UPSI Digital Repository (UDRep)
|
|
|
Abstract : Universiti Pendidikan Sultan Idris |
The main objective of this study is to investigate the factors that affect the Malaysian industrial production sector (IPS) by using the ARDL bounds testing methodology. The analysis is conducted by applying the time series data for the 19702020 period. From the ARDL results, all variables significantly influence Malaysian IPS in different manners for both periods; long and short runs, except the financial development (FD) variable, which insignificantly in-fluences IPS. This final result was verified by the ECM estimate, indicating the presence of long-and short-run relationships between IPS and its factors. Although the FD sector does not directly play a significant factor in stimulating Malaysian IPS growth, policymakers must revise their policies to enhance the role of the financial and banking sector in strengthening the IPS performance in the country. This revision can be done by running good financial services to fund and motivate investors to construct new IPS schemes and then enhance the Malaysian economy with a higher growth position in the future. 2023, Economic Laboratory for Transition Research. All rights reserved. |
This material may be protected under Copyright Act which governs the making of photocopies or reproductions of copyrighted materials. You may use the digitized material for private study, scholarship, or research. |