External balance and budget in Malaysia

Wong, Hock Tsen (2014) External balance and budget in Malaysia. Asian Academy of Management Journal, 10 (2). pp. 37-54. ISSN 1394-2603

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Abstract

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.

Item Type: Article
Uncontrolled Keywords: external balance, budget, Malaysia, causality
Subjects: H Social Sciences > HG Finance
Divisions: FACULTY > Faculty of Business, Economics and Accounting
Depositing User: Munira
Date Deposited: 03 Apr 2018 01:48
Last Modified: 03 Apr 2018 01:48
URI: http://eprints.ums.edu.my/id/eprint/19667

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