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A Contemporary Re-Examination Of Malaysia’S Economic Growth: The Issues Of Equity, Efficiency And Liberalization

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  • AZFAR HILMI BAHARUDIN

    (Department of Economics, Universiti Teknologi MARA, Shah Alam, Malaysia)

  • YAP SU FEI

    (Department of Economics, University of Malaya, Kuala Lumpur, Malaysia)

Abstract

This paper is an empirical investigation on economic growth for Malaysia, with focus on income inequality, foreign direct investment (FDI), financial development and trade. Co-integrating regression procedures namely, fully modified ordinary least squares (FMOLS), canonical co-integrating regression (CCR) and dynamic ordinary least squares (DOLS) were employed. Positive relationship between growth with financial development and trade are found to be consistent across all estimations. Income inequality on the other hand though negative, does not seem to exhibit robust significant statistical relationship with growth. The orders of integration for variables used have been demonstrated to be governed such that a long-run relationship prevails.

Suggested Citation

  • Azfar Hilmi Baharudin & Yap Su Fei, 2017. "A Contemporary Re-Examination Of Malaysia’S Economic Growth: The Issues Of Equity, Efficiency And Liberalization," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(02), pages 509-530, June.
    • Handle: RePEc:wsi:serxxx:v:62:y:2017:i:02:n:s0217590815501167
    DOI: 10.1142/S0217590815501167
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