The relationship between budget deficit and other macroeconomic variables in Malaysia / Rosfadzila Abdul Sait

It is an obvious fact that Budget Deficit has become unresolved issues in a macroeconomic paradigm. Malaysia itself experienced a deficit prior in 1970s and tend to increase recently. The objective of this paper work is to explored the relationship between budget deficits with other macroeconomic va...

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Main Author:	Abdul Sait, Rosfadzila
Format:	Thesis
Language:	English
Published:	2014
Subjects:	Macroeconomics
Online Access:	https://ir.uitm.edu.my/id/eprint/95666/1/95666.pdf
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id	my-uitm-ir.95666
record_format	uketd_dc
spelling	my-uitm-ir.956662024-05-31T03:31:56Z The relationship between budget deficit and other macroeconomic variables in Malaysia / Rosfadzila Abdul Sait 2014 Abdul Sait, Rosfadzila Macroeconomics It is an obvious fact that Budget Deficit has become unresolved issues in a macroeconomic paradigm. Malaysia itself experienced a deficit prior in 1970s and tend to increase recently. The objective of this paper work is to explored the relationship between budget deficits with other macroeconomic variables namely interest rates, private investment and gross domestic product from Malaysia's perspective. Regression is based on time series data for the period of 1970 to 2011 and have been employed Ordinary Least Square (OLS), Johansen Cointegration as well as Granger Causality test. The analysis reveals no long run relationship hold between deficit and this macroeconomics variables and indirectly support the Ricardian Equivalence hypothesis. Nevertheless, there is a positive and significant relation between budget deficit with private investment and negative relation between deficit and gross domestic product. The bi-directional causality are detected running from gross domestic product to private investment and vice versa. 2014 Thesis https://ir.uitm.edu.my/id/eprint/95666/ https://ir.uitm.edu.my/id/eprint/95666/1/95666.pdf text en public Universiti Teknologi MARA, Sabah Faculty of Business and Management
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
topic	Macroeconomics
spellingShingle	Macroeconomics Abdul Sait, Rosfadzila The relationship between budget deficit and other macroeconomic variables in Malaysia / Rosfadzila Abdul Sait
description	It is an obvious fact that Budget Deficit has become unresolved issues in a macroeconomic paradigm. Malaysia itself experienced a deficit prior in 1970s and tend to increase recently. The objective of this paper work is to explored the relationship between budget deficits with other macroeconomic variables namely interest rates, private investment and gross domestic product from Malaysia's perspective. Regression is based on time series data for the period of 1970 to 2011 and have been employed Ordinary Least Square (OLS), Johansen Cointegration as well as Granger Causality test. The analysis reveals no long run relationship hold between deficit and this macroeconomics variables and indirectly support the Ricardian Equivalence hypothesis. Nevertheless, there is a positive and significant relation between budget deficit with private investment and negative relation between deficit and gross domestic product. The bi-directional causality are detected running from gross domestic product to private investment and vice versa.
format	Thesis
author	Abdul Sait, Rosfadzila
author_facet	Abdul Sait, Rosfadzila
author_sort	Abdul Sait, Rosfadzila
title	The relationship between budget deficit and other macroeconomic variables in Malaysia / Rosfadzila Abdul Sait
title_short	The relationship between budget deficit and other macroeconomic variables in Malaysia / Rosfadzila Abdul Sait
title_full	The relationship between budget deficit and other macroeconomic variables in Malaysia / Rosfadzila Abdul Sait
title_fullStr	The relationship between budget deficit and other macroeconomic variables in Malaysia / Rosfadzila Abdul Sait
title_full_unstemmed	The relationship between budget deficit and other macroeconomic variables in Malaysia / Rosfadzila Abdul Sait
title_sort	relationship between budget deficit and other macroeconomic variables in malaysia / rosfadzila abdul sait
granting_institution	Universiti Teknologi MARA, Sabah
granting_department	Faculty of Business and Management
publishDate	2014
url	https://ir.uitm.edu.my/id/eprint/95666/1/95666.pdf
_version_	1804889967700213760

The relationship between budget deficit and other macroeconomic variables in Malaysia / Rosfadzila Abdul Sait

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