The impact of import tax liberalization towards the economic growth of Malaysia
This study examined the impact of import tax liberalization towards the economic growth of Malaysia from 1980 to 2013. Since Malaysia is a developing nation and aimed to achieve the vision 2020, the government intended to exempt import taxes in manufacturing sector. The import tax liberalization use...
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| Format: | Thesis |
| Language: | English English |
| Published: |
2017
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| Subjects: | |
| Online Access: | https://eprints.ums.edu.my/id/eprint/38708/1/24%20PAGES.pdf https://eprints.ums.edu.my/id/eprint/38708/2/FULLTEXT.pdf |
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| Summary: | This study examined the impact of import tax liberalization towards the economic growth of Malaysia from 1980 to 2013. Since Malaysia is a developing nation and aimed to achieve the vision 2020, the government intended to exempt import taxes in manufacturing sector. The import tax liberalization used as main independent variable proxied by import duties and the dependant variable economic growth was proxied by Gross Domestic Product (GDP) in line with other contributing factors like human capital investment, external debt, exchange rate, government spending on trade, and government policy. The study employed empirical methods like Ordinary Least Square estimates, Unit Root Test, Johansen Co-integration test, Granger Causality Test, ARCH test and others. Therefore, the result obtained from empirical test revealed that the import tax liberalization supported the economic growth in both long run and short run. Thus, it was recommended to increase the degree of import tax liberalization in order to enhance the economic growth of Malaysia. |
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