Private and public investment in Malaysia: A panel time-series analysis
Public capital hypothesis explains that a positive relationship exists between private and public investment. This paper examines the validity of the hypothesis by using a panel time series analysis on four sectors of the Malaysian economy (agriculture, industry and trade, transportation and communi...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2011
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| Online Access: | https://repo.uum.edu.my/id/eprint/15032/1/51-310-1-PB.pdf |
| _version_ | 1803626897874092032 |
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| author | Hassan, Sallahuddin Othman, Zalila Abd Karim, Mohd Zaini |
| author_facet | Hassan, Sallahuddin Othman, Zalila Abd Karim, Mohd Zaini |
| author_sort | Hassan, Sallahuddin |
| collection | UUM |
| description | Public capital hypothesis explains that a positive relationship exists between private and public investment. This paper examines the validity of the hypothesis by using a panel time series analysis on four sectors of the Malaysian economy (agriculture, industry and trade, transportation and communication, and construction). Panel co-integration analysis is used to prove the relationship between private domestic investment and public investment by using panel data for the period of 1976–2006.Two interaction variables, public investment and gross domestic product and investment and privatization policy were included as independent variables to take into account the influence of gross domestic product and privatization policy on the effect of public investment on private investment.Results of the study indicate that public investment has positive effect on private investment in all the three sectors except agricultural sector, suggesting that government expenditure encourage more private investment if focus is given towards productive expenditure. |
| first_indexed | 2024-07-04T05:57:28Z |
| format | Article |
| id | uum-15032 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T05:57:28Z |
| publishDate | 2011 |
| publisher | EconJournals |
| record_format | dspace |
| spelling | uum-150322016-04-24T02:54:20Z https://repo.uum.edu.my/id/eprint/15032/ Private and public investment in Malaysia: A panel time-series analysis Hassan, Sallahuddin Othman, Zalila Abd Karim, Mohd Zaini HG Finance Public capital hypothesis explains that a positive relationship exists between private and public investment. This paper examines the validity of the hypothesis by using a panel time series analysis on four sectors of the Malaysian economy (agriculture, industry and trade, transportation and communication, and construction). Panel co-integration analysis is used to prove the relationship between private domestic investment and public investment by using panel data for the period of 1976–2006.Two interaction variables, public investment and gross domestic product and investment and privatization policy were included as independent variables to take into account the influence of gross domestic product and privatization policy on the effect of public investment on private investment.Results of the study indicate that public investment has positive effect on private investment in all the three sectors except agricultural sector, suggesting that government expenditure encourage more private investment if focus is given towards productive expenditure. EconJournals 2011 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/15032/1/51-310-1-PB.pdf Hassan, Sallahuddin and Othman, Zalila and Abd Karim, Mohd Zaini (2011) Private and public investment in Malaysia: A panel time-series analysis. International Journal of Economics and Financial Issues, 1 (4). pp. 199-210. ISSN 2146-4138 http://www.econjournals.com/ |
| spellingShingle | HG Finance Hassan, Sallahuddin Othman, Zalila Abd Karim, Mohd Zaini Private and public investment in Malaysia: A panel time-series analysis |
| title | Private and public investment in Malaysia: A panel time-series analysis |
| title_full | Private and public investment in Malaysia: A panel time-series analysis |
| title_fullStr | Private and public investment in Malaysia: A panel time-series analysis |
| title_full_unstemmed | Private and public investment in Malaysia: A panel time-series analysis |
| title_short | Private and public investment in Malaysia: A panel time-series analysis |
| title_sort | private and public investment in malaysia a panel time series analysis |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/15032/1/51-310-1-PB.pdf |
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