Government intervention in Malaysia: Fostering or disrupting economic growth?
|dc.contributor.author||Lim, Seow Kiat||en_NZ|
|dc.identifier.citation||Lim, S. K. (2000, November). Government intervention in Malaysia: Fostering or disrupting economic growth? (Thesis, Master of Commerce). Retrieved from http://hdl.handle.net/10523/1335||en|
|dc.description.abstract||This study considers the effects of government intervention on the economic development in Malaysia from the late 1950s to 1997. While an increasing number of studies use descriptive analyses to examine the impact the Malaysian Government has had on the economic growth of Malaysia, they are rarely supported by evidence from regression analysis. Therefore, this study employs both qualitative and regression analysis to gain a deeper understanding of the relationship between government intervention and economic growth. Particular attention is given to Malaysia's economic progress and how closely the performance of government policy conformed to its planning. A multivariate regression model is used to investigate the statistical relation between the growth of government consumption (the proxy for government activity) and the growth of nominal gross domestic product. The other variables in the model are growth of exports, imports, investment, private consumption and inflation rates. The findings show that the growth of exports, investment and private consumption had a positive, simultaneous and significant relationship with the economic growth. The growth of government consumption, however, had a significant, positive and lagged two-year correlation with the economic growth. Meanwhile, the descriptive (qualitative) analysis showed that the Malaysian Government might have played an important role in the country's economic development as a catalyst. This study therefore concludes that the intervention of the Malaysian Government in the economic development from 1958 to 1997 had been beneficial to the economy, although to a lesser extent than the impact from exports and private investment. The lagged impact of the government reflects the delay in the government programme delivery system and suggests there are rooms for improvement. In addition, the distortions induced by various government policies and the lack of transparency in government decision-making had reduced, at least to some extent, the effectiveness of government policy implementation.||en_NZ|
|dc.subject||effects of government intervention||en_NZ|
|dc.subject||1950s to 1997||en_NZ|
|dc.title||Government intervention in Malaysia: Fostering or disrupting economic growth?||en_NZ|
|thesis.degree.name||Master of Commerce|
|thesis.degree.grantor||University of Otago||en_NZ|
|otago.school.eprints||Finance & Quantitative Analysis||en_NZ|
|dc.description.references||Acemoglu, D. and T. Verdier, 2000, The choice between market failures arid corruption, The American Economic Review 90(1), 194-211. Allan, R.H., J.P. Nieuwenhuysen, and N.R. Norman, 1979, Government intervention in the economy of Australia, in: P. Maunder, Government intervention in the developed economy, (Croom Helm, London), 41-71. Alexander, S.S., 1952, Effects of a devaluation on a trade balance, IMF Staff Papers, No.2, 1951-52. Baffes, J. and A. Shah, 1998, Productivity of public spending, sectoral allocation choices, and economic growth, Economic Development And Cultural Change 56 (2), 291-303. Barro, R.J., 1990, Government spending in a simple model of endogeneous growth, Journal of Political Economy 98(5), S 103-25. Barro, Robert J., 1997, Determinants of economic growth: a cross-country empirical study, (The MIT Press, Cambridge, London). Branson, W.H., 1979, Macroeconomic theory and policy, (Harper & Row, New York). Chang, H.J., 1994, The political economy of industry policy, (Macmillan, London). Chang, R., 1999, Understanding recent crises in emerging markets, Economic Review – Federal Reserve Bank of Atlanta. Chhibber, A., 1997, The state in a changing world, Finance and Development 34(3), 17- 20. Cho, George, 1990, The Malaysian economy: spatial perspectives, (Routledge, London). Emmott B, 1999, The 20th century: helping hands, grabbing hands, The Economist, September 11, 1999, S19-S21. Feder, R., 1982, On exports and economic growth, Journal of Development Economics 12, 59-73. Glasure, Y.U. and A. Lee, September 1999, The export-led growth hypothesis: the role of the exchange rate, money and government expenditure from Korea, Atlantic Economic Journal 27(3), 260-72. Gomez, E.T. and K.S. Jomo, 1997, Malaysia's political economy: politics, patronage, and profits, (Cambridge University Press, Cambridge, New York). Grier, K.B. and G. Tullock, 1989, An empirical analysis of cross-national economic growth, 1950-1980, Journal of Monetary Economics 24(2), 259-76. Humpage, O.F. and W.P. Osterberg, 2000, Why intervention rarely works, Federal Reserve Bank of Cleveland, 1-4, Jones, H.G., 1979, Government intervention in the economy of Sweden, in: P. Maunder, Government intervention in the developed economy, (Croom Helm, London), 101- 129. Kaufman, G.G., 2000, How real is the risk of a massive banking collapse? Regulation 23(1), 25-30. Kormendi, R.C. and P.G. Meguire, 1985, Macroeconomic determinants of growth: crosscountry evidence, Journal of Monetary Economics 16, 141-63. Krugman, P., 1979, WA model of balance of payments crises, Journal of Money 3, Credit, and Banking 