2019_The Influence of Taxation, Economic Growth and Financial Stability on Consumers' Burden in Malaysia
| Format: | General Document |
|---|
| _version_ | 1860798140817342464 |
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| building | INTELEK Repository |
| collection | Online Access |
| collectionurl | https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 |
| copyright | Copyright©PWB2025 |
| country | Malaysia |
| date | 2019-10-10 |
| format | General Document |
| id | 16136 |
| institution | UniSZA |
| originalfilename | THE INFLUENCE OF TAXATION, ECONOMIC GROWTH AND FINANCIAL STABILITY ON CONSUMERS' BURDEN IN MALAYSIA (PHD_2019).pdf |
| person | Siti Nurhazwani Kamarudin |
| recordtype | oai_dc |
| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=16136 |
| sourcemedia | Server storage Scanned document |
| spelling | 16136 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=16136 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Applied Social Sciences English application/pdf 1.5 307 Server storage Scanned document UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 2.3.4; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) Economic Growth Consumer behavior Copyright©PWB2025 Economic development 2019-10-10 Financial stability THE INFLUENCE OF TAXATION, ECONOMIC GROWTH AND FINANCIAL STABILITY ON CONSUMERS' BURDEN IN MALAYSIA (PHD_2019).pdf Siti Nurhazwani Kamarudin 2019_The Influence of Taxation, Economic Growth and Financial Stability on Consumers' Burden in Malaysia Consumers' burden and the rising cost of living have become popular concerns among Malaysians in the past few years. The increase in the general price level of goods and services, among other factors, has exerted more pressure on consumers. In addition, the tax reform, specifically the GST introduced in April 2015, is expected to worsen consumers' burden given the current economic progress and financial stability conditions. This concern has become the motivation for this study, which intends to explore the influence of taxation, economic growth, and financial stability on consumers' burden in Malaysia. The investigation of such relationships is crucial in light of the current increasing cost of living experienced by Malaysian consumers. It also provides insights on whether the unpopular implementation of GST has led to higher prices, both in the short and long term. The study uses secondary data collected from Thomson Reuters DataStream (2018), spanning the period of 1996-2016 on a quarterly basis. Four models were established: taxation, economic growth, financial stability, and the complete interface, to test four hypotheses. These hypotheses posit that taxation, economic growth, financial stability, and the combined effect of these variables have short- and long-run relationships with consumers' burden in Malaysia. The variables under study are taxation, economic growth, financial stability, and consumers' burden. The analysis was conducted using the Autoregressive Distributed Lag Error Correction Model (ARDL-ECM) estimation and a combined cointegration test to verify the cointegration effects on the variables. The Toda and Yamamoto Granger causality analysis was also employed to identify the direction of causality among the variables. The results of this study provide evidence of a relationship between taxation, economic growth, financial stability, and consumers' burden, both individually and collectively in the long run. The ARDL bounds test results are significant at the one-percent level. The taxation factor alone affects consumers' burden in the long run via its direct taxation proxy. However, the significant influence changes to the indirect taxation proxy when analyzed jointly with economic growth and financial stability. Furthermore, the study failed to establish a short-run association between taxation and consumers' burden in the individual model. Notwithstanding, taxation (via the indirect taxation proxy) and economic growth jointly influence consumers' burden in the short term. The results highlight that, with the current economic and financial stability conditions in Malaysia, changes in indirect taxation policy seem to impose more burden on consumers, both in the short and long run. The long- and short-run elasticities in each model were supported by the negative and significant value of the error correction term (ECT). Moreover, the causality test indicates that only economic growth unidirectionally Granger-caused consumers' burden in the individual model, while economic growth and financial stability jointly Granger-caused consumers' burden in the complete model. The study recommends that the government be more careful and sensitive in formulating future tax reforms or introducing new policies to ensure consumers are not negatively affected. Consumers, too, need to take proactive measures to enhance their purchasing power by improving their knowledge, skills, and experience to expand their income so they can cope with inflation resulting from continuous economic growth and financial stability. Dissertations, Academic Influence Of Taxation Consumer's Burden Financial Stability Thesis |
| spellingShingle | 2019_The Influence of Taxation, Economic Growth and Financial Stability on Consumers' Burden in Malaysia |
| state | Terengganu |
| subject | Consumer behavior Economic development Financial stability Dissertations, Academic |
| summary | Consumers' burden and the rising cost of living have become popular concerns among Malaysians in the past few years. The increase in the general price level of goods and services, among other factors, has exerted more pressure on consumers. In addition, the tax reform, specifically the GST introduced in April 2015, is expected to worsen consumers' burden given the current economic progress and financial stability conditions. This concern has become the motivation for this study, which intends to explore the influence of taxation, economic growth, and financial stability on consumers' burden in Malaysia. The investigation of such relationships is crucial in light of the current increasing cost of living experienced by Malaysian consumers. It also provides insights on whether the unpopular implementation of GST has led to higher prices, both in the short and long term. The study uses secondary data collected from Thomson Reuters DataStream (2018), spanning the period of 1996-2016 on a quarterly basis. Four models were established: taxation, economic growth, financial stability, and the complete interface, to test four hypotheses. These hypotheses posit that taxation, economic growth, financial stability, and the combined effect of these variables have short- and long-run relationships with consumers' burden in Malaysia. The variables under study are taxation, economic growth, financial stability, and consumers' burden. The analysis was conducted using the Autoregressive Distributed Lag Error Correction Model (ARDL-ECM) estimation and a combined cointegration test to verify the cointegration effects on the variables. The Toda and Yamamoto Granger causality analysis was also employed to identify the direction of causality among the variables. The results of this study provide evidence of a relationship between taxation, economic growth, financial stability, and consumers' burden, both individually and collectively in the long run. The ARDL bounds test results are significant at the one-percent level. The taxation factor alone affects consumers' burden in the long run via its direct taxation proxy. However, the significant influence changes to the indirect taxation proxy when analyzed jointly with economic growth and financial stability. Furthermore, the study failed to establish a short-run association between taxation and consumers' burden in the individual model. Notwithstanding, taxation (via the indirect taxation proxy) and economic growth jointly influence consumers' burden in the short term. The results highlight that, with the current economic and financial stability conditions in Malaysia, changes in indirect taxation policy seem to impose more burden on consumers, both in the short and long run. The long- and short-run elasticities in each model were supported by the negative and significant value of the error correction term (ECT). Moreover, the causality test indicates that only economic growth unidirectionally Granger-caused consumers' burden in the individual model, while economic growth and financial stability jointly Granger-caused consumers' burden in the complete model. The study recommends that the government be more careful and sensitive in formulating future tax reforms or introducing new policies to ensure consumers are not negatively affected. Consumers, too, need to take proactive measures to enhance their purchasing power by improving their knowledge, skills, and experience to expand their income so they can cope with inflation resulting from continuous economic growth and financial stability. |
| title | 2019_The Influence of Taxation, Economic Growth and Financial Stability on Consumers' Burden in Malaysia |
| title_full | 2019_The Influence of Taxation, Economic Growth and Financial Stability on Consumers' Burden in Malaysia |
| title_fullStr | 2019_The Influence of Taxation, Economic Growth and Financial Stability on Consumers' Burden in Malaysia |
| title_full_unstemmed | 2019_The Influence of Taxation, Economic Growth and Financial Stability on Consumers' Burden in Malaysia |
| title_short | 2019_The Influence of Taxation, Economic Growth and Financial Stability on Consumers' Burden in Malaysia |
| title_sort | 2019_the influence of taxation, economic growth and financial stability on consumers' burden in malaysia |