Panel Regression Model Of Non-Positive Economy

Abstract

Economic growth is one target of the governments. This target can be met if the governments can manage their economy by coordinatingall related attributes efficiently. That is by coordinating the positive inducing attributes, e.g., human capital, employment, and technology into an economy, the government will increase the likelihood of meeting the target of economic growth and development. On the contrary, if such an economy is coordinated by the negative inducing one the result may be reversed. Although the impacts of positive inducing attributes on economic growth are of interest, the impacts of the, possibly, negative inducing attributes on growth are valuable for investigation. Thus this work is designed to tackle this area. In this work, 3 expected negative inducing variables, namely age dependency, death rate, and overweight prevalence were studied to identify the direction of their impacts on economic growth. To articulate such impacts, the data of 10 ASEAN countries obtained from the World Bank database which covers the period between 1996 and 2018 were utilized. The impacts of the 3 expected negative inducing variables on economic growth were identified by a panel regression technique. Based on the cointegration test, it showed that all these 3 variables had negative impacts on economic growth. Therefore this work suggests that the government should try to reduce the age dependency, death rate, and overweight prevalence maybe by providing opportunities for the elderly to remain in the workforce longer, increasing social security to reducing the causes of death, and passing health-related knowledge and embedding new behaviour that leads citizen to control their weight, respectively.