External Balance And Budget In Malaysia
This study examines external balance and budget in Malaysia. The unit root test results show that the variables examined are a mixture of stationary and non-stationary variables. The bounds testing results show that there is a long-run relationship between external balance and its determinants, i...
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| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
Asian Academy of Management (AAM)
2014
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| Subjects: | |
| Online Access: | http://eprints.usm.my/40023/1/AAMJAF_10-2-3_%2837-54%29.pdf http://eprints.usm.my/40023/ http://web.usm.my/journal/aamjaf/10-2-3-2014.html |
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| Institution: | Universiti Sains Malaysia |
| Language: | English |
| Summary: | This study examines external balance and budget in Malaysia. The unit root test results
show that the variables examined are a mixture of stationary and non-stationary
variables. The bounds testing results show that there is a long-run relationship between
external balance and its determinants, including budget, and also between budget and its
determinants, including external balance. Moreover, the results of the causality analysis
show that the current account targeting hypothesis and the Ricardian equivalence
hypothesis dominate the relationship between external balance and budget. Short-run
and long-run measures are needed to address external imbalances. A healthy external
balance is important for sustainable economic growth. |
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