Per capita output convergence across Asian countries: Evidence from covariate unit root test with an endogenous structural break

Matsuki, Takashi

doi:10.1016/j.econmod.2019.03.005

Cited by 7 publications

(1 citation statement)

References 55 publications

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“…The study of relationship between per capita income and output convergence is an important indicator for long-run policy forecasting. The work of Matsuki (2018) is aiming in that direction by adopting that convergence of output between two countries hold if the long run forecasts approach zero and uses covariate (ADF) unit root to enhance the estimation power of the tool, and investigate any convergence of series between one country to another, and furthermore to account for endogenous structural breaks in the series using the same method and noted significant growth factors regardless of the strong evidence of per capita income convergence in the Asian region and highlighted that its more evident in countries like Hong Kong, Singapore and Taiwan, while Malaysia, Indonesia and India are relatively lower.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Fiscal Policy on GDP Per Capita: Evidence From Malaysia

İsmail

Houssein

2020

IJPPSW

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This study investigated the relationship between income per capita and government spending in Malaysia using annual data spanning from 1980-2018. Auto-regressive distributed lag (ARDL) and VAR-differenced model (VECM) was employed to examine the relationship between income per capita, government consumption, and government expenditure on education. Inflation is used as a control variable in the model. The result concluded that government consumption, government expenditure in education, and inflation have a unidirectional short-run causal effect on income per capita. In the long run, income per capita has a negative relationship with government consumption spending, while has a positive relationship with government expenditure in education. Government expenditure in education is crucially important in Malaysia and it should be continued to give more opportunities for Malaysians to get a better education and as a result, get a better job and improve the standard of living.

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Section: Literature Reviewmentioning

confidence: 99%