Is The Export-Led Growth Hypothesis Valid for Malaysia?

Ong , Poh Lim and Tan , Shirleen Shea Linga (2015) Is The Export-Led Growth Hypothesis Valid for Malaysia? In: Conference Proceedings of Social Sciences Postgraduate International Seminar (SSPIS). School of Social Sciences, Pulau Pinang, Malaysia, pp. 343-349. ISBN 978-967-11473-2-0

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    Abstract

    Export has been one of the most important economic components for developing countries. The relationship between exports and economic growth has been widely discussed and empirically tested in a number of developing countries including Malaysia. Based on empirical evidence, although results of the study suggest export-led growth in many developing countries, but the relationship between exports and economic growth is not robust because empirical results are not consistent. As most of the studies, many question of formulation that still need to be further investigated and proceeded with a solid outcome. In overview, this study is to examine the export-led growth hypothesis by analyzing the case of Malaysia from 1970 to 2013. We are applying time series econometric techniques of cointegration and causality on a long run and short run relationship on GDP, exports and import of Malaysia. The result revealed that GDP, export and import Malaysia; they are a unidirectional causal relationship which economic growth drive export and import growth. This result highlighted the importance of economic stability and continuous growth for Malaysia to further improve the export and attract more foreign and domestic investment.

    Item Type: Book Section
    Subjects: H Social Sciences
    Divisions: Pusat Pengajian Sains Kemasyarakatan (School of Social Sciences) > Social Sciences Postgraduate International Seminar (SSPIS)
    Depositing User: ASM Ab Shukor Mustapa
    Date Deposited: 23 Nov 2017 15:07
    Last Modified: 23 Nov 2017 15:07
    URI: http://eprints.usm.my/id/eprint/37614

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