Browsing by Author Habibullah, Muzafar Shah

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Showing results 36 to 55 of 61
  • the_less_developed_states_converging_richer_state_malaysia_baharom et al.pdf.jpg
  • Journal Article


  • Authors: Habibullah, Muzafar Shah; Din, Badariah H.; Sanusi, Nur Azura; Abdul Hamid, Baharom (2018)

  • The present paper addresses the question whether the less developed states, namely; Kedah, Kelantan, Pahang, Perlis, Sabah, Sarawak and Terengganu are converging with the richer state of Selangor, using unit root test and cointegration approach to test for income convergence for the period 1970-2013. We tested convergence on per capita real GDP for the states involved and the results suggest that the less developed states have been converging to the state of Selangor for the period under study. We also identify two convergence clubs among the states. In this respect, the state government has an important role to play in enhancing growth by continuously providing stable economic enviro...

  • linkages_between_education_expenditure_economic_growth_evidence_CHINDIA_baharom.pdf.jpg
  • Journal Article


  • Authors: Kaur, Harpaljit; Abdul Hamid, Baharom; Habibullah, Muzafar Shah (2014)

  • This paper examines the relationship between education expenditure and economic growth in China and India by employing annual data from 1970 to 2005. This study utilizes multi econometric tools such as the Johansen-Juselius (1990) co-integration test, Ordinary Least Square (OLS) method, Dynamic Ordinary Least Square (DOLS), Vector Error Correction Model (VECM) as well as variance decomposition to obtain a robust and consistent result. The findings indicate that there exists a long run trending relationship between income level (Gross Domestic Product per capita (GDPpc) and education expenditure in both China and India. In the long run, a unidirectional causal relationship could be det...

  • malaysia_us_trade_question_sustainability_correct_policy_baharom_2015.pdf.jpg
  • Industry Article


  • Authors: Abdul Hamid, Baharom; Habibullah, Muzafar Shah (2015-09-30)

  • The on-off-on again-off again Malaysia-US Free Trade Agreement (MUSFTA) is a proposed treaty between Malaysia and the United States of America. Initial negotiations, in fact started way back in 2005 and as all other Free Trade Agreements (FTAs), the treaty aims to liberalise each other markets to parties of the agreement and directly encourage trade between the two countries. Malaysia has a commendable and enviable economic growth and development. Our macroeconomic policies have always been designed to create a more liberalized and fair international trade environment. Though Malaysia continues to accord high priority to the rule-based multilateral trading system under the World Trade...

  • marketing_effectiveness_Islamic_conventional_banks.pdf.jpg
  • Chapter in Book


  • Authors: Abdul Hamid, Baharom; Najibullah, Syed; Habibullah, Muzafar Shah (2017)

  • The study aims to address marketing effectiveness of both Islamic banks and conventional banks (CBs) by using a modified "chain-of-effect" framework. Against current literature, which is based on customer surveys, reports do not include marketing activities by the Islamic banks (IB); this study adopts a bank perspective to explore the IB's behavior in this regard. Applying fixed-effect panel regression on the quarterly data of five IBs and five CBs in Malaysia, the study aims to explore the influence of marketing efforts on performance... Available in physical copy only (Call Number: HG 3368 A6 I82Na)

  • item.jpg
  • Journal Article


  • Authors: Mohd Tahir, Hirnissa; Habibullah, Muzafar Shah; Abdul Hamid, Baharom (2016)

  • This paper examines the causality between military expenditures and economic growth for twenty selecteddeveloping countries. In this paper we test for Granger long-run causality employing the Panel Error-Correction Model (ECM) framework using annual data for the period 1970 to 2005. Military expenditure is measured using the logarithm of the ratio of military expenditures to gross domestic product (milex); while economic growth is proxied by the logarithm of real GDP per capita (rgdppc). Causation (as well as cointegration) is inferred from milex to rgdppc, in a panel setting using the Pooled Mean Group (PMG) estimator proposed by Pesaran et al. (1999) when the Error-Correction (ECM) ...

