Identifying Drivers of the Malaysian Economy Using Policy-Relevant Measures

M. Yusof Saari (), Chakrin Utit (), Nur Adilah Hamid (), Ibrahim Kabiru Maji () and Azman Hassan ()
Additional contact information
M. Yusof Saari: Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia
Chakrin Utit: Institute of Agricultural and Food Policy Studies, Universiti Putra Malaysia
Nur Adilah Hamid: Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia
Ibrahim Kabiru Maji: Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia
Azman Hassan: Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia

Malaysian Journal of Economic Studies, 2017, vol. 54, issue 1, 23-40

Abstract: 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.

Keywords: Backward linkages; forward linkages; input-output; multipliers; value added (search for similar items in EconPapers)
JEL-codes: C67 D57 O21 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mjr:journl:v:54:y:2017:i:1:p:23-40

DOI: 10.22452/MJES.vol54no1.2

Access Statistics for this article

Malaysian Journal of Economic Studies is currently edited by Lim Kian Ping

More articles in Malaysian Journal of Economic Studies from Faculty of Business and Economics, University of Malaya & Malaysian Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Malaysian Economic Association ().