Keyword Search:


Bookmark and Share

Optimal size of government and economic growth in Malaysia: empirical evidence

Ahmad, Riayati and Othman, Norashida (2014) Optimal size of government and economic growth in Malaysia: empirical evidence. In: Ninth Malaysian National Economic Conference (PERKEM), 17-19 Oct. 2014, Kuala Terengganu, Terengganu. pp. 41-48.

[img] PDF (Abstract)
48Kb

Official URL: http://www.ukm.my/fep/perkem/contents/perkem2014-0...

Abstract

An increased integration of the world economy over the last few decades has led to growing interest in its effects on different aspects of national economies. One aspect that has drawn particular attention is the effect on government spending. However, the relation between government size and economic growth is ambiguous. There are persuasive arguments for both positive and negative impacts on economic growth. This paper aims to test long run relation between government size and economic growth. Specifically, it test whether there is an “inverted U" shape relationship between public spending and economic growth or not and to find the optimal level of government size in Malaysia. It is important to measure the optimal level of government size to ensure its play an efficient role in the economy. Using the autoregressive distributed lag (ARDL) bound testing approach, the result shows that government size in Malaysia is not exceed the optimal level. Based on the results of the study, an economic policy proposal may be that the share of public expenditure and the effectiveness of public expenditure programs should be increased to foster economic growth in Malaysia.

Item Type:Conference or Workshop Item (Paper)
Keyword:Optimal government expenditure; Economic growth; ARDL bounds testing approach
Faculty or Institute:Faculty of Economics and Management
Publisher:School of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia
ID Code:48845
Deposited By: Nabilah Mustapa
Deposited On:25 Oct 2017 11:02
Last Modified:25 Oct 2017 11:02

Repository Staff Only: Edit item detail

Document Download Statistics

This item has been downloaded for since 25 Oct 2017 11:02.

View statistics for "Optimal size of government and economic growth in Malaysia: empirical evidence"