Testing Budget Sustainability In Malaysia
This study looks at the maintainability or sustainability of the budget position of Malaysia amid the time of 1982 until 2013. Utilizing the typical intertemporal borrowing constraints as a framework, the study tests the long run relationship between government revenue, government expenditure and...
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| Main Author: | |
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| Format: | Final Year Project Report |
| Language: | English |
| Published: |
Universiti Malaysia Sarawak (UNIMAS)
2015
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| Online Access: | http://ir.unimas.my/id/eprint/35921/2/khadijah%20%28fulltext%29.pdf http://ir.unimas.my/id/eprint/35921/ |
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| Summary: | This study looks at the maintainability or sustainability of the budget position
of Malaysia amid the time of 1982 until 2013. Utilizing the typical intertemporal
borrowing constraints as a framework, the study tests the long run relationship
between government revenue, government expenditure and real gross domestic
product. The empirical result demonstrates that long-run relationship exists among
variables utilized. The cointegration result recommends that Malaysia's fiscal stance
fulfill the weak sustainability condition. Other than that, the Granger causality result
shows that there is short-run relationship among government revenue, government
expenditure and real gross domestic product. Having said that, it is clear that the
Malaysian government would consider the marginal cost and revenue when forming a
choice in deciding the fitting level of government consumption and revenue to
advantage the nation's economy. |
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