Reinvestigating the effect of trade openness towards government size, government expenditure and exchange rate: evidence from Malaysia / Nurul Syafika Abdul Malik and Rosaieni Saiful Arulchelvan

Abdul Malik, Nurul Syafika and Saiful Arulchelvan, Rosaieni (2013) Reinvestigating the effect of trade openness towards government size, government expenditure and exchange rate: evidence from Malaysia / Nurul Syafika Abdul Malik and Rosaieni Saiful Arulchelvan. [Student Project] (Unpublished)

Abstract

This paper investigates the short run and long run relationship between the effect of trade openness towards government size, government expenditure and exchange rate in Malaysia. Data for the variables were obtained from World Development Indicators (WDI) from 1988 to 2010. Based on our analyses, we had come out we two model that is trade openness(TO) = - government size(GS)+ exchange rate(ER) and the other model is trade openness(TO) = government expenditure(GDP)=exchange rate(ER).However the study discovers that second model have long run relationship instead of first model. Other than that, we identify that government expenditure is variable that cause trade openness and exchange rate. A few policies implication can be recommended such as government may increase trading activity such as import and export activity. Beside that the government right now needs to implement the economic transforming program more effectively. We also recommend that Malaysia should involve in more trade agreement beside FTA and WTO. The trade agreement that Malaysia can involve is maybe European Union that promise more opportunity to do the trade. In order to make sure this program success Malaysia government have to get cooperation from the private sector and not rely on the policy that implement by the government only.

Metadata

Item Type: Student Project
Creators:
CreatorsID Num. / Email
Abdul Malik, Nurul Syafika2011877404
Saiful Arulchelvan, Rosaieni2011287676
Subjects: H Social Sciences > HB Economic Theory. Demography > Consumption. Demand (Economic theory)
H Social Sciences > HD Industries. Land use. Labor > Economic development. Development economics. Economic growth
Divisions: Universiti Teknologi MARA, Melaka > Bandaraya Melaka Campus > Faculty of Business and Management
Programme: Bachelor of Business Administration (Hons) International Business (BA246)
Item ID: 30492
Uncontrolled Keywords: Trade openness; Government size; Government expenditure; Exchange rate
URI: http://ir.uitm.edu.my/id/eprint/30492

Download

[img] Text
30492.pdf

Download (309kB)

Fulltext

Fulltext is available at:
UNSPECIFIED

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year