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Assessing development efficiency in Malaysian economy: input-output approach

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  • Hussain Ali Bekhet

Abstract

This paper attempts to analyse and assess the changes in the efficiency level in the Malaysian economy, especially during the period 1980–2005, when the planners formulated and implemented nine plans so far. We used five input-output (I-O) tables published so far by the Department of Statistics, Malaysia for the period under study. The year 2005 is chosen as the closing year of study because this is the last year for which an I-O table is available. This comparative study focuses on changes in the economic structure with different levels of development over time through the changes in the A and (I − A)−1 matrices over the study period. New evidence is found in this study: first, the efficiency degree between demand and supply side for the Malaysian economy still remains weak and changeable over the study period. Also, the results indicate a rather remarkable degree of commonality in the patterns of growth processes, with more significant differences between sectors than between tables. However, most changes within sectors, and the Malaysian table as a whole, seem to result from changes in the level of the efficiency.

Suggested Citation

  • Hussain Ali Bekhet, 2012. "Assessing development efficiency in Malaysian economy: input-output approach," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(3), pages 297-325.
  • Handle: RePEc:ids:ijecbr:v:4:y:2012:i:3:p:297-325
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    Cited by:

    1. Hussain Ali Bekhet & Tahira Yasmin, 2014. "Assessment of the global financial crisis effects on energy consumption and economic growth in Malaysia: An input–output analysis," International Economics, CEPII research center, issue 140, pages 49-70.
    2. Bekhet, Hussain Ali, 2013. "Assessing structural changes in the Malaysian economy: I–O approach," Economic Modelling, Elsevier, vol. 30(C), pages 126-135.

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