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CPS2258 Siti Norfadillah Md Saat et al.
4.3 Unrestricted VAR Model
After stationary test of the variables and lag selection, the Unrestricted
VAR model is employed to study short run relationship between real GDP and
number of healthcare travellers. The results show that healthcare travellers do
not influence real GDP of Malaysia. However, for healthcare travellers as
dependent variable, there is positive relationship for healthcare travellers lag
one and healthcare traveller (Table 4). One per cent increase in healthcare
traveller lag one will result in 0.68 per cent increase in healthcare. However,
healthcare travellers do not influence real GDP of Malaysia.

Table 4: Unrestricted VAR Model Result
Variables Coefficient Std. Error t-Statistic Prob.
Dependent variable
(Healthcare
Travellers)
Healthcare 0.680065 0.281419 2.416556 0.0224
Travellers lag 1
Source: Author computation
4.4 Granger Causality Test
The Granger causality test result (Table 5) indicates that healthcare
travellers Granger cause real GDP at one per cent significant level. Meanwhile,
the real GDP doesn’t Granger cause healthcare travellers.

Table 5: Granger Causality Tests Result
Null Hypothesis: Chi-sq Prob.
Healthcare Travellers does not Granger Cause GDP 15.35687 0.0015
GDP does not Granger Cause Healthcare Travellers 3.541802 0.3154
Source: Author computation
4.5 Diagnostic Test
In this Unrestricted VAR model, R-square and F-statistics are significant.
Serial correlation test is also conducted and the results show that there is no
serial correlation (prob. 0.1177). Check on residual normality which use Jarque-
Bera shows that the residual is normal (prob. 0.6235). Finally, Breush-Pagan-
Godfrey result shows that there is no residual heteroskedasticity (prob.
0.3326).

5. Conclusion
The objective of this study is to examine the relationship between real
Malaysia’s GDP and healthcare travellers that visit to Malaysia. Unrestricted
VAR model and Granger causality test technique are used in this study. The
results show that healthcare traveller’s lag one is significant to explain
healthcare travellers. This study also found there is no statistical evidence that
healthcare travellers influence real GDP of Malaysia. In terms of causality,

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