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An Investigation on Trade Openness, Fiscal Policy and Economic Growth In Malaysia: Using an ARDL Bounds Testing Approach

Year: 2009

Type: article

Abstract: This study examines the impacts of trade openness and fiscal policy on economic growth in Malaysia between 1970 and 2003 using the autoregressive distributed lag (ARDL) approach and bounds test as proposed by Pesaran et al. (2001). Based on a structure consistent with the endogenous growth theory, the ARDL results show that, overall, trade openness and fiscal policy have strong positive impacts on economic growth in Malaysia over this period. This paper also develops a system instrumental variable method to estimate the structural speed of adjustment coefficient in an error correction model.

Source: International Journal of Management Studies

DOI: 10.32890/ijms.16.2.2009.9976

Authors: Hussin Abdullah, Muszafarshah Mohd Mustafa, Muzafar Shah Habibullah

Institutions: Universiti Utara Malaysia, Universiti Putra Malaysia

Language: English

Topic: Fiscal Policy and Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W181036824

FWCI:

Cites: 43

Cited by: 14

Related to: 10