Fixed investment, household consumption, and Economic growth: a structural vector error Correction model (svecm) study of Malaysia
This paper examines the dynamic linkages between economic growth, fixed investment, and household consumption in Malaysia using a structural vector error correction model (SVECM) approach. The empirical results revealed that household consumption and fixed investment are significant in influencin...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universiti Malaysia Sarawak, (UNIMAS)
2012
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/9224/ http://ir.unimas.my/id/eprint/9224/1/zulkefly.pdf |
| _version_ | 1848836514823274496 |
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| author | Zulkefly Abdul, Karim Bakri, Abdul Karim Mohd Azlan, Shah Zaidi |
| author_facet | Zulkefly Abdul, Karim Bakri, Abdul Karim Mohd Azlan, Shah Zaidi |
| author_sort | Zulkefly Abdul, Karim |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | This paper examines the dynamic linkages between economic growth, fixed investment, and
household consumption in Malaysia using a structural vector error correction model (SVECM)
approach. The empirical results revealed that household consumption and fixed investment are
significant in influencing the output growth in the short run. This finding tends to support the
alternative view of growth hypothesis, namely fixed investment-led growth, and household
consumption-led growth in the short run. In the long run, there is no significant effect of fixed
investment and household consumption on growth. However, in the long run, there is a
permanent effect of economic growth on household consumption and investment. This
empirical finding implies that a demand side policy (for example through fiscal or monetary
policy) which can affect the household consumption and investment is only effective to
stimulate the economic activity in the short run. Thus a supply side policy would be needed to
stimulate the economy in the long run. |
| first_indexed | 2025-11-15T06:24:59Z |
| format | Article |
| id | unimas-9224 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:24:59Z |
| publishDate | 2012 |
| publisher | Universiti Malaysia Sarawak, (UNIMAS) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-92242021-04-24T22:12:29Z http://ir.unimas.my/id/eprint/9224/ Fixed investment, household consumption, and Economic growth: a structural vector error Correction model (svecm) study of Malaysia Zulkefly Abdul, Karim Bakri, Abdul Karim Mohd Azlan, Shah Zaidi HB Economic Theory This paper examines the dynamic linkages between economic growth, fixed investment, and household consumption in Malaysia using a structural vector error correction model (SVECM) approach. The empirical results revealed that household consumption and fixed investment are significant in influencing the output growth in the short run. This finding tends to support the alternative view of growth hypothesis, namely fixed investment-led growth, and household consumption-led growth in the short run. In the long run, there is no significant effect of fixed investment and household consumption on growth. However, in the long run, there is a permanent effect of economic growth on household consumption and investment. This empirical finding implies that a demand side policy (for example through fiscal or monetary policy) which can affect the household consumption and investment is only effective to stimulate the economic activity in the short run. Thus a supply side policy would be needed to stimulate the economy in the long run. Universiti Malaysia Sarawak, (UNIMAS) 2012 Article NonPeerReviewed text en http://ir.unimas.my/id/eprint/9224/1/zulkefly.pdf Zulkefly Abdul, Karim and Bakri, Abdul Karim and Mohd Azlan, Shah Zaidi (2012) Fixed investment, household consumption, and Economic growth: a structural vector error Correction model (svecm) study of Malaysia. International Journal of Business and Society, 13 (1). pp. 63-76. ISSN 1511 6670 http://www.ijbs.unimas.my/most-popular/item/45-fixed-investment-household-consumption-and-economic-growth-a-structural-vector-error-correction-model-svecm-study-of-malaysia.html |
| spellingShingle | HB Economic Theory Zulkefly Abdul, Karim Bakri, Abdul Karim Mohd Azlan, Shah Zaidi Fixed investment, household consumption, and Economic growth: a structural vector error Correction model (svecm) study of Malaysia |
| title | Fixed investment, household consumption, and Economic growth: a structural vector error Correction model (svecm) study of Malaysia |
| title_full | Fixed investment, household consumption, and Economic growth: a structural vector error Correction model (svecm) study of Malaysia |
| title_fullStr | Fixed investment, household consumption, and Economic growth: a structural vector error Correction model (svecm) study of Malaysia |
| title_full_unstemmed | Fixed investment, household consumption, and Economic growth: a structural vector error Correction model (svecm) study of Malaysia |
| title_short | Fixed investment, household consumption, and Economic growth: a structural vector error Correction model (svecm) study of Malaysia |
| title_sort | fixed investment, household consumption, and economic growth: a structural vector error correction model (svecm) study of malaysia |
| topic | HB Economic Theory |
| url | http://ir.unimas.my/id/eprint/9224/ http://ir.unimas.my/id/eprint/9224/ http://ir.unimas.my/id/eprint/9224/1/zulkefly.pdf |