The impact of human development on cigarettes consumption in Malaysia

This paper estimates the impact of human development indicators on cigarette consumption in Malaysia from 1980 to 2012. To determine the long run relationship among the variables, ARDL bound testing approach is applied since the tested variables are a mixed of I(0) and I(1). Results show that life e...

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Main Authors: Fallahi, Mahdi, Mohamed Nor, Norashidah, Bui, Wency Kher Thinng
Format: Article
Language:English
Published: Faculty of Economics and Management, Universiti Putra Malaysia 2015
Online Access:http://psasir.upm.edu.my/id/eprint/48680/1/Paper%207%20Norashidah%20Mahdi%20C%20Demand.pdf
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author Fallahi, Mahdi
Mohamed Nor, Norashidah
Bui, Wency Kher Thinng
author_facet Fallahi, Mahdi
Mohamed Nor, Norashidah
Bui, Wency Kher Thinng
author_sort Fallahi, Mahdi
collection UPM
description This paper estimates the impact of human development indicators on cigarette consumption in Malaysia from 1980 to 2012. To determine the long run relationship among the variables, ARDL bound testing approach is applied since the tested variables are a mixed of I(0) and I(1). Results show that life expectancy, -16.3828 is negatively related and highly significant in determining the cigarette consumption in Malaysia. Even though the other human development indicators are insignificant in this study, an increase in the level of life expectancy is indirectly due to better living standard and improved education. This study has an interesting implication for Malaysia’s policy in controlling cigarettes consumption. Higher taxation on cigarettes may not the only effective policy, but greater emphasis on factors that lead to improvement in life expectancy will likely reduce cigarette consumption in Malaysia.
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spelling upm.eprints-486802016-10-11T03:55:17Z http://psasir.upm.edu.my/id/eprint/48680/ The impact of human development on cigarettes consumption in Malaysia Fallahi, Mahdi Mohamed Nor, Norashidah Bui, Wency Kher Thinng This paper estimates the impact of human development indicators on cigarette consumption in Malaysia from 1980 to 2012. To determine the long run relationship among the variables, ARDL bound testing approach is applied since the tested variables are a mixed of I(0) and I(1). Results show that life expectancy, -16.3828 is negatively related and highly significant in determining the cigarette consumption in Malaysia. Even though the other human development indicators are insignificant in this study, an increase in the level of life expectancy is indirectly due to better living standard and improved education. This study has an interesting implication for Malaysia’s policy in controlling cigarettes consumption. Higher taxation on cigarettes may not the only effective policy, but greater emphasis on factors that lead to improvement in life expectancy will likely reduce cigarette consumption in Malaysia. Faculty of Economics and Management, Universiti Putra Malaysia 2015 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/48680/1/Paper%207%20Norashidah%20Mahdi%20C%20Demand.pdf Fallahi, Mahdi and Mohamed Nor, Norashidah and Bui, Wency Kher Thinng (2015) The impact of human development on cigarettes consumption in Malaysia. International Journal of Economics and Management, 9 (2). pp. 356-368. ISSN 1823-836X http://econ.upm.edu.my/ijem/vol9no2/Paper%207%20Norashidah%20Mahdi%20C%20Demand.pdf
spellingShingle Fallahi, Mahdi
Mohamed Nor, Norashidah
Bui, Wency Kher Thinng
The impact of human development on cigarettes consumption in Malaysia
title The impact of human development on cigarettes consumption in Malaysia
title_full The impact of human development on cigarettes consumption in Malaysia
title_fullStr The impact of human development on cigarettes consumption in Malaysia
title_full_unstemmed The impact of human development on cigarettes consumption in Malaysia
title_short The impact of human development on cigarettes consumption in Malaysia
title_sort impact of human development on cigarettes consumption in malaysia
url http://psasir.upm.edu.my/id/eprint/48680/1/Paper%207%20Norashidah%20Mahdi%20C%20Demand.pdf
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