Reinvestigating the effect of trade openness towards government size, government expenditure and exchange rate: evidence from Malaysia / Nurul Syafika Abdul Malik and Rosaieni Saiful Arulchelvan

This paper investigates the short run and long run relationship between the effect of trade openness towards government size, government expenditure and exchange rate in Malaysia. Data for the variables were obtained from World Development Indicators (WDI) from 1988 to 2010. Based on our analyses, w...

Full description

Bibliographic Details
Main Authors: Abdul Malik, Nurul Syafika, Saiful Arulchelvan, Rosaieni
Format: Student Project
Language:English
Published: 2013
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/30492/
_version_ 1848807510235938816
author Abdul Malik, Nurul Syafika
Saiful Arulchelvan, Rosaieni
author_facet Abdul Malik, Nurul Syafika
Saiful Arulchelvan, Rosaieni
author_sort Abdul Malik, Nurul Syafika
building UiTM Institutional Repository
collection Online Access
description This paper investigates the short run and long run relationship between the effect of trade openness towards government size, government expenditure and exchange rate in Malaysia. Data for the variables were obtained from World Development Indicators (WDI) from 1988 to 2010. Based on our analyses, we had come out we two model that is trade openness(TO) = - government size(GS)+ exchange rate(ER) and the other model is trade openness(TO) = government expenditure(GDP)=exchange rate(ER).However the study discovers that second model have long run relationship instead of first model. Other than that, we identify that government expenditure is variable that cause trade openness and exchange rate. A few policies implication can be recommended such as government may increase trading activity such as import and export activity. Beside that the government right now needs to implement the economic transforming program more effectively. We also recommend that Malaysia should involve in more trade agreement beside FTA and WTO. The trade agreement that Malaysia can involve is maybe European Union that promise more opportunity to do the trade. In order to make sure this program success Malaysia government have to get cooperation from the private sector and not rely on the policy that implement by the government only.
first_indexed 2025-11-14T22:43:58Z
format Student Project
id uitm-30492
institution Universiti Teknologi MARA
institution_category Local University
language English
last_indexed 2025-11-14T22:43:58Z
publishDate 2013
recordtype eprints
repository_type Digital Repository
spelling uitm-304922020-05-18T03:19:55Z https://ir.uitm.edu.my/id/eprint/30492/ Reinvestigating the effect of trade openness towards government size, government expenditure and exchange rate: evidence from Malaysia / Nurul Syafika Abdul Malik and Rosaieni Saiful Arulchelvan Abdul Malik, Nurul Syafika Saiful Arulchelvan, Rosaieni Consumption. Demand (Economic theory) Economic development. Development economics. Economic growth This paper investigates the short run and long run relationship between the effect of trade openness towards government size, government expenditure and exchange rate in Malaysia. Data for the variables were obtained from World Development Indicators (WDI) from 1988 to 2010. Based on our analyses, we had come out we two model that is trade openness(TO) = - government size(GS)+ exchange rate(ER) and the other model is trade openness(TO) = government expenditure(GDP)=exchange rate(ER).However the study discovers that second model have long run relationship instead of first model. Other than that, we identify that government expenditure is variable that cause trade openness and exchange rate. A few policies implication can be recommended such as government may increase trading activity such as import and export activity. Beside that the government right now needs to implement the economic transforming program more effectively. We also recommend that Malaysia should involve in more trade agreement beside FTA and WTO. The trade agreement that Malaysia can involve is maybe European Union that promise more opportunity to do the trade. In order to make sure this program success Malaysia government have to get cooperation from the private sector and not rely on the policy that implement by the government only. 2013 Student Project NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/30492/1/30492.pdf Abdul Malik, Nurul Syafika and Saiful Arulchelvan, Rosaieni (2013) Reinvestigating the effect of trade openness towards government size, government expenditure and exchange rate: evidence from Malaysia / Nurul Syafika Abdul Malik and Rosaieni Saiful Arulchelvan. (2013) [Student Project] <http://terminalib.uitm.edu.my/30492.pdf> (Unpublished)
spellingShingle Consumption. Demand (Economic theory)
Economic development. Development economics. Economic growth
Abdul Malik, Nurul Syafika
Saiful Arulchelvan, Rosaieni
Reinvestigating the effect of trade openness towards government size, government expenditure and exchange rate: evidence from Malaysia / Nurul Syafika Abdul Malik and Rosaieni Saiful Arulchelvan
title Reinvestigating the effect of trade openness towards government size, government expenditure and exchange rate: evidence from Malaysia / Nurul Syafika Abdul Malik and Rosaieni Saiful Arulchelvan
title_full Reinvestigating the effect of trade openness towards government size, government expenditure and exchange rate: evidence from Malaysia / Nurul Syafika Abdul Malik and Rosaieni Saiful Arulchelvan
title_fullStr Reinvestigating the effect of trade openness towards government size, government expenditure and exchange rate: evidence from Malaysia / Nurul Syafika Abdul Malik and Rosaieni Saiful Arulchelvan
title_full_unstemmed Reinvestigating the effect of trade openness towards government size, government expenditure and exchange rate: evidence from Malaysia / Nurul Syafika Abdul Malik and Rosaieni Saiful Arulchelvan
title_short Reinvestigating the effect of trade openness towards government size, government expenditure and exchange rate: evidence from Malaysia / Nurul Syafika Abdul Malik and Rosaieni Saiful Arulchelvan
title_sort reinvestigating the effect of trade openness towards government size, government expenditure and exchange rate: evidence from malaysia / nurul syafika abdul malik and rosaieni saiful arulchelvan
topic Consumption. Demand (Economic theory)
Economic development. Development economics. Economic growth
url https://ir.uitm.edu.my/id/eprint/30492/