  • item.jpg
  • Chapter in Book


  • Authors: Habibullah, Muzafar Shah; Abdul Hamid, Baharom; Din, Badariah H.; Furuoka, Fumitaka (2017)

  • Theory argues that as long as the shadow economy is of sufficient size, the leakage or loss of tax revenue through tax evasion will also be substantial. In this chapter, we provide new estimates of the size of the shadow economy in Malaysia for the period 1971-2013. Further, we relate the shadow economy to its determinants as measured by the misery index. This chapter reveals that the relationship between the shadow economy and financial development in Malaysia exhibits an inverted U-shaped curve. The chapter concludes that the Malaysian government should embark on programs that can reduce the size of the shadow economy, relying on its dual banking system of Islamic and conventional b...

  • pre_post_crisis_analysis_stock_price_exchange_rate_baharom_royfaizal_muzafar.pdf.jpg
  • Journal Article


  • Authors: Abdul Hamid, Baharom; Chong, Razali Royfaizal; Habibullah, Muzafar Shah (2008)

  • The furore and chaos created by the Asian financial crisis have ignited many studies on numerous subjects, and it is believed that the crisis has changed the way nations being administered and policies formed and implemented especially those regarding monetary and fiscal policies. In this study Johansen (1991) cointegration method was used and the period was divided into two sub periods, albeit pre crisis and post crisis. The results obtained are similar with a number of past literatures pointing to no long run relationship between stock price and exchange rate for both periods.

  • regional_spillovers_economic_growth_neighbouring_countries_matter_sabah_sarawak_baharom.PDF.jpg
  • Journal Article


  • Authors: Habibullah, Muzafar Shah; Awang Marikan, Dayang Affizzah; Puah, Chin Hong; Abdul Hamid, Baharom (2013)

  • The objective of the present paper is to address the question whether the economic development of the neighbouring countries, states or provinces have impacted the states of Sabah and Sarawak or vice versa. Using annual data for the period 1968 to 2003, results indicate that the growth of the state of Sarawak is affected by the growth of Brunei Darussalam, Sabah, West Kalimantan and East Kalimantan and the economy of Sabah is affected by the economies of Brunei, Sarawak and East Kalimantan.

  • item.jpg
  • Academic Proceeding


  • Authors: Ow, Wilson Chee Seong; Premagowrie, S.; Abdul Hamid, Baharom; Habibullah, Muzafar Shah (2014)

  • In recent years, globalization has brought about the importance of English language especially in developing countries. It is believed that English proficiency is integral to human capital development and economic growth. The purpose of this study is to determine the link between English language proficiency and earnings via economic growth in developing countries. The study used the percentage of English language proficiency, per capita income, foreign direct investment and unemployment to conduct an analysis on fifty-three (53) developing countries. The model was regressed cross sectionally and White standard error was employed to remove traces of heterogeneity. As expected, it is ...

  • shadow_economy_and_financial_sector_development_in_Malaysia_muzafar_badariah_yusof_baharom.pdf.jpg
  • Journal Article


  • Authors: Habibullah, Muzafar Shah; Din, Badariah H.; Saari, M. Yusof; Abdul Hamid, Baharom (2016)

  • This paper explores the link between the shadow economy and financial sector development in Malaysia for the period 1971-2013. We calculate the size of the shadow economy by using the modified-cash-deposits-ratio approach recently developed by Pickhardt and Sardia (2011). We investigate the contention made by Blackburn et al. (2012) that financial sector development can mitigate shadow economy, higher level of financial sector development lead to lower level of shadow economy. Our results show that there is a non-linear long-run relationship between shadow economy and financial sector development in Malaysia, an inverted-U shape curve, suggesting that at lower (higher) level of financ...

  • stock_market_aggregate_consumption_asymmetry_evidence from_malaysia_mansor.pdf.jpg
  • Journal Article


  • Authors: Ibrahim, Mansor H.; Habibullah, Muzafar Shah (2010)

  • Purpose – The purpose of this paper is to analyze the influences of real share prices on aggregate consumption for Malaysia with the focus on whether there is asymmetry in the long-run relation of the two variables. Design/methodology/approach – The paper specifies aggregate consumption to depend on real income and real share prices. Alternatively, imposing long-run budget constraint, the paper specifies the relation between aggregate consumption and real share prices as ratio to real income. Then, it applies an asymmetric cointegration and error correction modeling. Findings – The cointegration tests indicate the presence of a long-run relation between consumption-income ratio ...

