Hubungan tabungan-pelaburan dengan moboliti modal Negara

Caroline Geetha Arokiadasan, (2002) Hubungan tabungan-pelaburan dengan moboliti modal Negara. (Unpublished)

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Abstract

The purpose of this research is to determine whether Malaysia has perfect capital mobility. The discussion begins by explaining the trend of domestic savings and domestic investment. Malaysia experienced inadequate capital to finance its domestic investment during the 1971-72, 1974-75, 1980-86 and 1989-95 periods. Usually deficiency of capital to finance domestic investment is solved using foreign long term capital. Whether economy depends too much on foreign long term capital, it can increase productivity and employment in the short run but in the long run, it could lead to a deficit in the balance of payment. To determine how much domestic investment is financed by domestic savings, the methodology of Feldstein-Horioka (1980), Frankel (1986), Bayoumi (1990) and Tesar (1988) is used. Further empirical test are done to determine whether the capital mobility of Malaysia is influenced by the endogenity problem and the interference of government through fiscal and monetary policies. Finally a forecasting model is formulated. This is done by finding the short run and the long run equilibrium between the domestic savings and investment. The study reveals that domestic investment has a positive correlation with domestic savings. A large proportion of domestic savings is used to finance domestic investment. This means Malaysia has an imperfect capital mobility. Further empirical tests proved that endogenity problem did iivt i • .f!u\:ii\:\: the capital mobility of Malaysia but the government's interference in the c .... A ... n,.,..~' J.,.., .,,..;-- +;,..,..",1 ,..-,.1 ___ ,..+,.._,. _,..1;,..;,.,,. _,..,1 ..... +1.,... ~ ___ ..t' __ • "..,,_;.,,1 __ h:l:<k" .. \.fVl1V ...... 1J v J ,,,, •.• :u,J..lf) .1.1..,)""''''''1. &.Lt."''"'' 1 ...... VU.wI.4.41') PUll,,",'''''':» lU.U\o,£"'" Ul¥ u..La.p""1. ... ....,"'" ""u..p1.\.44~ 111VV1U.L.J LV become perfect. The forecasting model formulated could not be used because a long run relationship between savings and investment could not be established using the cointegration analysis. Finally, since empirical tests prove evidence of correlation between domestic savings and domestic investment, some policies are suggested to increase the level of domestic savings in the long run.

Item Type: Research Report
Uncontrolled Keywords: Malaysia , domestic savings , domestic investment , economy
Subjects: H Social Sciences > HF Commerce
Depositing User: Noraini
Date Deposited: 29 Aug 2019 23:53
Last Modified: 29 Aug 2019 23:53
URI: http://eprints.ums.edu.my/id/eprint/23439

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