An investigation on trade openness, fiscal policy and economic growth in Malaysia: using an ARDL bounds testing approach

This study examines the impacts of trade openness and fiscal policy on economic growth in Malaysia between 1970 and 2003 using the autoregressive distributed lag (ARDL) approach and bounds test as proposed by Pesaran et al. (2001). Based on a structure consistent with the endogenous growth theory, t...

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Main Authors: Abdullah, Hussin, Mohd Mustafa, Muszafarshah, Habibullah, Muzafar Shah
Format: Article
Language:English
Published: Universiti Utara Malaysia Press 2009
Online Access:http://psasir.upm.edu.my/id/eprint/13051/
http://psasir.upm.edu.my/id/eprint/13051/1/An%20investigation%20on%20trade%20openness%2C%20fiscal%20policy%20and%20economic%20growth%20in%20Malaysia%20using%20an%20ARDL%20bounds%20testing%20approach.pdf
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author Abdullah, Hussin
Mohd Mustafa, Muszafarshah
Habibullah, Muzafar Shah
author_facet Abdullah, Hussin
Mohd Mustafa, Muszafarshah
Habibullah, Muzafar Shah
author_sort Abdullah, Hussin
building UPM Institutional Repository
collection Online Access
description This study examines the impacts of trade openness and fiscal policy on economic growth in Malaysia between 1970 and 2003 using the autoregressive distributed lag (ARDL) approach and bounds test as proposed by Pesaran et al. (2001). Based on a structure consistent with the endogenous growth theory, the ARDL results show that, overall, trade openness and fiscal policy have strong positive impacts on economic growth in Malaysia over this period. This paper also develops a system instrumental variable method to estimate the structural speed of adjustment coefficient in an error correction model.
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format Article
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institution Universiti Putra Malaysia
institution_category Local University
language English
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publishDate 2009
publisher Universiti Utara Malaysia Press
recordtype eprints
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spelling upm-130512016-01-26T01:51:02Z http://psasir.upm.edu.my/id/eprint/13051/ An investigation on trade openness, fiscal policy and economic growth in Malaysia: using an ARDL bounds testing approach Abdullah, Hussin Mohd Mustafa, Muszafarshah Habibullah, Muzafar Shah This study examines the impacts of trade openness and fiscal policy on economic growth in Malaysia between 1970 and 2003 using the autoregressive distributed lag (ARDL) approach and bounds test as proposed by Pesaran et al. (2001). Based on a structure consistent with the endogenous growth theory, the ARDL results show that, overall, trade openness and fiscal policy have strong positive impacts on economic growth in Malaysia over this period. This paper also develops a system instrumental variable method to estimate the structural speed of adjustment coefficient in an error correction model. Universiti Utara Malaysia Press 2009 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/13051/1/An%20investigation%20on%20trade%20openness%2C%20fiscal%20policy%20and%20economic%20growth%20in%20Malaysia%20using%20an%20ARDL%20bounds%20testing%20approach.pdf Abdullah, Hussin and Mohd Mustafa, Muszafarshah and Habibullah, Muzafar Shah (2009) An investigation on trade openness, fiscal policy and economic growth in Malaysia: using an ARDL bounds testing approach. International Journal of Management Studies, 16 (2). pp. 177-197. ISSN 2232-1608; ESSN: 2180-2467 http://ijms.uum.edu.my/index.php/previous-issues/147-international-journal-of-management-studies-ijms-vol-16-no-2-december-2009
spellingShingle Abdullah, Hussin
Mohd Mustafa, Muszafarshah
Habibullah, Muzafar Shah
An investigation on trade openness, fiscal policy and economic growth in Malaysia: using an ARDL bounds testing approach
title An investigation on trade openness, fiscal policy and economic growth in Malaysia: using an ARDL bounds testing approach
title_full An investigation on trade openness, fiscal policy and economic growth in Malaysia: using an ARDL bounds testing approach
title_fullStr An investigation on trade openness, fiscal policy and economic growth in Malaysia: using an ARDL bounds testing approach
title_full_unstemmed An investigation on trade openness, fiscal policy and economic growth in Malaysia: using an ARDL bounds testing approach
title_short An investigation on trade openness, fiscal policy and economic growth in Malaysia: using an ARDL bounds testing approach
title_sort investigation on trade openness, fiscal policy and economic growth in malaysia: using an ardl bounds testing approach
url http://psasir.upm.edu.my/id/eprint/13051/
http://psasir.upm.edu.my/id/eprint/13051/
http://psasir.upm.edu.my/id/eprint/13051/1/An%20investigation%20on%20trade%20openness%2C%20fiscal%20policy%20and%20economic%20growth%20in%20Malaysia%20using%20an%20ARDL%20bounds%20testing%20approach.pdf