Borders and economic growth: The case of Sabah and her neighbours
AbstractDisparity in income across states and regions in Malaysia continues to be a matter of concern. The purpose of the present study is to investigate empirically the question of whether the economic development of the state of Sabah has an impact on her neighbouring countries or vice versa, the growth of her neighbouring countries have causal effect on the growth of the state of Sabah. Using annual data for the period 1983 to 2003, our results from employing the ARDL bounds testing approach indicate that the growth of the state of Sabah is affected by the growth of Brunei Darussalam, Sarawak, and Kalimantan Timur. Further, the growth of the state of Sabah has an impact on her neighbouring states, country and provinces during the period under study.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 12104.
Date of creation: 13 Jan 2008
Date of revision:
economic growth; Sabah; granger causality;
Find related papers by JEL classification:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
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- M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
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