Assessment of Budget Sustainability in Sarawak
This study reexamines the sustainability of budget stance of Sarawak state, 1970-2008. Using the intertemporal borrowing constraint as a framework, the study tests the long-run relationship between government revenue and expenditure. Empirical results demonstrate a long-run equilibrium relationsh...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Asian Economic and Social Society
2012
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/7315/ http://ir.unimas.my/id/eprint/7315/1/ASSESSMENT%20OF%20BUDGET%20SUSTAINABILITY%20IN%20SARAWAK.pdf |
| _version_ | 1848836102747586560 |
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| author | Lau, Evan Puah, Chin-Hong Teo, Hui-Fern |
| author_facet | Lau, Evan Puah, Chin-Hong Teo, Hui-Fern |
| author_sort | Lau, Evan |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | This study reexamines the sustainability of budget stance of Sarawak state, 1970-2008. Using the
intertemporal borrowing constraint as a framework, the study tests the long-run relationship
between government revenue and expenditure. Empirical results demonstrate a long-run
equilibrium relationship among the variables. The cointegration test result suggests that Sarawak state’s fiscal stance satisfies the weak sustainability condition. In addition, the Granger causality test result reveals a bi-directional relationship between government revenue and expenditure. This means that fiscal authorities made simultaneous decisions on expenditure and revenue. Government revenue and expenditure will mutually reinforce each other. |
| first_indexed | 2025-11-15T06:18:26Z |
| format | Article |
| id | unimas-7315 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:18:26Z |
| publishDate | 2012 |
| publisher | Asian Economic and Social Society |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-73152016-04-14T07:01:23Z http://ir.unimas.my/id/eprint/7315/ Assessment of Budget Sustainability in Sarawak Lau, Evan Puah, Chin-Hong Teo, Hui-Fern HC Economic History and Conditions This study reexamines the sustainability of budget stance of Sarawak state, 1970-2008. Using the intertemporal borrowing constraint as a framework, the study tests the long-run relationship between government revenue and expenditure. Empirical results demonstrate a long-run equilibrium relationship among the variables. The cointegration test result suggests that Sarawak state’s fiscal stance satisfies the weak sustainability condition. In addition, the Granger causality test result reveals a bi-directional relationship between government revenue and expenditure. This means that fiscal authorities made simultaneous decisions on expenditure and revenue. Government revenue and expenditure will mutually reinforce each other. Asian Economic and Social Society 2012 Article PeerReviewed text en http://ir.unimas.my/id/eprint/7315/1/ASSESSMENT%20OF%20BUDGET%20SUSTAINABILITY%20IN%20SARAWAK.pdf Lau, Evan and Puah, Chin-Hong and Teo, Hui-Fern (2012) Assessment of Budget Sustainability in Sarawak. Asian Economic and Financial Review, 2 (8). pp. 952-965. ISSN 2222-6737 (online). 2305-2147 (print) http://www.pakinsight.com/pdf-files/2(8)%20952-965.pdf |
| spellingShingle | HC Economic History and Conditions Lau, Evan Puah, Chin-Hong Teo, Hui-Fern Assessment of Budget Sustainability in Sarawak |
| title | Assessment of Budget Sustainability in Sarawak |
| title_full | Assessment of Budget Sustainability in Sarawak |
| title_fullStr | Assessment of Budget Sustainability in Sarawak |
| title_full_unstemmed | Assessment of Budget Sustainability in Sarawak |
| title_short | Assessment of Budget Sustainability in Sarawak |
| title_sort | assessment of budget sustainability in sarawak |
| topic | HC Economic History and Conditions |
| url | http://ir.unimas.my/id/eprint/7315/ http://ir.unimas.my/id/eprint/7315/ http://ir.unimas.my/id/eprint/7315/1/ASSESSMENT%20OF%20BUDGET%20SUSTAINABILITY%20IN%20SARAWAK.pdf |