Does government investment crowd-in or crowd-out private investment in Malaysia?

Motivated by the concern of Malaysia’s government to increase private capital formation rate while the country has witnessed relatively low rate of private capital formation in the post-financial crisis area, this study aims to evaluate the long run relationship between private investment and govern...

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Main Authors: Hajian, Hoda, Mohamed, Azali
Format: Conference or Workshop Item
Language:English
Published: Faculty of Economics and Administration, University of Malaya 2015
Online Access:http://psasir.upm.edu.my/id/eprint/66997/
http://psasir.upm.edu.my/id/eprint/66997/1/PCEPAB2015-4.pdf
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author Hajian, Hoda
Mohamed, Azali
author_facet Hajian, Hoda
Mohamed, Azali
author_sort Hajian, Hoda
building UPM Institutional Repository
collection Online Access
description Motivated by the concern of Malaysia’s government to increase private capital formation rate while the country has witnessed relatively low rate of private capital formation in the post-financial crisis area, this study aims to evaluate the long run relationship between private investment and government investment that is almost debt financed. Using a trivariate vector error correction model and time-series data covering last 44 years (from 1970 to 2013) this paper finds evidence of long-run complementary effect of government investment on private investment in Malaysia.
first_indexed 2025-11-15T11:30:21Z
format Conference or Workshop Item
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institution Universiti Putra Malaysia
institution_category Local University
language English
last_indexed 2025-11-15T11:30:21Z
publishDate 2015
publisher Faculty of Economics and Administration, University of Malaya
recordtype eprints
repository_type Digital Repository
spelling upm-669972019-03-06T05:34:43Z http://psasir.upm.edu.my/id/eprint/66997/ Does government investment crowd-in or crowd-out private investment in Malaysia? Hajian, Hoda Mohamed, Azali Motivated by the concern of Malaysia’s government to increase private capital formation rate while the country has witnessed relatively low rate of private capital formation in the post-financial crisis area, this study aims to evaluate the long run relationship between private investment and government investment that is almost debt financed. Using a trivariate vector error correction model and time-series data covering last 44 years (from 1970 to 2013) this paper finds evidence of long-run complementary effect of government investment on private investment in Malaysia. Faculty of Economics and Administration, University of Malaya 2015 Conference or Workshop Item PeerReviewed text en http://psasir.upm.edu.my/id/eprint/66997/1/PCEPAB2015-4.pdf Hajian, Hoda and Mohamed, Azali (2015) Does government investment crowd-in or crowd-out private investment in Malaysia? In: Postgraduate Conference on Economics, Public Administration and Business (PCEPAB 2015), 5 Sept. 2015, Faculty of Economics and Administration, University of Malaya. (pp. 448-455).
spellingShingle Hajian, Hoda
Mohamed, Azali
Does government investment crowd-in or crowd-out private investment in Malaysia?
title Does government investment crowd-in or crowd-out private investment in Malaysia?
title_full Does government investment crowd-in or crowd-out private investment in Malaysia?
title_fullStr Does government investment crowd-in or crowd-out private investment in Malaysia?
title_full_unstemmed Does government investment crowd-in or crowd-out private investment in Malaysia?
title_short Does government investment crowd-in or crowd-out private investment in Malaysia?
title_sort does government investment crowd-in or crowd-out private investment in malaysia?
url http://psasir.upm.edu.my/id/eprint/66997/
http://psasir.upm.edu.my/id/eprint/66997/1/PCEPAB2015-4.pdf