The relationship between economic growth and employee provident fund: An empirical evidence from Malaysia

Business and Economic Horizons Pub Date : 2018-01-01 DOI:10.15208/BEH.2018.18

Sallahuddin Hassan, Zalila Othman, Zalina Mohd Mohaideen

引用次数: 1

Abstract

Over the years, Malaysia has progressively accelerated its economic development, thanks to the adherence to high rates of domestic savings and investment. Of which, the Employees Provident Fund (EPF) is one of the schemes that caters for the private sector workers. Specifically, this paper investigates the relationship between economic growth and EPF investment in Malaysia for the period of 1970 – 2014. The model, which is derived from the Cobb-Douglas production function, is tested by econometric techniques; Johansen cointegration and Granger causality within VECM. While the EPF investment is proven statistically insignificant in the short run, there is evidence of the saving/investment-led-growth hypothesis being the long run phenomenon for Malaysia. In view of the possible over-dependence on investment funds in generalgoing forward, the policy makers are recommended to reinforce the government’s initiative in facilitating more business ventures as means to attract incoming funds, including FDI flows, towards streaming into the country.

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经济增长与雇员公积金关系:来自马来西亚的经验证据

多年来，由于坚持高国内储蓄率和投资率，马来西亚逐步加快了经济发展。其中，雇员公积金(EPF)是其中一项为私营机构雇员提供服务的计划。具体而言，本文研究了1970 - 2014年马来西亚经济增长与EPF投资之间的关系。该模型由柯布-道格拉斯生产函数推导而来，并通过计量经济学技术进行了检验;VECM中的johnson协整和Granger因果关系。虽然EPF投资在短期内被证明在统计上是微不足道的，但有证据表明储蓄/投资主导增长假说是马来西亚的长期现象。鉴于今后可能过度依赖投资基金，建议决策者加强政府的倡议，促进更多的商业企业，作为吸引流入资金，包括外国直接投资流入该国的手段。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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Business and Economic Horizons ECONOMICS-

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