Energy Subsidy and Economic Production: The Evidence from Malaysia and Indonesia
Energy subsidy policy is one of the most favorable policies implemented by many oil producer countries in improving their economic development. However, the economic outcome is still debatable due to the implications on economic efficiency, fiscal policy and et cetera. As two main oil producer co...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Book Section |
| Language: | English |
| Published: |
Universiti Sains Malaysia
2016
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| Subjects: | |
| Online Access: | http://eprints.usm.my/53776/1/pages%20from%2024-30%20iccei2016-proceedings.pdf |
| _version_ | 1797013089710768128 |
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| author | Husaini, Dzul Hadzwan Hooi, Hooi Lean Kueh, Jerome |
| author2 | Ee, Shiang Lim |
| author_facet | Ee, Shiang Lim Husaini, Dzul Hadzwan Hooi, Hooi Lean Kueh, Jerome |
| author_sort | Husaini, Dzul Hadzwan |
| collection | USM |
| description | Energy subsidy policy is one of the most favorable policies implemented by many oil
producer countries in improving their economic development. However, the economic
outcome is still debatable due to the implications on economic efficiency, fiscal policy and et
cetera. As two main oil producer countries in ASEAN 5, both Malaysia and Indonesia had
allocated 5% of energy subsidy (% of GDP) averagely throughout the period of 1990-2014.
This paper is intended to study the impact of energy subsidy on economic production in
Malaysia and Indonesia by employing a dynamic panel data analysis. Our finding suggests
that the energy subsidy affects the growth output positively in the long run. We conclude that
energy subsidy is significant to promote economic growth in both countries. The absence of
energy subsidy will bring harm to the economic growth. However, if a reduction of energy
subsidy is essential to improve efficiency and fiscal pressure, we suggest the policymaker to
implement some offsetting policies to cushion the economy from any shocks. |
| first_indexed | 2024-03-06T15:57:07Z |
| format | Book Section |
| id | usm.eprints-53776 |
| institution | Universiti Sains Malaysia |
| language | English |
| last_indexed | 2024-03-06T15:57:07Z |
| publishDate | 2016 |
| publisher | Universiti Sains Malaysia |
| record_format | dspace |
| spelling | usm.eprints-537762022-08-02T07:08:24Z http://eprints.usm.my/53776/ Energy Subsidy and Economic Production: The Evidence from Malaysia and Indonesia Husaini, Dzul Hadzwan Hooi, Hooi Lean Kueh, Jerome HC Economic History and Conditions Energy subsidy policy is one of the most favorable policies implemented by many oil producer countries in improving their economic development. However, the economic outcome is still debatable due to the implications on economic efficiency, fiscal policy and et cetera. As two main oil producer countries in ASEAN 5, both Malaysia and Indonesia had allocated 5% of energy subsidy (% of GDP) averagely throughout the period of 1990-2014. This paper is intended to study the impact of energy subsidy on economic production in Malaysia and Indonesia by employing a dynamic panel data analysis. Our finding suggests that the energy subsidy affects the growth output positively in the long run. We conclude that energy subsidy is significant to promote economic growth in both countries. The absence of energy subsidy will bring harm to the economic growth. However, if a reduction of energy subsidy is essential to improve efficiency and fiscal pressure, we suggest the policymaker to implement some offsetting policies to cushion the economy from any shocks. Universiti Sains Malaysia Ee, Shiang Lim Chee, Hong Law Hooi, Hooi Lean 2016 Book Section PeerReviewed application/pdf en http://eprints.usm.my/53776/1/pages%20from%2024-30%20iccei2016-proceedings.pdf Husaini, Dzul Hadzwan and Hooi, Hooi Lean and Kueh, Jerome (2016) Energy Subsidy and Economic Production: The Evidence from Malaysia and Indonesia. In: Proceedings of Second International Conference on Contemporary Economic Issues. Universiti Sains Malaysia, Bali, Indonesia, pp. 24-30. ISBN 978-967-11473-6-8 |
| spellingShingle | HC Economic History and Conditions Husaini, Dzul Hadzwan Hooi, Hooi Lean Kueh, Jerome Energy Subsidy and Economic Production: The Evidence from Malaysia and Indonesia |
| title | Energy Subsidy and Economic Production: The Evidence from Malaysia
and Indonesia |
| title_full | Energy Subsidy and Economic Production: The Evidence from Malaysia
and Indonesia |
| title_fullStr | Energy Subsidy and Economic Production: The Evidence from Malaysia
and Indonesia |
| title_full_unstemmed | Energy Subsidy and Economic Production: The Evidence from Malaysia
and Indonesia |
| title_short | Energy Subsidy and Economic Production: The Evidence from Malaysia
and Indonesia |
| title_sort | energy subsidy and economic production the evidence from malaysia and indonesia |
| topic | HC Economic History and Conditions |
| url | http://eprints.usm.my/53776/1/pages%20from%2024-30%20iccei2016-proceedings.pdf |
| work_keys_str_mv | AT husainidzulhadzwan energysubsidyandeconomicproductiontheevidencefrommalaysiaandindonesia AT hooihooilean energysubsidyandeconomicproductiontheevidencefrommalaysiaandindonesia AT kuehjerome energysubsidyandeconomicproductiontheevidencefrommalaysiaandindonesia |