  • Tax_evasion_and_financial_development_in_ASEAN 5_muzafar_baharom_badariah_mansor.pdf.jpg
  • Journal Article


  • Authors: Habibullah, Muzafar Shah; Abdul Hamid, Baharom; Din, Badariah H.; Ibrahim, Mansor H. (2017)

  • The estimated total tax evasion as reported by the Tax Justice Network in 2011 is in the excess of USD3.1 trillion or about 5.1% of world's GDP. Tax evasion is a crime and tax revenue losses have negative consequences to the government ability to fueled economic growth by providing enough public infrastructure and other services. In this study we have estimated the share of tax evasion to the official economy for five ASEAN economies, namely; Indonesia, Malaysia, the Philippines, Singapore and Thailand for the period 1980-2013. Tax evasion was calculated from the estimated size of the shadow economy using the modified-cash-deposits-ratio (MCDR) approach suggested by Pickhardt and Sard...

  • Tax_evasion_tax_burden_and_economic_development_in_Asean_5_baharom.pdf.jpg
  • Journal Article


  • Authors: Din, Badariah H.; Habibullah, Muzafar Shah; Abdul Hamid, Baharom (2018)

  • Tax evasion is a crime. Recent estimates registered the loss of tax revenue amounting to USD3.1 trillion or 5.1% of world's GDP. Tax revenue losses have negative consequences to the government ability to fuelled economic growth by providing enough public infrastructure and other services. In this study we have estimated the share of shadow economy to the official economy for five ASEAN economies, namely; Indonesia, Malaysia, the Philippines, Singapore and Thailand for the period 1980-2013 using the MIMIC model. The indexes of the shadow economy from the MIMIC model were then used to calculate the loss in tax revenue as a result of the presence of the shadow economy. We then test the h...

  • testing_service-led_investment-led_hypothesis_evidence_chindia_baharom.pdf.jpg
  • Journal Article


  • Authors: Abdul Hamid, Baharom; Habibullah, Muzafar Shah; R. C., Royfaizal (2009-03-01)

  • This study examines the meaningful relationship between economic growth, and service sector contribution and domestic investment in two major Asian economies, namely India and China. Autoregressive Distributed Lag (ARDL) bounds testing procedure is employed to analyze the impact of the selected variables namely (1) contribution by the service sector, (2) (4) domestic investment on economic growth and vice versa. The period of interest is 1960-2005 using annual data. The empirical results demonstrate that for the case of India, there is (1) a unidirectional causality from domestic investment to economic growth and (2) from economic growth to services. As for China, only unidirectional ...

  • item.jpg
  • Journal Article


  • Authors: Abdul Hamid, Baharom; Habibullah, Muzafar Shah; Mohamed, Azali; Chow, Li Shen (2011)

  • This study examines the fundamental determinants of the real exchange rate in Thailand during the period of 1976-2006, using the Bounds testing approach suggested by Pesaran et al. (2001). Three main fundamentals are used to identify the RER, namely, the productivity differentials (proxied by GDP per capita), the net foreign assets position (proxied by the current account balance, CAB), and the real interest rate differential (RIR). The empirical results demonstrate stable long run relationship between the real exchange rate (RER) and GDP per capita (GDPPC), real interest rate (RIR) and current account balance (CAB).

  • item.jpg
  • Journal Article


  • Authors: V. Rasiah, R. Ratneswary; Habibullah, Muzafar Shah; Abdul Hamid, Baharom (2015)

  • This study seeks to investigate the economic antecedents of happiness by employing the Mean Group (MG), Pooled Mean Group (PMG) and the Dynamic Fixed Effects (DFE) estimators to analyse a set of macro panel data on selected OECD countries for 40 years from 1973 to 2012. The results show evidence that income and unemployment have a favourable impact on happiness, while happiness is hindered by inflation and income inequality. Surprisingly, the study revealed that institutional quality is not a significant antecedent of happiness. It is worth noting the importance of the reference group theory or relative theory of happiness and the set-point theory of happiness in explaining the role p...

