Hui, Hon Chung (2013): Fiscal sustainability in Malaysia: a re-examination.
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Abstract
In this paper, I deploy a broad array of econometric tests to thoroughly examine fiscal sustainability in Malaysia. Results of the multicointegration test suggest the absence of cointegration between the cumulated cointegration errors, real government expenditure and real government revenue. Meanwhile, standard cointegration analyses indicate that the fiscal process fulfills only the weak-form sustainability. Most importantly, results from a fiscal sustainability model which incorporates revenues from oil and gas exports, do not strongly support the view that fiscal process is sustainable. Some policy-implications follow from these findings.
Item Type: | MPRA Paper |
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Original Title: | Fiscal sustainability in Malaysia: a re-examination |
Language: | English |
Keywords: | Fiscal sustainability, cointegration, tax-smoothing |
Subjects: | C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General H - Public Economics > H2 - Taxation, Subsidies, and Revenue H - Public Economics > H6 - National Budget, Deficit, and Debt > H63 - Debt ; Debt Management ; Sovereign Debt |
Item ID: | 80018 |
Depositing User: | Dr Hon Chung Hui |
Date Deposited: | 04 Jul 2017 13:29 |
Last Modified: | 26 Sep 2019 13:27 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/80018 |