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Government Expenditure, Manufacturing Growth, C02 emission: A Causality Analysis in Malaysia

Author

Listed:
  • Irza Hanie Abu Samah

    (School of Human Resource Development and Psychology, Faculty of Social Sciences and Humanities, Universiti Teknologi Malaysia, Johor Bahru, Malaysia,)

  • Intan Maizura Abd Rashid

    (Faculty of Business and Management, Universiti Teknologi MARA, Alor Gajah, Melaka, Malaysia)

  • Wan Ahmad Fauzi Wan Husain

    (School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis, Arau, Malaysia.)

  • Shah lskandar

    (School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis, Arau, Malaysia.)

  • Muhammad Fazlee Sham Abdullah

    (School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis, Arau, Malaysia.)

  • Mohammad Harith Amlus

    (School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis, Arau, Malaysia.)

Abstract

The main objective of the study is to explore government expenditure, C02 emission and manufacturing output in one model. These comprehensive literature reviews related to this topic of interest prove evidence upon variations towards the causality relationship that exists between government expenditure, C02 emission and manufacturing output. Most of past literatures had studied on the relationship of these variables, however separately. This study is done in order to test the relationship between government expenditure. C02 emission and manufacturing output on pollution in Malaysia. The data is secondarily obtained from The World Bank, The Eurostat, The European Environment Agency (EEA) and the international Monetary Fund (IMF) on the basis of a 39 of data collection from 2005 to 2019. The amounts of government expenditure, C02 emission and manufactu1ing output are then valued from the data usable. The study aims to analyses to whether or not do the variables hold causal to each other. This study discusses on the impacts of economic sectors on pollution the government expenditure, C02 emission and manufacturing consumption as its variables. Upon examining the study, an annual time series data covering the period of 2005 to 2019 in Malaysia were used. Models such as Augmented Dickey - Fuller (ADF) unit root test, Johansen and Juselius (1990) Co- Integration test, Vector Error Correction Model test and Granger Causality test were employed, each its own purposes. The conclusion on the findings limitation of the studies and suggestion for future references will later on be discussed in this chapter.

Suggested Citation

  • Irza Hanie Abu Samah & Intan Maizura Abd Rashid & Wan Ahmad Fauzi Wan Husain & Shah lskandar & Muhammad Fazlee Sham Abdullah & Mohammad Harith Amlus, 2021. "Government Expenditure, Manufacturing Growth, C02 emission: A Causality Analysis in Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 373-377.
    • Handle: RePEc:eco:journ2:2021-01-44
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    References listed on IDEAS

    as
    1. Aizenman, Joshua & Noy, Ilan, 2006. "FDI and trade--Two-way linkages?," The Quarterly Review of Economics and Finance, Elsevier, vol. 46(3), pages 317-337, July.
    2. Kofi Adom, Philip & Bekoe, William & Amuakwa-Mensah, Franklin & Mensah, Justice Tei & Botchway, Ebo, 2012. "Carbon dioxide emissions, economic growth, industrial structure, and technical efficiency: Empirical evidence from Ghana, Senegal, and Morocco on the causal dynamics," Energy, Elsevier, vol. 47(1), pages 314-325.
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    Cited by:

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    More about this item

    Keywords

    environmental pollution; air emission; C02 emission; Economic Growth; Malaysia;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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