Testing Nonlinear Convergence in Malaysia

The purpose of the present paper is to examine income convergence in Malaysia by using the nonlinear unit root test due to Kapetanios et al. (KSS, 2003) and extended by Chong et al. (CHLL, 2008) to permit the test of long-run convergence and catching-up hypotheses. We apply the KSS-CHLL nonlinear...

Full description

Bibliographic Details
Main Authors: Muzafar Shah, Habibullah, Liew, Venus Khim-Sen, A.M., Dayang-Affizzah, Lim, Kian-Ping
Format: Article
Language:English
Published: MPRA 2008
Subjects:
Online Access:http://ir.unimas.my/id/eprint/9750/
http://ir.unimas.my/id/eprint/9750/1/Testing%20Nonlinear%20Convergence%20in%20Malaysia%28abs%29.pdf
_version_ 1848836631976476672
author Muzafar Shah, Habibullah
Liew, Venus Khim-Sen
A.M., Dayang-Affizzah
Lim, Kian-Ping
author_facet Muzafar Shah, Habibullah
Liew, Venus Khim-Sen
A.M., Dayang-Affizzah
Lim, Kian-Ping
author_sort Muzafar Shah, Habibullah
building UNIMAS Institutional Repository
collection Online Access
description The purpose of the present paper is to examine income convergence in Malaysia by using the nonlinear unit root test due to Kapetanios et al. (KSS, 2003) and extended by Chong et al. (CHLL, 2008) to permit the test of long-run convergence and catching-up hypotheses. We apply the KSS-CHLL nonlinear unit root for the test of nonlinear convergence between thirteen states with respect to Wilayah Persekutuan (the riches state) of Malaysia for the period 1965 to 2003. Generally, our results suggest that out of the thirteen states, only Kedah, Negeri Sembilan, Perak, Perlis and Selangor support the long-run convergence hypothesis while Johor, Kelantan, Melaka, Pahang and Penang suggest catching-up. Lastly, Sabah, Sarawak and Terengganu indicate income divergence from Wilayah Persekutuan.
first_indexed 2025-11-15T06:26:51Z
format Article
id unimas-9750
institution Universiti Malaysia Sarawak
institution_category Local University
language English
last_indexed 2025-11-15T06:26:51Z
publishDate 2008
publisher MPRA
recordtype eprints
repository_type Digital Repository
spelling unimas-97502015-11-16T02:57:45Z http://ir.unimas.my/id/eprint/9750/ Testing Nonlinear Convergence in Malaysia Muzafar Shah, Habibullah Liew, Venus Khim-Sen A.M., Dayang-Affizzah Lim, Kian-Ping HC Economic History and Conditions The purpose of the present paper is to examine income convergence in Malaysia by using the nonlinear unit root test due to Kapetanios et al. (KSS, 2003) and extended by Chong et al. (CHLL, 2008) to permit the test of long-run convergence and catching-up hypotheses. We apply the KSS-CHLL nonlinear unit root for the test of nonlinear convergence between thirteen states with respect to Wilayah Persekutuan (the riches state) of Malaysia for the period 1965 to 2003. Generally, our results suggest that out of the thirteen states, only Kedah, Negeri Sembilan, Perak, Perlis and Selangor support the long-run convergence hypothesis while Johor, Kelantan, Melaka, Pahang and Penang suggest catching-up. Lastly, Sabah, Sarawak and Terengganu indicate income divergence from Wilayah Persekutuan. MPRA 2008 Article NonPeerReviewed text en http://ir.unimas.my/id/eprint/9750/1/Testing%20Nonlinear%20Convergence%20in%20Malaysia%28abs%29.pdf Muzafar Shah, Habibullah and Liew, Venus Khim-Sen and A.M., Dayang-Affizzah and Lim, Kian-Ping (2008) Testing Nonlinear Convergence in Malaysia. MPRA Paper. pp. 1-13. https://mpra.ub.uni-muenchen.de/12110/
spellingShingle HC Economic History and Conditions
Muzafar Shah, Habibullah
Liew, Venus Khim-Sen
A.M., Dayang-Affizzah
Lim, Kian-Ping
Testing Nonlinear Convergence in Malaysia
title Testing Nonlinear Convergence in Malaysia
title_full Testing Nonlinear Convergence in Malaysia
title_fullStr Testing Nonlinear Convergence in Malaysia
title_full_unstemmed Testing Nonlinear Convergence in Malaysia
title_short Testing Nonlinear Convergence in Malaysia
title_sort testing nonlinear convergence in malaysia
topic HC Economic History and Conditions
url http://ir.unimas.my/id/eprint/9750/
http://ir.unimas.my/id/eprint/9750/
http://ir.unimas.my/id/eprint/9750/1/Testing%20Nonlinear%20Convergence%20in%20Malaysia%28abs%29.pdf