Fiscal Sustainability: An Empirical Investigation in Sarawak

This paper examines the fiscal sustainability condition for Sarawak during 1971 to 2004. We also split the sample period into the pre-crisis (1971-1996) to investigate the disparities between the two empirical samples. Empirical validation from the time series analysis finds that government revenue,...

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Main Authors: Evan, Lau, Magdalene Hua-Ling, Tiong, Jeffrey, Ling
Format: Article
Language:English
Published: Universiti Putra Malaysia 2009
Subjects:
Online Access:http://ir.unimas.my/id/eprint/7291/
http://ir.unimas.my/id/eprint/7291/1/Fiscal%20Sustainability%20An%20Empirical%20Investigation%20in%20Sarawak%20%2810%25%29.pdf
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author Evan, Lau
Magdalene Hua-Ling, Tiong
Jeffrey, Ling
author_facet Evan, Lau
Magdalene Hua-Ling, Tiong
Jeffrey, Ling
author_sort Evan, Lau
building UNIMAS Institutional Repository
collection Online Access
description This paper examines the fiscal sustainability condition for Sarawak during 1971 to 2004. We also split the sample period into the pre-crisis (1971-1996) to investigate the disparities between the two empirical samples. Empirical validation from the time series analysis finds that government revenue, government expenditure and Gross domestic Product (GDP) are cointegrated, which provides some support for the position that Sarawak’s budget deficit is sustainable in the long run in both sampling periods. The results also found support for coefficient of expenditure being unity in both periods. This finding suggests that reducing the size of government spending may improve fiscal budget deficits without having to undergo changes in the overall strategy.
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spelling unimas-72912015-04-28T00:40:15Z http://ir.unimas.my/id/eprint/7291/ Fiscal Sustainability: An Empirical Investigation in Sarawak Evan, Lau Magdalene Hua-Ling, Tiong Jeffrey, Ling HC Economic History and Conditions This paper examines the fiscal sustainability condition for Sarawak during 1971 to 2004. We also split the sample period into the pre-crisis (1971-1996) to investigate the disparities between the two empirical samples. Empirical validation from the time series analysis finds that government revenue, government expenditure and Gross domestic Product (GDP) are cointegrated, which provides some support for the position that Sarawak’s budget deficit is sustainable in the long run in both sampling periods. The results also found support for coefficient of expenditure being unity in both periods. This finding suggests that reducing the size of government spending may improve fiscal budget deficits without having to undergo changes in the overall strategy. Universiti Putra Malaysia 2009 Article PeerReviewed text en http://ir.unimas.my/id/eprint/7291/1/Fiscal%20Sustainability%20An%20Empirical%20Investigation%20in%20Sarawak%20%2810%25%29.pdf Evan, Lau and Magdalene Hua-Ling, Tiong and Jeffrey, Ling (2009) Fiscal Sustainability: An Empirical Investigation in Sarawak. International Journal of Economics and Management, 3 (1). pp. 62-72. ISSN 1823 - 836X http://econ.upm.edu.my/ijem/vol3no1/bab05.pdf
spellingShingle HC Economic History and Conditions
Evan, Lau
Magdalene Hua-Ling, Tiong
Jeffrey, Ling
Fiscal Sustainability: An Empirical Investigation in Sarawak
title Fiscal Sustainability: An Empirical Investigation in Sarawak
title_full Fiscal Sustainability: An Empirical Investigation in Sarawak
title_fullStr Fiscal Sustainability: An Empirical Investigation in Sarawak
title_full_unstemmed Fiscal Sustainability: An Empirical Investigation in Sarawak
title_short Fiscal Sustainability: An Empirical Investigation in Sarawak
title_sort fiscal sustainability: an empirical investigation in sarawak
topic HC Economic History and Conditions
url http://ir.unimas.my/id/eprint/7291/
http://ir.unimas.my/id/eprint/7291/
http://ir.unimas.my/id/eprint/7291/1/Fiscal%20Sustainability%20An%20Empirical%20Investigation%20in%20Sarawak%20%2810%25%29.pdf