Capital account liberalization and economic performance in Malaysia

This study examines the impact of capital account liberalization on economic growth in Malaysia from 1970 to 2004. It uses two measures of capital account openness, namely de jure (an index of liberalization) and de facto (the volume of capital flows). The empirical results based on the modified gro...

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Main Authors: Law, Siong Hook, Wan Ngah, Wan Azman Saini
Format: Article
Language:English
Published: World Scientific Publishing 2013
Online Access:http://psasir.upm.edu.my/id/eprint/28314/
http://psasir.upm.edu.my/id/eprint/28314/1/Capital%20account%20liberalization%20and%20economic%20performance%20in%20Malaysia.pdf
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author Law, Siong Hook
Wan Ngah, Wan Azman Saini
author_facet Law, Siong Hook
Wan Ngah, Wan Azman Saini
author_sort Law, Siong Hook
building UPM Institutional Repository
collection Online Access
description This study examines the impact of capital account liberalization on economic growth in Malaysia from 1970 to 2004. It uses two measures of capital account openness, namely de jure (an index of liberalization) and de facto (the volume of capital flows). The empirical results based on the modified growth model demonstrate that the de jure measure of capital account liberalization shows an adverse effect on growth in Malaysia. However, the de facto measure shows a robust positive effect on economic growth. The results also highlight that the effect of capital account liberalization on growth is contingent on a country's level of financial development and the quality of its institutions.
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spelling upm-283142015-10-01T03:57:37Z http://psasir.upm.edu.my/id/eprint/28314/ Capital account liberalization and economic performance in Malaysia Law, Siong Hook Wan Ngah, Wan Azman Saini This study examines the impact of capital account liberalization on economic growth in Malaysia from 1970 to 2004. It uses two measures of capital account openness, namely de jure (an index of liberalization) and de facto (the volume of capital flows). The empirical results based on the modified growth model demonstrate that the de jure measure of capital account liberalization shows an adverse effect on growth in Malaysia. However, the de facto measure shows a robust positive effect on economic growth. The results also highlight that the effect of capital account liberalization on growth is contingent on a country's level of financial development and the quality of its institutions. World Scientific Publishing 2013-09 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/28314/1/Capital%20account%20liberalization%20and%20economic%20performance%20in%20Malaysia.pdf Law, Siong Hook and Wan Ngah, Wan Azman Saini (2013) Capital account liberalization and economic performance in Malaysia. The Singapore Economic Review, 58 (3). art. no. 1350022. pp. 1-22. ISSN 0217-5908; ESSN: 1793-6837 http://www.worldscientific.com/doi/abs/10.1142/S0217590813500227 10.1142/S0217590813500227
spellingShingle Law, Siong Hook
Wan Ngah, Wan Azman Saini
Capital account liberalization and economic performance in Malaysia
title Capital account liberalization and economic performance in Malaysia
title_full Capital account liberalization and economic performance in Malaysia
title_fullStr Capital account liberalization and economic performance in Malaysia
title_full_unstemmed Capital account liberalization and economic performance in Malaysia
title_short Capital account liberalization and economic performance in Malaysia
title_sort capital account liberalization and economic performance in malaysia
url http://psasir.upm.edu.my/id/eprint/28314/
http://psasir.upm.edu.my/id/eprint/28314/
http://psasir.upm.edu.my/id/eprint/28314/
http://psasir.upm.edu.my/id/eprint/28314/1/Capital%20account%20liberalization%20and%20economic%20performance%20in%20Malaysia.pdf