Does government investment crowd-in or crowd-out private investment in Malaysia?

Citation

Hajian, Hoda and Mohamed, Azali (2015) Does government investment crowd-in or crowd-out private investment in Malaysia? In: Postgraduate Conference on Economics, Public Administration and Business (PCEPAB 2015), 5 Sept. 2015, Faculty of Economics and Administration, University of Malaya. (pp. 448-455).

Abstract

Motivated by the concern of Malaysia’s government to increase private capital formation rate while the country has witnessed relatively low rate of private capital formation in the post-financial crisis area, this study aims to evaluate the long run relationship between private investment and government investment that is almost debt financed. Using a trivariate vector error correction model and time-series data covering last 44 years (from 1970 to 2013) this paper finds evidence of long-run complementary effect of government investment on private investment in Malaysia.

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Additional Metadata

Item Type:	Conference or Workshop Item (Paper)
Divisions:	Faculty of Economics and Management
Publisher:	Faculty of Economics and Administration, University of Malaya
Keywords:	Government investment; Private investment; Crowding-in/out; VECM
Depositing User:	Nabilah Mustapa
Date Deposited:	06 Mar 2019 05:34
Last Modified:	06 Mar 2019 05:34
URI:	http://psasir.upm.edu.my/id/eprint/66997
Statistic Details:	View Download Statistic

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