Testing Nonlinear Convergence in Malaysia

Muzafar Shah, Habibullah and Liew, Venus Khim-Sen and A.M., Dayang-Affizzah and Lim, Kian-Ping (2008) Testing Nonlinear Convergence in Malaysia. MPRA Paper. pp. 1-13.

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Official URL: https://mpra.ub.uni-muenchen.de/12110/


The purpose of the present paper is to examine income convergence in Malaysia by using the nonlinear unit root test due to Kapetanios et al. (KSS, 2003) and extended by Chong et al. (CHLL, 2008) to permit the test of long-run convergence and catching-up hypotheses. We apply the KSS-CHLL nonlinear unit root for the test of nonlinear convergence between thirteen states with respect to Wilayah Persekutuan (the riches state) of Malaysia for the period 1965 to 2003. Generally, our results suggest that out of the thirteen states, only Kedah, Negeri Sembilan, Perak, Perlis and Selangor support the long-run convergence hypothesis while Johor, Kelantan, Melaka, Pahang and Penang suggest catching-up. Lastly, Sabah, Sarawak and Terengganu indicate income divergence from Wilayah Persekutuan.

Item Type: Article
Uncontrolled Keywords: income convergence,nonlinear unit root,KSS-CHLL,unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education, research, Universiti Malaysia Sarawak
Subjects: H Social Sciences > HC Economic History and Conditions
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Faculties, Institutes, Centres > Faculty of Economics and Business
Depositing User: Karen Kornalius
Date Deposited: 16 Nov 2015 02:57
Last Modified: 16 Nov 2015 02:57
URI: http://ir.unimas.my/id/eprint/9750

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