Empirical Analysis on the Factors Affecting Economic Sustainable Development Path in Malaysia: An ARDL Cointegration Approach
Through its latest economic model, Malaysia has outlined ‘sustainability' as the key element to achieve the Vision 2020 – to become a high-income nation by year 2020. This study analyzed the possible factors affecting sustainable development path in Malaysia using the Adjusted Net Savings (ANS...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
EconJournals
2016-10-01
|
| Series: | International Journal of Economics and Financial Issues |
| Online Access: | http://mail.econjournals.com/index.php/ijefi/article/view/3117 |
| _version_ | 1797908568310022144 |
|---|---|
| author | Faridah Pardi Abdol Samad Nawi |
| author_facet | Faridah Pardi Abdol Samad Nawi |
| author_sort | Faridah Pardi |
| collection | DOAJ |
| description |
Through its latest economic model, Malaysia has outlined ‘sustainability' as the key element to achieve the Vision 2020 – to become a high-income nation by year 2020. This study analyzed the possible factors affecting sustainable development path in Malaysia using the Adjusted Net Savings (ANS) indicator; as projected by World Bank from 1990s. We firstly conducted the ‘Structural break-unit root tests' to assume stationarity of series with the possible presence of economic shocks during the period of 1972 to 2011. For model estimation, we applied the ARDL technique to find the cointegration between money supply (LFIN), nonrenewable natural resource (fuels, ores and metals) exports (LNR), trade openness (LTRD) and urban population (LURB) with ANS values (LANS). In the short-run, LFIN and LTRD have significant negative impact on LANS while in long run, LNR and LURB tend to have significant negative impact on economic sustainability in Malaysia.
Keywords: Adjusted net savings, economic sustainable development path, structural break, Malaysia
JEL Classifications: O47; Q01; C32
|
| first_indexed | 2024-04-10T10:54:49Z |
| format | Article |
| id | doaj.art-e8e5828f286344869cf58fdfcad28830 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:54:49Z |
| publishDate | 2016-10-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-e8e5828f286344869cf58fdfcad288302023-02-15T16:20:02ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382016-10-0166SEmpirical Analysis on the Factors Affecting Economic Sustainable Development Path in Malaysia: An ARDL Cointegration ApproachFaridah PardiAbdol Samad Nawi Through its latest economic model, Malaysia has outlined ‘sustainability' as the key element to achieve the Vision 2020 – to become a high-income nation by year 2020. This study analyzed the possible factors affecting sustainable development path in Malaysia using the Adjusted Net Savings (ANS) indicator; as projected by World Bank from 1990s. We firstly conducted the ‘Structural break-unit root tests' to assume stationarity of series with the possible presence of economic shocks during the period of 1972 to 2011. For model estimation, we applied the ARDL technique to find the cointegration between money supply (LFIN), nonrenewable natural resource (fuels, ores and metals) exports (LNR), trade openness (LTRD) and urban population (LURB) with ANS values (LANS). In the short-run, LFIN and LTRD have significant negative impact on LANS while in long run, LNR and LURB tend to have significant negative impact on economic sustainability in Malaysia. Keywords: Adjusted net savings, economic sustainable development path, structural break, Malaysia JEL Classifications: O47; Q01; C32 http://mail.econjournals.com/index.php/ijefi/article/view/3117 |
| spellingShingle | Faridah Pardi Abdol Samad Nawi Empirical Analysis on the Factors Affecting Economic Sustainable Development Path in Malaysia: An ARDL Cointegration Approach International Journal of Economics and Financial Issues |
| title | Empirical Analysis on the Factors Affecting Economic Sustainable Development Path in Malaysia: An ARDL Cointegration Approach |
| title_full | Empirical Analysis on the Factors Affecting Economic Sustainable Development Path in Malaysia: An ARDL Cointegration Approach |
| title_fullStr | Empirical Analysis on the Factors Affecting Economic Sustainable Development Path in Malaysia: An ARDL Cointegration Approach |
| title_full_unstemmed | Empirical Analysis on the Factors Affecting Economic Sustainable Development Path in Malaysia: An ARDL Cointegration Approach |
| title_short | Empirical Analysis on the Factors Affecting Economic Sustainable Development Path in Malaysia: An ARDL Cointegration Approach |
| title_sort | empirical analysis on the factors affecting economic sustainable development path in malaysia an ardl cointegration approach |
| url | http://mail.econjournals.com/index.php/ijefi/article/view/3117 |
| work_keys_str_mv | AT faridahpardi empiricalanalysisonthefactorsaffectingeconomicsustainabledevelopmentpathinmalaysiaanardlcointegrationapproach AT abdolsamadnawi empiricalanalysisonthefactorsaffectingeconomicsustainabledevelopmentpathinmalaysiaanardlcointegrationapproach |