11, 311-25. Landau, D., 1983, Government expenditure and economic growth: a cross-country study, Southern Economic Journal 49 (January), 783-92. Landau, D., 1986, Government and economic growth in the less developed countries: an empirical study for 1960 to 1980, Economic Development and Cultural Change 35(1), 35-75. Learner, E.E., 1978, Specification searches: ad hoc inference from non-experimental data, (Wiley, New York). Lerner, A.P., 1948, The burden of the public debt, in: L.A. Metzler et al., Income, employment, and public policy: essays in honour of Alvin Hansen, (W.W. Norton, New York). Leete, R., 1996, Malaysia's demographic transition: rapid development, culture, and politics, (Oxford University Press, Kuala Lumpur). Levine, R. and D. Renelt, 1992, A sensitivity analysis of cross-country growth regressions, The American Economic Review 82(4), 942-63. Levy, B., 1997, How can states foster markets? Finance and Development 34(3), 21-3. Lucas, R.E.B. and Verry, D., 1999, Restructuring the Malaysian economy: development and resources, (Macmillan, London). Mankiw, N. G., 1997, Macroeconomics, 3' d Edition, (Worth Publishers, New York). Martin B., 1993, In the public interest? Privatization and public sector reform, (Zed Books, London). Maunder, P., 1979, Government intervention in the economy of the United Kingdom, in: P. Maunder, Government intervention in the developed economy, (Croom Helm, London), 130-159. McKie, J.W., 1979, Government intervention in the economy of the United States, in: P. Maunder, Government intervention in the developed economy, (Croom Helm, London), 72-100. Michie, J. and R. Prendergast, 1998, Government intervention in a dynamic economy, New Political Economy 3(3), 391-406. Milesi-Ferretti, G.M. and A. Razin, 1996, Current account sustainability, Princeton Studies in International Finance, No.8 L Miller, S.M. and F.S. Russek, 1997, Fiscal structures and economic growth: International evidence, Economic Inquiry 35(3), 603-613. Milne, R.S. and D.K. Mauzy, 1999, Malaysian politics under Mahathir, (Routledge, London). Nelson, R., 1987, Roles of government in a mixed economy, Journal of Policy Analysis and Management, Vol. 6, 541. New Zealand Manufacturer, Oct 1998, p.30-31, World recession: a modern phenomenon? Pack, H., 2000, Industrial policy: growth elixir or poison? The World Bank Research Observer 15(1), 47-67. Peters, G. B., 1989, The politics of bureaucracy, (Longman, New York). Pereira, A.M. and Zhenhui Xu, 2000, Export growth and domestic performance, Review of International Economics 8(1), 60-73. Philpott, B., 1990, Economic growth in New Zealand: models and experience, Paper to New Zealand Association of Economists 1990 Sesquicentennial Conference, Victoria University of Wellington, New Zealand. Pitchford, J., 1990, Australia's foreign debt: myths and realities, (Allen & Unwin Australia Pty, Sydney). Riedel, J., 1990, Economic development in East Asia: doing what comes naturally?, in: H. Hughes, Achieving industrialisation in East Asia, (Cambridge University Press, Australia), 1-38. Saxonhouse, G., 1983, What is all this about industrial targeting in Japan? World Economy 6, 253-73. Salleh, I.M. and S.D. Meyanathan, 1993, Malaysia: growth, equity, and structural transformation (the lessons of East Asia), (the World Bank, Washington D.C). Shan, J. and F. Sun, 1998, On the export-led growth hypothesis for the little dragons: an empirical reinvestigation, Atlantic Economic Journal 26(4), 353-371. Shapiro, E.J., 1978, Macroeconomic analysis, (Harcourt Brace Jovanovich, New York, San Diego). Sheehey, E.J., 1993, The effect of government size on economic growth, Eastern Economic Journal 19 (3), 321-26. Smith, Adam, 1776, An inquiry into the nature and causes of the wealth of nations, in: R.H. Cam A.S. Skinner and W.B. Todd, 1976, (Oxford University Press, London). Stigler, G.C., 1971, The theory of economic regulation, Bell Journal of Economics 2(1), 137-46. The Economist, 11 January 1975, p. 88, Reviewing R. Vernon (ed.), Big business and the state: changing relations in Western Europe. Thirlwall, 1980, Balance of payments theory and the UK experience, (Macmillan, London). Tyler, W.G., 1981, Growth and export expansion in developing countries, Journal of Development Economics 9, 121-30. Wade, R., 1990, The role of government in overcoming market failure: Taiwan, Republic of Korea and Japan, in: H. Hughes, Achieving industrialisation in East Asia, (Cambridge University Press, Australia), 129-63. Wallis, J. and B. Dollery, 1999, Market failure, government failure, leadership and public policy, (MacMillan, London). Wilson, J. Q., 1989, Bureaucracy: What government agencies do and why they do it, (Basic Books, New York). -Yusof, Z,A., A.A. Hussin, Alowi, C.S. Lim, and S. Singh, 1994, Financial reform in Malaysia, in: G. Capiro, 1. Atiyas and J.A. Hanson, Financial reform - theory and experience, (Cambridge University Press, England), 276-320. Zerbe, R. 0. Jr and H. McCurdy, 2000, The end of market failure, Regulation 23(2), 10- 14, Washington.||en_NZ|
Files in this item
There are no files associated with this item.
This item is not available in full-text via OUR Archive.
If you would like to read this item, please apply for an inter-library loan from the University of Otago via your local library.
If you are the author of this item, please contact us if you wish to discuss making the full text publicly available.