Theoretical and Applied Economics
No. 2 / 2021 (627), Summer
The effect of financial liberalization on Malaysian economic growth
University of Constantine 2, Algeria
Abstract. This study aims at identifying the impact of financial liberalization on Malaysian Economic Growth during 1990-2019. So we selected the most important factors and financial determinants that represent the financial liberalization, which in turn impacts economic growth. These variables are represented in the rate of inflation and Kaopen Index, foreign direct investment inflows, trade openness and financial deepening, and all serve as means that reflect financial liberalization. The ADF (Dickey-Fuller) unit root test revealed that all of the time series do not contain a unit root. Especially at the first Defference, the Engle and Granger cointegration test demonstrated that there is a correlation between time series, therefore the Model was evaluated through the fully modified least-Squares Method (FMOLS), The Method demonstrated that all study variables have statistical significance and that financial liberalization has a positive impact on Malaysian Economic growth during the study period. Moreover, Granger's causality test showed that in the short term, there is no impact of the variables of the financial liberalization on the economic growth.
Keywords: economic growth, financial liberalization, foreign direct investment inflows, trade openness, Fully Modified Least-Squares Method (FMOLS method).
Contents
- The impact of non-banking financial markets
on economic development
Ioana Raluca ANDREI
- Causal relationship between agricultural exports
and economic growth: a diagnostic approach
Ankit CHHIKARA
Laurel PASRICHA
- COVID-19 and CAPM: a tale of reference dependence
with the pharma stocks’ returns
Paritosh Chandra SINHA
Pooja AGARWAL
- Statistical analysis on population ageing
Mădălina-Gabriela ANGHEL
Dragoș-Alexandru HAȘEGAN
- An impulse response function analysis
of the impact of modern payment technologies
on money demand in Nigeria
Tersoo IORNGURUM
Godwin NWAOBI
- Statistical analysis on the evolution
of economic activity in Romania
Constantin ANGHELACHE
Cristian Marius RĂDUȚ
Laura CONSTANTIN
- Determinants of trade flows to Agadir Agreement countries:
gravity model three-way approach
Sadok ACHOUR
Dr. Fatima HADJI
- Case study: The impact on the Romanian State Budget
in the case of EU adoption of the CCCTB Directive
Răzvan V. BALABAN
- Public expenditure and economic development:
New evidence from the BRICS-SAARC-ASEAN region
Mohd Arshad ANSARI
Faraz KHAN
Manish Kumar SINGH
- The external debt burden and economic growth in Africa:
a panel data analysis
Manamba EPAPHRA
William MESIET
- What explains the real exchange rate movement for the BRICS nations? With a separate analysis for Indian economy
Hariom ARORA
- Export supporting strategy,
distance to frontier and economic growth
Birgit KIRSCHBAUM-BEHL
- The impact of taxation on growth:
the case of Greece
Athanasios ANASTASIOU
Vasiliki KREMASTIOTI