Bounds Estimation for Trade Openness and Government Expenditure Nexus of ASEAN-4 Countries

Southeast Asia countries are encountering several challenges as they are moving towards the globalization and trade liberalization era. Due to that, government intervention is essential in ensuring that the economy is resilience against the severe implications of trade openness. Therefore, this stud...

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Main Authors: Kueh, Jerome Swee Hui, Puah, Chin-Hong, Wong, Chiew-Meu
Format: Article
Language:English
Published: Universiti Malaysia Sarawak 2014
Subjects:
Online Access:http://ir.unimas.my/id/eprint/2325/
http://ir.unimas.my/id/eprint/2325/1/Jerome.pdf
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author Kueh, Jerome Swee Hui
Puah, Chin-Hong
Wong, Chiew-Meu
author_facet Kueh, Jerome Swee Hui
Puah, Chin-Hong
Wong, Chiew-Meu
author_sort Kueh, Jerome Swee Hui
building UNIMAS Institutional Repository
collection Online Access
description Southeast Asia countries are encountering several challenges as they are moving towards the globalization and trade liberalization era. Due to that, government intervention is essential in ensuring that the economy is resilience against the severe implications of trade openness. Therefore, this study aims to examine the relationship between trade openness and government expenditure of ASEAN-4 countries using the Autoregressive Distributed Lag [ARDL] bounds testing approach that covers a sample period of annually data from 1974-2006. Empirical results indicate that there is an existence of a significant positive long-run linkage between trade openness and government expenditure of all the ASEAN-4 countries under study. This means that government intervention in an open economy is crucial as to cushion the risks associated with trade liberalization.
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spelling unimas-23252022-01-26T01:47:04Z http://ir.unimas.my/id/eprint/2325/ Bounds Estimation for Trade Openness and Government Expenditure Nexus of ASEAN-4 Countries Kueh, Jerome Swee Hui Puah, Chin-Hong Wong, Chiew-Meu HF Commerce Southeast Asia countries are encountering several challenges as they are moving towards the globalization and trade liberalization era. Due to that, government intervention is essential in ensuring that the economy is resilience against the severe implications of trade openness. Therefore, this study aims to examine the relationship between trade openness and government expenditure of ASEAN-4 countries using the Autoregressive Distributed Lag [ARDL] bounds testing approach that covers a sample period of annually data from 1974-2006. Empirical results indicate that there is an existence of a significant positive long-run linkage between trade openness and government expenditure of all the ASEAN-4 countries under study. This means that government intervention in an open economy is crucial as to cushion the risks associated with trade liberalization. Universiti Malaysia Sarawak 2014 Article NonPeerReviewed text en http://ir.unimas.my/id/eprint/2325/1/Jerome.pdf Kueh, Jerome Swee Hui and Puah, Chin-Hong and Wong, Chiew-Meu (2014) Bounds Estimation for Trade Openness and Government Expenditure Nexus of ASEAN-4 Countries.
spellingShingle HF Commerce
Kueh, Jerome Swee Hui
Puah, Chin-Hong
Wong, Chiew-Meu
Bounds Estimation for Trade Openness and Government Expenditure Nexus of ASEAN-4 Countries
title Bounds Estimation for Trade Openness and Government Expenditure Nexus of ASEAN-4 Countries
title_full Bounds Estimation for Trade Openness and Government Expenditure Nexus of ASEAN-4 Countries
title_fullStr Bounds Estimation for Trade Openness and Government Expenditure Nexus of ASEAN-4 Countries
title_full_unstemmed Bounds Estimation for Trade Openness and Government Expenditure Nexus of ASEAN-4 Countries
title_short Bounds Estimation for Trade Openness and Government Expenditure Nexus of ASEAN-4 Countries
title_sort bounds estimation for trade openness and government expenditure nexus of asean-4 countries
topic HF Commerce
url http://ir.unimas.my/id/eprint/2325/
http://ir.unimas.my/id/eprint/2325/1/Jerome.pdf