An Examination of Malaysia's Structural Breaks Vis-À-Vis Japan and the USA

Pak. J. Commer. Soc. Sci. 2012 Vol. 6 (2), 231-241

11 Pages Posted: 29 Mar 2017

See all articles by Md Wahid Murad

Md Wahid Murad

University of South Australia; University of South Australia

Md. Hasan

Universiti Utara Malaysia; Green University of Bangladesh

Muhammad Shoeb-Ur-Rahman

Lincoln University; University of Dhaka

Md. Mahmudul Alam

Universiti Utara Malaysia

Date Written: 2012

Abstract

This paper primarily examines whether Malaysia has had experienced any structural breaks in comparison with its main two trading partners, namely the USA and Japan in 1970s, 1980s, 1990s and 2000s. It also discusses the implications of such structural breaks to Malaysia’s economic globalization at the international level. Using some econometric and statistical tools such as the ADF test, transformed lag equation, Chow Breakpoint test, and CUSUM test, the study reveals that only at 1% level of significance income ratio of Japan and Malaysia has had experienced structural breaks in terms of GDP during the periods 1980s, 1990s, and 2000s. In respect of GNI, the study reveals that only at 5% level of significance their income ratio has had experienced structural breaks during these periods. The study further reveals that income ratio of the USA and Malaysia does not have any structural break both in respect of GNI and GDP.

Keywords: Structural breaks, Income ratio, Economic globalization, Income Convergence

Suggested Citation

Murad, Md Wahid and Hasan, Md. and Shoeb-Ur-Rahman, Muhammad and Alam, Md. Mahmudul, An Examination of Malaysia's Structural Breaks Vis-À-Vis Japan and the USA (2012). Pak. J. Commer. Soc. Sci. 2012 Vol. 6 (2), 231-241 , Available at SSRN: https://ssrn.com/abstract=2942579

Md Wahid Murad

University of South Australia ( email )

North Terrace
Adelaide, South Australia 5001
Australia
5001 (Fax)

HOME PAGE: http://https://people.unisa.edu.au/Wahid.Murad

University of South Australia ( email )

City West Campus
North Terrace
Adelaide, South Australia 5001
Australia
+61 8 8302 0384 (Phone)

HOME PAGE: http://https://people.unisa.edu.au/Wahid.Murad

Md. Hasan

Universiti Utara Malaysia ( email )

Sintok, Kedah
Malaysia

Green University of Bangladesh ( email )

220/D, Begum Rokeya Sarani
West Kafrul, Dhaka 1207
Bangladesh

Muhammad Shoeb-Ur-Rahman

Lincoln University ( email )

PO Box 85084
Ellesmere Junction Road/Springs Road
Lincoln, 7647
New Zealand
+64226905019 (Phone)

University of Dhaka ( email )

University of Dhaka
Ramna, Dhaka, 1000
Bangladesh
+8801684711143 (Phone)

Md. Mahmudul Alam (Contact Author)

Universiti Utara Malaysia ( email )

UUM Sintok
Sintok, Kedah 06010
Malaysia

HOME PAGE: http://experts.uum.edu.my/Researcher_Info.aspx?nopkj=5252

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