Testing nonlinear convergence in Malaysia

The purpose of the present paper is to examine income convergence in Malaysia by using the nonlinear unit root test due to Kapetanios et al. (KSS, 2003) and extended by Chong et al. (CHLL, 2008) to permit the test of long-run convergence and catching-up hypotheses. We apply the KSS-CHLL nonlinear un...

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Main Authors: Habibullah, Muzafar Shah, Awang Marikan, Dayang Afizzah, Liew, Venus Khim Sen, Lim, Kian Ping
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2013
Online Access:http://psasir.upm.edu.my/id/eprint/30838/1/30338.pdf
http://psasir.upm.edu.my/id/eprint/30838/
http://www.ukm.my/fep/jem/content/2013.html
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spelling my.upm.eprints.308382016-01-21T00:27:26Z http://psasir.upm.edu.my/id/eprint/30838/ Testing nonlinear convergence in Malaysia Habibullah, Muzafar Shah Awang Marikan, Dayang Afizzah Liew, Venus Khim Sen Lim, Kian Ping The purpose of the present paper is to examine income convergence in Malaysia by using the nonlinear unit root test due to Kapetanios et al. (KSS, 2003) and extended by Chong et al. (CHLL, 2008) to permit the test of long-run convergence and catching-up hypotheses. We apply the KSS-CHLL nonlinear unit root for the test of nonlinear convergence between thirteen states with respect to Wilayah Persekutuan (the riches state) of Malaysia for the period 1965 to 2003. Generally, our results suggest that out of the thirteen states, only Kedah, Negeri Sembilan, Perak, Perlis and Selangor support the long-run convergence hypothesis while Johor, Kelantan, Melaka, Pahang and Penang suggest catching-up. Lastly, Sabah, Sarawak and Terengganu indicate income divergence from Wilayah Persekutuan. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/30838/1/30338.pdf Habibullah, Muzafar Shah and Awang Marikan, Dayang Afizzah and Liew, Venus Khim Sen and Lim, Kian Ping (2013) Testing nonlinear convergence in Malaysia. Jurnal Ekonomi Malaysia, 47 (1). pp. 155-162. ISSN 0126-1962 http://www.ukm.my/fep/jem/content/2013.html
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/
language English
description The purpose of the present paper is to examine income convergence in Malaysia by using the nonlinear unit root test due to Kapetanios et al. (KSS, 2003) and extended by Chong et al. (CHLL, 2008) to permit the test of long-run convergence and catching-up hypotheses. We apply the KSS-CHLL nonlinear unit root for the test of nonlinear convergence between thirteen states with respect to Wilayah Persekutuan (the riches state) of Malaysia for the period 1965 to 2003. Generally, our results suggest that out of the thirteen states, only Kedah, Negeri Sembilan, Perak, Perlis and Selangor support the long-run convergence hypothesis while Johor, Kelantan, Melaka, Pahang and Penang suggest catching-up. Lastly, Sabah, Sarawak and Terengganu indicate income divergence from Wilayah Persekutuan.
format Article
author Habibullah, Muzafar Shah
Awang Marikan, Dayang Afizzah
Liew, Venus Khim Sen
Lim, Kian Ping
spellingShingle Habibullah, Muzafar Shah
Awang Marikan, Dayang Afizzah
Liew, Venus Khim Sen
Lim, Kian Ping
Testing nonlinear convergence in Malaysia
author_facet Habibullah, Muzafar Shah
Awang Marikan, Dayang Afizzah
Liew, Venus Khim Sen
Lim, Kian Ping
author_sort Habibullah, Muzafar Shah
title Testing nonlinear convergence in Malaysia
title_short Testing nonlinear convergence in Malaysia
title_full Testing nonlinear convergence in Malaysia
title_fullStr Testing nonlinear convergence in Malaysia
title_full_unstemmed Testing nonlinear convergence in Malaysia
title_sort testing nonlinear convergence in malaysia
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2013
url http://psasir.upm.edu.my/id/eprint/30838/1/30338.pdf
http://psasir.upm.edu.my/id/eprint/30838/
http://www.ukm.my/fep/jem/content/2013.html
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score 13.211869