Cover Image

The role of macroeconomic fundamentals in Malaysian post recession growth.

This study aims to find out the role of macroeconomic fundamentals in Malaysian post recession growth. The selected macroeconomic variables are exports, imports, price level, money supply, interest rate, exchange rate and government expenditure. The technique of cointegration was employed to assess...

Full description

Saved in:
Bibliographic Details
Main Author: Lee, Chin
Other Authors: N. M. P., Verma
Format: Book Section
Published: Springer 2013
Online Access:http://psasir.upm.edu.my/id/eprint/26121/
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.upm.eprints.26121
record_format eprints
spelling my.upm.eprints.261212014-03-12T04:32:04Z http://psasir.upm.edu.my/id/eprint/26121/ The role of macroeconomic fundamentals in Malaysian post recession growth. Lee, Chin This study aims to find out the role of macroeconomic fundamentals in Malaysian post recession growth. The selected macroeconomic variables are exports, imports, price level, money supply, interest rate, exchange rate and government expenditure. The technique of cointegration was employed to assess the long run equilibrium relationships among the variables. Then, this study performs the Granger causality tests based on VECM to establish the short run causality among the variables. The long-run cointegrating relationship shown that an increase in exports, government expenditure or depreciation of exchange rate will promote long-term economic growth while increase in inflation, interest rate and imports will tamper the Malaysian economic growth. The results of short-run Granger-causality indicated that price level and government spending Granger-caused economic growth in the short-run. In conclusion, based on the results of long-run and short run analysis, the fiscal policy is probably the most appropriate tool in promoting economic growth in Malaysia during the post recession period. Springer N. M. P., Verma 2013 Book Section PeerReviewed Lee, Chin (2013) The role of macroeconomic fundamentals in Malaysian post recession growth. In: Recession and Its Aftermath: Adjustments in the United States, Australia, and the Emerging Asia. Springer, India, pp. 113-127. ISBN 9788132205319; EISBN: 9788132205326 10.1007/978-81-322-0532-6
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
description This study aims to find out the role of macroeconomic fundamentals in Malaysian post recession growth. The selected macroeconomic variables are exports, imports, price level, money supply, interest rate, exchange rate and government expenditure. The technique of cointegration was employed to assess the long run equilibrium relationships among the variables. Then, this study performs the Granger causality tests based on VECM to establish the short run causality among the variables. The long-run cointegrating relationship shown that an increase in exports, government expenditure or depreciation of exchange rate will promote long-term economic growth while increase in inflation, interest rate and imports will tamper the Malaysian economic growth. The results of short-run Granger-causality indicated that price level and government spending Granger-caused economic growth in the short-run. In conclusion, based on the results of long-run and short run analysis, the fiscal policy is probably the most appropriate tool in promoting economic growth in Malaysia during the post recession period.
author2 N. M. P., Verma
author_facet N. M. P., Verma
Lee, Chin
format Book Section
author Lee, Chin
spellingShingle Lee, Chin
The role of macroeconomic fundamentals in Malaysian post recession growth.
author_sort Lee, Chin
title The role of macroeconomic fundamentals in Malaysian post recession growth.
title_short The role of macroeconomic fundamentals in Malaysian post recession growth.
title_full The role of macroeconomic fundamentals in Malaysian post recession growth.
title_fullStr The role of macroeconomic fundamentals in Malaysian post recession growth.
title_full_unstemmed The role of macroeconomic fundamentals in Malaysian post recession growth.
title_sort role of macroeconomic fundamentals in malaysian post recession growth.
publisher Springer
publishDate 2013
url http://psasir.upm.edu.my/id/eprint/26121/
_version_ 1643828836765270016
score 13.211869

Similar Items