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...

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Main Author: Chong, Siat Lee
Format: Final Year Project Report / IMRAD
Language:English
Published: Universiti Malaysia Sarawak, UNIMAS 2009
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
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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