The Relationship Between Income Distribution And Mortality And Its Possible Effects Towards The Gdp Per Capita : In The Case Of Malaysia

• Main Author: Bernard Nathan, Sebastian
• Format: Final Year Project Report
• Language: English; English
• Published: Universiti Malaysia Sarawak (UNIMAS) 2014
• Subjects: HB Economic Theory
• Online Access: http://ir.unimas.my/id/eprint/24002/1/THE%20RELATIONSHIP%20BETWEEN%20INCOME%2024pgs.pdf; http://ir.unimas.my/id/eprint/24002/4/THE%20RELATIONSHIP..Ftext.pdf; http://ir.unimas.my/id/eprint/24002/

The objective of this study is to assess the relationship between income distribution and mortality, which are statistically significant to the GDP per-capita in Malaysia. This study uses the annual time series data of GDP per-capita, Gini Index and mortality from year 1968 to 2010. The methodologies that been employed in this study include the Phillips-Perron (PP) unit root test, the Johansen-Juselius Cointegration test, Vector Autoregressive (VAR) test, and the Variance Decompositions (VDC) test. The empirical results indicate that there is a unidirectional causality running from GDP per capital towards Gini Index and mortality and also there is a feedback relationship between Gini Index and mortality. In the context of out sample, the GDP per capita appears to be the most exogenous variable and mortality appears to be the most endogenous variable at the 20 year horizon period. Several policies have been suggested in this study that may be carried out by the Malaysian government to further expand the nation’s economic development that may eventually be absorbed into the economic growth of Malaysia.