FISCAL ADJUSTMENT AND DYNAMIC ECONOMICS PERFORMANCE: THE CASE OF MALAYSIA
Nanthakumar Loganathan (),
Mori Kogid (),
Suriyani Muhamad and
Nor Haslina Mohamad Akhir Additional contact information Nor Haslina Mohamad Akhir: Faculty of Management and Economics, Universiti Malaysia Terengganu, Malaysia
Abstract:
The main objective of this study is to identify the link between fiscal adjustment and dynamic economic performance in Malaysia using time series data for entire period of 1980-2009. To examine the long-run relationship between fiscal adjustment and economic performance, this has study employed the Gregory-Hansen co integration approach to capture the endogenous structural breaks in long-run equilibrium relationship with three different specifications. The finding of this study indicates that there is long-run positive co integration relationship between fiscal adjustment and economic performance in Malaysia. Therefore, the finding of this study clearly shows that the dynamic and continuous economics performance is a key element of the successful of the stability of Malaysia’s economic in Southeast Asian region, although have faced several economic crisis