Testing nonlinear convergence in Malaysia

The purpose of the present paper is to examine income convergence in Malaysia by applying the nonlinear unit root test presented by Kapetanios et al. (KSS 2003) and extended by Chong et al. (CHLL 2008) to permit the test of long-run convergence and catching-up hypotheses. The KSS-CHLL nonlinear un...

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Main Authors: Muzafar Shah Habibullah, A.M., Dayang-Affizah, Venus, Khim-Senliew, Kian, Ping Lim
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2013
Online Access:http://journalarticle.ukm.my/8098/
http://journalarticle.ukm.my/8098/1/5581-13429-1-SM.pdf
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author Muzafar Shah Habibullah,
A.M., Dayang-Affizah
Venus, Khim-Senliew
Kian, Ping Lim
author_facet Muzafar Shah Habibullah,
A.M., Dayang-Affizah
Venus, Khim-Senliew
Kian, Ping Lim
author_sort Muzafar Shah Habibullah,
building UKM Institutional Repository
collection Online Access
description The purpose of the present paper is to examine income convergence in Malaysia by applying the nonlinear unit root test presented by Kapetanios et al. (KSS 2003) and extended by Chong et al. (CHLL 2008) to permit the test of long-run convergence and catching-up hypotheses. The KSS-CHLL nonlinear unit root is applied to the test of nonlinear convergence between thirteen states with respect to Wilayah Persekutuan, the richest state of Malaysia, for the period of 1965 to 2003. Generally, the results suggest that out of the thirteen states, Kedah, Negeri Sembilan, Perak, Perlis and Selangor support the long-run convergence hypothesis; while Johor, Kelantan, Melaka, Pahang and Penang suggest catching-up. Lastly, Sabah, Sarawak and Terengganu indicate income divergence from Wilayah Persekutuan.
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institution Universiti Kebangasaan Malaysia
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spelling oai:generic.eprints.org:80982016-12-14T06:46:12Z http://journalarticle.ukm.my/8098/ Testing nonlinear convergence in Malaysia Muzafar Shah Habibullah, A.M., Dayang-Affizah Venus, Khim-Senliew Kian, Ping Lim The purpose of the present paper is to examine income convergence in Malaysia by applying the nonlinear unit root test presented by Kapetanios et al. (KSS 2003) and extended by Chong et al. (CHLL 2008) to permit the test of long-run convergence and catching-up hypotheses. The KSS-CHLL nonlinear unit root is applied to the test of nonlinear convergence between thirteen states with respect to Wilayah Persekutuan, the richest state of Malaysia, for the period of 1965 to 2003. Generally, the results suggest that out of the thirteen states, Kedah, Negeri Sembilan, Perak, Perlis and Selangor support the long-run convergence hypothesis; while Johor, Kelantan, Melaka, Pahang and Penang suggest catching-up. Lastly, Sabah, Sarawak and Terengganu indicate income divergence from Wilayah Persekutuan. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/8098/1/5581-13429-1-SM.pdf Muzafar Shah Habibullah, and A.M., Dayang-Affizah and Venus, Khim-Senliew and Kian, Ping Lim (2013) Testing nonlinear convergence in Malaysia. Jurnal Ekonomi Malaysia, 47 (1). pp. 155-162. ISSN 0127-1962 http://ejournal.ukm.my/jem/index
spellingShingle Muzafar Shah Habibullah,
A.M., Dayang-Affizah
Venus, Khim-Senliew
Kian, Ping Lim
Testing nonlinear convergence in Malaysia
title Testing nonlinear convergence in Malaysia
title_full Testing nonlinear convergence in Malaysia
title_fullStr Testing nonlinear convergence in Malaysia
title_full_unstemmed Testing nonlinear convergence in Malaysia
title_short Testing nonlinear convergence in Malaysia
title_sort testing nonlinear convergence in malaysia
url http://journalarticle.ukm.my/8098/
http://journalarticle.ukm.my/8098/
http://journalarticle.ukm.my/8098/1/5581-13429-1-SM.pdf