The Impact of Governance on Economic Growth in Malaysia (Kesan Governan Terhadap Pertumbuhan Ekonomi di Malaysia)

Abstract

ABSTRACT: This study uses the Autoregressive Distributed Lag (ARDL) model to examine the effect of governance on economic growth in Malaysia over the 1996 to 2018 period. In this study the standard of governance is graded as democratic and scientific. These two global governance metrics are synonymous with “voice and accountability” and “political stability and absence of violence” (WGIs). In the meantime, four WGI metrics are concerned with “government effectiveness”, “regulatory quality”, “rule of law”, and “control of corruption”. Empirical results show that the impact of democratic quality and technical quality on economic growth is significantly positive. The findings suggest that the promotion of good governance is useful in facilitating economic growth in Malaysia.

Keywords: Autoregressive Distributed Lag Model; ARDL bounds test; economic growth; governance

ABSTRAK: Kajian ini menggunakan model Autoregressive Distributed Lag (ARDL) untuk mengkaji kesan tadbir urus terhadap pertumbuhan ekonomi di Malaysia sepanjang tempoh 1996 hingga 2018. Kualiti tadbir urus dalam kajian ini diklasifikasikan sebagai kualiti demokratik dan kualiti teknikal. Kualiti demokratik berkaitan dengan “suara dan akauntabiliti” dan “kestabilan politik dan ketiadaan keganasan”, kedua-dua ini merupakan petunjuk Indikator Worldwide Governance Indicators (WGIs). Sementara itu, kualiti teknikal adalah berkait dengan “keberkesanan kerajaan”, “kualiti peraturan”, “aturan perundangan”, dan “pengendalian rasuah” adalah empat komponen indikator WGI ini. Hasil empirikal menunjukkan bahawa kesan kualiti demokratik dan kualiti teknikal terhadap pertumbuhan ekonomi adalah sangat positif. Hasil kajian menunjukkan bahawa mempromosikan urus tadbir yang baik bermanfaat untuk memudahkan pertumbuhan ekonomi di Malaysia.

Kata kunci: Model Autoregressive Distributed Lag; ujian had ARDL; perkembangan ekonomi; governan