaysia. A 1% increase in old age dependency will decline gross domestic product's (GDP's) growth by an average of 6.6043% at the 5% level of significance. Hence, an increase in the ageing population will impede economic growth. Although controlled variables (e.g., physical capital, labour participation, and human capital) have a significant positive impact on economic growth in Malaysia, there is evidence of a long- and short-run relationship between economic growth and the ageing population variable, and also the control variable.

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Section: Empirical Frameworkmentioning

confidence: 93%

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

Mohd

Ishak

Selvaratnam

2021

Front. Public Health

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“…These efforts will help mitigate the harmful effects of ageing and generate economic benefits. Ismail, Abd Rahman [ 41 ] and Taasim [ 47 ] used ARDL in their research and discovered that the elderly population, the elderly dependence ratio, and lower fertility contribute to economic development. Population ageing benefits economic growth, according to Futagami and Nakajima [ 48 ], who cited innovations in labour-saving technologies and more expenditures in human capital as examples.…”

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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“…The quality of the growing population and the resources invested in them is also a factor considered in evaluating the relationship between population and economic growth. Bucci and Raurich (2019) and Taasim (2020) emphasize the importance of human capital development and education in an increasing population. Various literature has different results because the topic of population and economic growth will always vary in each country and the resources available in the country.…”

Section: Populationmentioning

confidence: 99%

The Relationship between Philippine Population, Remittances, Foreign Direct Investment, and Trade Openness on its Gross Domestic Product

Gonzalez¹,

Llanto²,

Manapat

2022

JEFAS

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Considering that GDP is one of the main indicators that influence the economic growth of a country, there are certain factors that affect its increase or decrease. This study was conducted to understand the relationship between the Philippines’ economic growth (Gross Domestic Product) and its economic factors namely: Trade Openness, Inflation rate, Foreign Direct Investment, and Labor Force. The researchers used a quantitative-correlational approach to determine the strength of the relationships between the variables. Moreover, the researchers concluded that the variables of Foreign Direct Investment, Trade Openness, Labor Force were significant determinants to explain economic growth, while Inflation Rate was insignificant. The Philippine government may utilize the paper to emphasize the relationship of the variables towards economic growth, specifically, the Trade openness variable, which showed a significant relationship towards economic growth yet had unsatisfactory results as an indicator for economic growth.

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Ageing Population and Economic Growth: Evidence from Malaysia

Cited by 7 publications

References 10 publications

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

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

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

The Relationship between Philippine Population, Remittances, Foreign Direct Investment, and Trade Openness on its Gross Domestic Product

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