Sustainability in government finance
This research analyzes the linkage between economic growth and government expenditure and as well as the economic growth and government debt in Malaysia by taking account government development expenditure, government operating expenditure, domestic debt and external debt. This research is conduct...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
2013
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/9083/1/Aina%20chin%20Hui%20Li%20ft.pdf |
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| Summary: | This research analyzes the linkage between economic growth and government expenditure and as well as the economic growth and government debt in Malaysia by
taking account government development expenditure, government operating
expenditure, domestic debt and external debt. This research is conducted based on the
32 observations for government expenditure and economic growth in Malaysia, which
are from the year of 1978 to 2010. As for government debt and economic growth, the
research is conducted based on the 22 observations from 1988 to 201 ~ The methods
of unit root test, Johansen's co-integration test, Vector Error Correction Modeling
(VECM) as well as the Granger causality test are used in this research to analyze the
relationship between economic growth and government expenditure and also
economic growth and government debt in Malaysia. The test of Johansen's cointegration
indicates the existence of a long run linkage between economic growth
and government expenditure and as well as the economic growth and government
debt. In addition, empirical results reveal that causality does exist from economic
growth towards governm,ent expenditure and domestic debt. Policymakers can adopt
government expenditure especially development expenditure as policy tool to enhance
economic growth. |
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