The optimal size of government expenditure in Malaysia

This study aims to examine the optimal level of government expenditure in Malaysia. The analysis consists of annual data for Malaysia ranging from 1975 to 2013. Variables used in this study are gross domestic product, government expenditure and openness index. Results from the unit root tests have i...

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Main Author: Leslie Balan, anak Lendik
Format: Final Year Project Report / IMRAD
Language:English
Published: Universiti Malaysia Sarawak, (UNIMAS) 2015
Subjects:
Online Access:http://ir.unimas.my/id/eprint/12335/
http://ir.unimas.my/id/eprint/12335/1/Leslie%20Balan%20ft.pdf
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author Leslie Balan, anak Lendik
author_facet Leslie Balan, anak Lendik
author_sort Leslie Balan, anak Lendik
building UNIMAS Institutional Repository
collection Online Access
description This study aims to examine the optimal level of government expenditure in Malaysia. The analysis consists of annual data for Malaysia ranging from 1975 to 2013. Variables used in this study are gross domestic product, government expenditure and openness index. Results from the unit root tests have indicated that the variables are stationary at first difference. Besides that, the Johansen and Juselius cointegrating test found one long run relationship among the variables used in this study. From the Armey Curve framework, this study has suggested that the optimal level of government expenditure in Malaysia is 13.571%. However, the size of government expenditure ever since the 1997 Asian Financial Crisis exceeded the optimal level found in this study.
first_indexed 2025-11-15T06:35:31Z
format Final Year Project Report / IMRAD
id unimas-12335
institution Universiti Malaysia Sarawak
institution_category Local University
language English
last_indexed 2025-11-15T06:35:31Z
publishDate 2015
publisher Universiti Malaysia Sarawak, (UNIMAS)
recordtype eprints
repository_type Digital Repository
spelling unimas-123352024-02-21T09:13:46Z http://ir.unimas.my/id/eprint/12335/ The optimal size of government expenditure in Malaysia Leslie Balan, anak Lendik HG Finance This study aims to examine the optimal level of government expenditure in Malaysia. The analysis consists of annual data for Malaysia ranging from 1975 to 2013. Variables used in this study are gross domestic product, government expenditure and openness index. Results from the unit root tests have indicated that the variables are stationary at first difference. Besides that, the Johansen and Juselius cointegrating test found one long run relationship among the variables used in this study. From the Armey Curve framework, this study has suggested that the optimal level of government expenditure in Malaysia is 13.571%. However, the size of government expenditure ever since the 1997 Asian Financial Crisis exceeded the optimal level found in this study. Universiti Malaysia Sarawak, (UNIMAS) 2015 Final Year Project Report / IMRAD NonPeerReviewed text en http://ir.unimas.my/id/eprint/12335/1/Leslie%20Balan%20ft.pdf Leslie Balan, anak Lendik (2015) The optimal size of government expenditure in Malaysia. [Final Year Project Report / IMRAD] (Unpublished)
spellingShingle HG Finance
Leslie Balan, anak Lendik
The optimal size of government expenditure in Malaysia
title The optimal size of government expenditure in Malaysia
title_full The optimal size of government expenditure in Malaysia
title_fullStr The optimal size of government expenditure in Malaysia
title_full_unstemmed The optimal size of government expenditure in Malaysia
title_short The optimal size of government expenditure in Malaysia
title_sort optimal size of government expenditure in malaysia
topic HG Finance
url http://ir.unimas.my/id/eprint/12335/
http://ir.unimas.my/id/eprint/12335/1/Leslie%20Balan%20ft.pdf