Identifying drivers of the Malaysian economy using policy-relevant measures
Input-output linkages and multipliers are the two measures that are frequently used to find the drivers of an economy. Deriving from these two measures based on the traditional approach fails to consider the relative sectoral sizes. This paper introduces new linkage and multiplier measures that do n...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Faculty of Economics & Administration, University of Malaya and Malaysian Economic Association
2017
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| Online Access: | http://psasir.upm.edu.my/id/eprint/62075/1/Identifying%20drivers%20of%20the%20Malaysian%20economy%20using%20policy-relevant%20measures.pdf |
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| author | Saari, Mohd Yusof Utit, Chakrin Hamid, Nur Adilah Maji, Ibrahim Kabiru Hassan, Azman |
| author_facet | Saari, Mohd Yusof Utit, Chakrin Hamid, Nur Adilah Maji, Ibrahim Kabiru Hassan, Azman |
| author_sort | Saari, Mohd Yusof |
| collection | UPM |
| description | Input-output linkages and multipliers are the two measures that are frequently used to find the drivers of an economy. Deriving from these two measures based on the traditional approach fails to consider the relative sectoral sizes. This paper introduces new linkage and multiplier measures that do not solely adjust for the relative sizes, but also extend the measures for policy-relevant indicators in Malaysia. Comparing the results between the traditional approach and the new approach, there is a clear indication that the former incorrectly identified the drivers of the Malaysian economy. The traditional approach not only introduced bias in linkages, but also overestimated the actual size of the multipliers. The new linkage and multiplier measures that were developed in this paper can be applied for other economies in finding key drivers for specific policy goals. |
| first_indexed | 2024-03-06T09:42:00Z |
| format | Article |
| id | upm.eprints-62075 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T09:42:00Z |
| publishDate | 2017 |
| publisher | Faculty of Economics & Administration, University of Malaya and Malaysian Economic Association |
| record_format | dspace |
| spelling | upm.eprints-620752019-03-22T08:04:37Z http://psasir.upm.edu.my/id/eprint/62075/ Identifying drivers of the Malaysian economy using policy-relevant measures Saari, Mohd Yusof Utit, Chakrin Hamid, Nur Adilah Maji, Ibrahim Kabiru Hassan, Azman Input-output linkages and multipliers are the two measures that are frequently used to find the drivers of an economy. Deriving from these two measures based on the traditional approach fails to consider the relative sectoral sizes. This paper introduces new linkage and multiplier measures that do not solely adjust for the relative sizes, but also extend the measures for policy-relevant indicators in Malaysia. Comparing the results between the traditional approach and the new approach, there is a clear indication that the former incorrectly identified the drivers of the Malaysian economy. The traditional approach not only introduced bias in linkages, but also overestimated the actual size of the multipliers. The new linkage and multiplier measures that were developed in this paper can be applied for other economies in finding key drivers for specific policy goals. Faculty of Economics & Administration, University of Malaya and Malaysian Economic Association 2017 Article NonPeerReviewed text en http://psasir.upm.edu.my/id/eprint/62075/1/Identifying%20drivers%20of%20the%20Malaysian%20economy%20using%20policy-relevant%20measures.pdf Saari, Mohd Yusof and Utit, Chakrin and Hamid, Nur Adilah and Maji, Ibrahim Kabiru and Hassan, Azman (2017) Identifying drivers of the Malaysian economy using policy-relevant measures. Malaysian Journal of Economic Studies, 54 (1). pp. 23-40. ISSN 1511-4554 https://mjes.um.edu.my/index.php/MJES/article/view/2607 10.22452/MJES.vol54no1.2 |
| spellingShingle | Saari, Mohd Yusof Utit, Chakrin Hamid, Nur Adilah Maji, Ibrahim Kabiru Hassan, Azman Identifying drivers of the Malaysian economy using policy-relevant measures |
| title | Identifying drivers of the Malaysian economy using policy-relevant measures |
| title_full | Identifying drivers of the Malaysian economy using policy-relevant measures |
| title_fullStr | Identifying drivers of the Malaysian economy using policy-relevant measures |
| title_full_unstemmed | Identifying drivers of the Malaysian economy using policy-relevant measures |
| title_short | Identifying drivers of the Malaysian economy using policy-relevant measures |
| title_sort | identifying drivers of the malaysian economy using policy relevant measures |
| url | http://psasir.upm.edu.my/id/eprint/62075/1/Identifying%20drivers%20of%20the%20Malaysian%20economy%20using%20policy-relevant%20measures.pdf |
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