IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Assessment of Budget Sustainability in Sarawak

Listed author(s):
  • Chin-Hong Puah

    (Faculty of Economics and Business, Universiti Malaysia Sarawak)

  • Evan Lau

    (Faculty of Economics and Business, Universiti Malaysia Sarawak)

  • Hui-Fern Teo

    (Faculty of Economics and Business, Universiti Malaysia Sarawak)

This study reexamines the sustainability of budget stance of Sarawak state, 1970-2008. Using the intertemporal borrowing constraint as a framework, the study tests the long-run relationship between government revenue and expenditure. Empirical results demonstrate a long-run equilibrium relationship among the variables. The cointegration test result suggests that Sarawak state’s fiscal stance satisfies the weak sustainability condition. In addition, the Granger causality test result reveals a bi-directional relationship between government revenue and expenditure. This means that fiscal authorities made simultaneous decisions on expenditure and revenue. Government revenue and expenditure will mutually reinforce each other.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.aessweb.com/download.php?id=1614
Download Restriction: no

File URL: http://www.aessweb.com/archives.php?m=December&id=1614
Download Restriction: no

Article provided by Asian Economic and Social Society in its journal Asian Economic and Financial Review.

Volume (Year): 2 (2012)
Issue (Month): 8 (December)
Pages: 952-965

as
in new window

Handle: RePEc:asi:aeafrj:2012:p:952-965
Contact details of provider: Postal:
Sadeeq Block, Near Fawara Chowk, Abbasia Town, Rahim Yar Khan - 64200, Punjab, Pakistan

Web page: http://www.aessweb.com/

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:2012:p:952-965. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Qazi Muhammad Imran)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.