The liberalization of financial sector development towards economic growth in Malaysia
This stu dy aims to examine the relationship between financial sector development, real effective exchange rate, trade openness (sum of import and export), foreign direct investment (FDI) and economic growth in Malaysia from 1976 to 2005. F ive types of methods...
| Main Author: | |
|---|---|
| Format: | Final Year Project Report / IMRAD |
| Language: | English |
| Published: |
Universiti Malaysia Sarawak, UNIMAS
2009
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/6484/ http://ir.unimas.my/id/eprint/6484/8/THE%20LIBERALIZATION%20OF%20FINANCIAL%20SECTOR%20DEVELOPMENT%20TOWARDS%20ECONOMIC%20GROWTH%20IN%20MALAYSIA%28OCR%29.pdf |
| _version_ | 1848835925971304448 |
|---|---|
| author | Chong, Siat Lee |
| author_facet | Chong, Siat Lee |
| author_sort | Chong, Siat Lee |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | This stu
dy aims
to examine the relationship between financial sector development,
real
effective exchange rate, trade openness (sum of import and export), foreign direct
investment (FDI) and economic growth
in Malaysia
from
1976
to
2005.
F
ive types of
methods
incl
ude
Augmented Dickey
-
Fuller (ADF)
U
nit
R
oot
T
est
,
Johansen and
Juselius
C
ointegration
T
est
,
Normalized Equation,
Granger
-
Causality Test,
and
Cumulative Sum of Recursive Residuals (CUSUM) Stability Test
are conducted in this
study
.
The results show that fin
ancial sector development and trade
openness were
greatly improving economic growth. However, the real effective exchange rate and
f
oreign direct investment (FDI)
were negatively affecting
growth of Malaysia’s
economy
.
Overall
,
the
empirical
results suppor
t that
well
-
developed financial sector
plays significant role in leading domestic economy expansion. In addition, economic
growth
was found to
Granger
-
cause financial
development
in the short run
. |
| first_indexed | 2025-11-15T06:15:37Z |
| format | Final Year Project Report / IMRAD |
| id | unimas-6484 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:15:37Z |
| publishDate | 2009 |
| publisher | Universiti Malaysia Sarawak, UNIMAS |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-64842023-02-07T09:37:39Z http://ir.unimas.my/id/eprint/6484/ The liberalization of financial sector development towards economic growth in Malaysia Chong, Siat Lee HB Economic Theory HC Economic History and Conditions This stu dy aims to examine the relationship between financial sector development, real effective exchange rate, trade openness (sum of import and export), foreign direct investment (FDI) and economic growth in Malaysia from 1976 to 2005. F ive types of methods incl ude Augmented Dickey - Fuller (ADF) U nit R oot T est , Johansen and Juselius C ointegration T est , Normalized Equation, Granger - Causality Test, and Cumulative Sum of Recursive Residuals (CUSUM) Stability Test are conducted in this study . The results show that fin ancial sector development and trade openness were greatly improving economic growth. However, the real effective exchange rate and f oreign direct investment (FDI) were negatively affecting growth of Malaysia’s economy . Overall , the empirical results suppor t that well - developed financial sector plays significant role in leading domestic economy expansion. In addition, economic growth was found to Granger - cause financial development in the short run . Universiti Malaysia Sarawak, UNIMAS 2009 Final Year Project Report / IMRAD NonPeerReviewed text en http://ir.unimas.my/id/eprint/6484/8/THE%20LIBERALIZATION%20OF%20FINANCIAL%20SECTOR%20DEVELOPMENT%20TOWARDS%20ECONOMIC%20GROWTH%20IN%20MALAYSIA%28OCR%29.pdf Chong, Siat Lee (2009) The liberalization of financial sector development towards economic growth in Malaysia. [Final Year Project Report / IMRAD] (Unpublished) |
| spellingShingle | HB Economic Theory HC Economic History and Conditions Chong, Siat Lee The liberalization of financial sector development towards economic growth in Malaysia |
| title | The liberalization of financial sector development towards economic growth in Malaysia |
| title_full | The liberalization of financial sector development towards economic growth in Malaysia |
| title_fullStr | The liberalization of financial sector development towards economic growth in Malaysia |
| title_full_unstemmed | The liberalization of financial sector development towards economic growth in Malaysia |
| title_short | The liberalization of financial sector development towards economic growth in Malaysia |
| title_sort | liberalization of financial sector development towards economic growth in malaysia |
| topic | HB Economic Theory HC Economic History and Conditions |
| url | http://ir.unimas.my/id/eprint/6484/ http://ir.unimas.my/id/eprint/6484/8/THE%20LIBERALIZATION%20OF%20FINANCIAL%20SECTOR%20DEVELOPMENT%20TOWARDS%20ECONOMIC%20GROWTH%20IN%20MALAYSIA%28OCR%29.pdf |