Ageing Population on Health Expenditure in China

Abstract

A rise in the ageing population will lead to change in the health care spending. Health care system will be expected to accommodate care for ageing population to other population such as young population. As an increase in ageing population the health care systems will have to adapt. In China, ageing population will rise to 26 percent of the total population by 2050 as the demographic projection forecasts. Hence, the issues of the study is whether ageing population have an impact to the health expenditure. In this study using the DRL approach to test the relationship between the variables with the data from China from 1970 to 2016. From the analysis using ARDL testing, the results shows that there have a long run relationship and the results is significant between ageing population and healthcare expenditure. The control variable such as life expectancy, gross domestic product per capita and hospital beds also have a relationship with health expenditure. This findings support the hypothesis that, ageing population spend more in health expenditure on medication and consultation.