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The Growth and Stabilization Properties of Fiscal Policy in Malaysia

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  • Mr. Sohrab Rafiq

Abstract

This paper examines the size of the fiscal multiplier values generated in Malaysia. The results show that a government spending shock leads to broad positive economic effects. Although, the effectiveness of fiscal policy alters across macroeconomic states. The estimates show that since the Asian financial crisis the medium- and long-run effect of fiscal policy spending has declined. Some of this is down to greater credit availability and less investment spending.

Suggested Citation

  • Mr. Sohrab Rafiq, 2013. "The Growth and Stabilization Properties of Fiscal Policy in Malaysia," IMF Working Papers 2013/149, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2013/149
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    Cited by:

    1. Hong, Law Chee, 2016. "Sectoral Impact of Fiscal Policy in Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 50(1), pages 81-98.
    2. Mr. Sohrab Rafiq, 2016. "When China Sneezes Does ASEAN Catch a Cold?," IMF Working Papers 2016/214, International Monetary Fund.

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