Government Intervention in the Economy-Test on Malaysia's Fiscal Conduct
Using Malaysia as a case study, this paper investigates the conduct of fiscal policy regimes during the last three decades. Empirical results show that in pre-crisis Malaysia the fiscal stance is not sustainable, while in the full sampling period (including the post-1997 crisis era) it satisfies...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Asia Pacific Journal of Economics and Business
2006
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/17416/ http://ir.unimas.my/id/eprint/17416/1/Government%20Intervention%20in%20the%20Economy%20%28abstract%29.pdf |
| _version_ | 1848838282354360320 |
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| author | Evan, Lau Shazali, Abu Mansor Puah, Chin Hong |
| author_facet | Evan, Lau Shazali, Abu Mansor Puah, Chin Hong |
| author_sort | Evan, Lau |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | Using Malaysia as a case study, this paper investigates the conduct of
fiscal policy regimes during the last three decades. Empirical results
show that in pre-crisis Malaysia the fiscal stance is not sustainable,
while in the full sampling period (including the post-1997 crisis era) it
satisfies only the necessary condition for sustainability. Long-run oneway
causation from expenditure to revenue was observed, in line with
the spend-and-tax hypothesis. The Malaysian government, therefore,
must aim to reduce the size of government spending and promote a costeffective
expenditure program with maximum benefits, to moderate
the post-crisis fiscal imbalances |
| first_indexed | 2025-11-15T06:53:05Z |
| format | Article |
| id | unimas-17416 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:53:05Z |
| publishDate | 2006 |
| publisher | Asia Pacific Journal of Economics and Business |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-174162017-08-28T06:33:38Z http://ir.unimas.my/id/eprint/17416/ Government Intervention in the Economy-Test on Malaysia's Fiscal Conduct Evan, Lau Shazali, Abu Mansor Puah, Chin Hong HB Economic Theory Using Malaysia as a case study, this paper investigates the conduct of fiscal policy regimes during the last three decades. Empirical results show that in pre-crisis Malaysia the fiscal stance is not sustainable, while in the full sampling period (including the post-1997 crisis era) it satisfies only the necessary condition for sustainability. Long-run oneway causation from expenditure to revenue was observed, in line with the spend-and-tax hypothesis. The Malaysian government, therefore, must aim to reduce the size of government spending and promote a costeffective expenditure program with maximum benefits, to moderate the post-crisis fiscal imbalances Asia Pacific Journal of Economics and Business 2006 Article PeerReviewed text en http://ir.unimas.my/id/eprint/17416/1/Government%20Intervention%20in%20the%20Economy%20%28abstract%29.pdf Evan, Lau and Shazali, Abu Mansor and Puah, Chin Hong (2006) Government Intervention in the Economy-Test on Malaysia's Fiscal Conduct. The Asia Pacific Journal of Economics & Business, 10 (2). ISSN 1326-8481 https://www.researchgate.net/publication/308076319 |
| spellingShingle | HB Economic Theory Evan, Lau Shazali, Abu Mansor Puah, Chin Hong Government Intervention in the Economy-Test on Malaysia's Fiscal Conduct |
| title | Government Intervention in the Economy-Test on Malaysia's Fiscal Conduct |
| title_full | Government Intervention in the Economy-Test on Malaysia's Fiscal Conduct |
| title_fullStr | Government Intervention in the Economy-Test on Malaysia's Fiscal Conduct |
| title_full_unstemmed | Government Intervention in the Economy-Test on Malaysia's Fiscal Conduct |
| title_short | Government Intervention in the Economy-Test on Malaysia's Fiscal Conduct |
| title_sort | government intervention in the economy-test on malaysia's fiscal conduct |
| topic | HB Economic Theory |
| url | http://ir.unimas.my/id/eprint/17416/ http://ir.unimas.my/id/eprint/17416/ http://ir.unimas.my/id/eprint/17416/1/Government%20Intervention%20in%20the%20Economy%20%28abstract%29.pdf |