The dynamic synergies between agriculture output and economic growth in Malaysia. International Journal of Economics and Finance, 5 (4). pp. 61-70. ISSN 1916-9728 (2013)
Abstract
This paper investigates the dynamic synergies between agriculture sector and economic growth in Malaysia throughout historical economic policy adjustments spanning from 1970 to 2010. From the analysis, the contribution of agriculture sector output to the Malaysian economy has been decreasing despite several agriculture-led economic growth policies that have been implemented, including the very recent New Economic Model (NEM). Specifically, we employ Johansen-Juselius (1990) cointegration test and reveals that agriculture and economic growth were found to be moving together in the long run. Moreover, we examine the direction of causality between agriculture output and economic growth within the vector error-correction model (VECM). The test shows that both agriculture and economic growth have no causality direction at least in the short run but there exist a bi-directional causality movement in the long run. From this empirical testing and policy analysis, we can suggest that policy makers should pay attention to the holistic and sustainable development of agriculture
sector into their policy modelling in promoting sustainable economic growth.
| Item Type: | Article |
|---|---|
| Keywords: | agriculture economics, economic dynamism, economic sustainability, cointegration and causality analysis |
| Taxonomy: | By Subject > Plantation & Agrotechnology > Plantation and Agribusiness Management |
| Local Content Hub: | Subjects > Plantation & Agrotechnology |
| Depositing User: | Mohd Ismail Zanudin |
| Date Deposited: | 07 Oct 2020 09:52 |
| Last Modified: | 07 Oct 2020 09:54 |
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