Record Details

Sectoral Impact of Fiscal Policy in Malaysia

Jurnal Ekonomi Malaysia

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Field Value
 
Title Sectoral Impact of Fiscal Policy in Malaysia
 
Creator Law, Chee Hong; University of Otago
 
Subject Fiscal policy, Malaysia, Sectoral output, Vector autoregressions
E23, E62
 
Description This study examines the responses of sectoral gross domestic product to different types of government revenue and total government expenditure. The findings are useful to determine the effectiveness of fiscal policy in different economic sectors which has been ignored by previous studies. This study involves six-variable vector autoregressions with Cholesky decompositions. The results indicate that the sectoral output, especially the output in the agricultural-related sector, is sensitive to government revenue. However, the sensitivity to government expenditure is not frequently found. Additionally, a standard deviation of different government expenditure shock is found to have a positive effect on sectoral output. This implies that a positive economic environment causes government revenue and economic output to increase. A rise in government income might also create the expectations that government expenditure and investment to increase in the future. The analysis of variance decompositions shows that greater portions of the sectoral output are explained by government revenues.
 
Publisher Universiti Kebangsaan Malaysia
 
Contributor —
 
Date 2016-06-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://ejournal.ukm.my/jem/article/view/9277
 
Source Jurnal Ekonomi Malaysia; Vol 50, No 1 (2016): Jurnal Ekonomi Malaysia; 81-98
0126-1962
 
Language eng
 
Relation http://ejournal.ukm.my/jem/article/view/9277/4749
 
Rights It is the author's responsibility to ensure that the submitted work does not infringe any existing copyright. Authors should obtain permission to reproduce or adapt copyrighted material and provide evidence of approval upon submitting the final version of a manuscript.