  • item.jpg
  • Academic Proceeding


  • Authors: V. Rasiah, R. Ratneswary; Habibullah, Muzafar Shah; Abdul Hamid, Baharom (2015)

  • This study examines the long-run relationships and short-run dynamic interactions between stock returns and its determinants comprising of GDP per capita, inflation and happiness, over the period 1973 to 2012. The study applies the dynamic heterogenous panel estimation techniques of Mean Group (MG), Pooled Mean Group (PMG) and the Dynamic Fixed Effects (DFE) to analyse a set of macro panel data on selected OECD countries to establish the possible causal relations between these variables. The results of this study show evidence that income has a favourable impact on the stock market, while inflation dampens stock returns. Interestingly, the study also revealed that happiness is not sig...

Browsing by Author Habibullah, Muzafar Shah

Jump to: 0-9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
or enter first few letters:  
Showing results 36 to 55 of 61
  • the_less_developed_states_converging_richer_state_malaysia_baharom et al.pdf.jpg
  • Journal Article


  • Authors: Habibullah, Muzafar Shah; Din, Badariah H.; Sanusi, Nur Azura; Abdul Hamid, Baharom (2018)

  • The present paper addresses the question whether the less developed states, namely; Kedah, Kelantan, Pahang, Perlis, Sabah, Sarawak and Terengganu are converging with the richer state of Selangor, using unit root test and cointegration approach to test for income convergence for the period 1970-2013. We tested convergence on per capita real GDP for the states involved and the results suggest that the less developed states have been converging to the state of Selangor for the period under study. We also identify two convergence clubs among the states. In this respect, the state government has an important role to play in enhancing growth by continuously providing stable economic enviro...

  • linkages_between_education_expenditure_economic_growth_evidence_CHINDIA_baharom.pdf.jpg
  • Journal Article


  • Authors: Kaur, Harpaljit; Abdul Hamid, Baharom; Habibullah, Muzafar Shah (2014)

  • This paper examines the relationship between education expenditure and economic growth in China and India by employing annual data from 1970 to 2005. This study utilizes multi econometric tools such as the Johansen-Juselius (1990) co-integration test, Ordinary Least Square (OLS) method, Dynamic Ordinary Least Square (DOLS), Vector Error Correction Model (VECM) as well as variance decomposition to obtain a robust and consistent result. The findings indicate that there exists a long run trending relationship between income level (Gross Domestic Product per capita (GDPpc) and education expenditure in both China and India. In the long run, a unidirectional causal relationship could be det...

  • malaysia_us_trade_question_sustainability_correct_policy_baharom_2015.pdf.jpg
  • Industry Article


  • Authors: Abdul Hamid, Baharom; Habibullah, Muzafar Shah (2015-09-30)

  • The on-off-on again-off again Malaysia-US Free Trade Agreement (MUSFTA) is a proposed treaty between Malaysia and the United States of America. Initial negotiations, in fact started way back in 2005 and as all other Free Trade Agreements (FTAs), the treaty aims to liberalise each other markets to parties of the agreement and directly encourage trade between the two countries. Malaysia has a commendable and enviable economic growth and development. Our macroeconomic policies have always been designed to create a more liberalized and fair international trade environment. Though Malaysia continues to accord high priority to the rule-based multilateral trading system under the World Trade...

  • marketing_effectiveness_Islamic_conventional_banks.pdf.jpg
  • Chapter in Book


  • Authors: Abdul Hamid, Baharom; Najibullah, Syed; Habibullah, Muzafar Shah (2017)

  • The study aims to address marketing effectiveness of both Islamic banks and conventional banks (CBs) by using a modified "chain-of-effect" framework. Against current literature, which is based on customer surveys, reports do not include marketing activities by the Islamic banks (IB); this study adopts a bank perspective to explore the IB's behavior in this regard. Applying fixed-effect panel regression on the quarterly data of five IBs and five CBs in Malaysia, the study aims to explore the influence of marketing efforts on performance... Available in physical copy only (Call Number: HG 3368 A6 I82Na)

  • item.jpg
  • Journal Article


  • Authors: Mohd Tahir, Hirnissa; Habibullah, Muzafar Shah; Abdul Hamid, Baharom (2016)

  • This paper examines the causality between military expenditures and economic growth for twenty selecteddeveloping countries. In this paper we test for Granger long-run causality employing the Panel Error-Correction Model (ECM) framework using annual data for the period 1970 to 2005. Military expenditure is measured using the logarithm of the ratio of military expenditures to gross domestic product (milex); while economic growth is proxied by the logarithm of real GDP per capita (rgdppc). Causation (as well as cointegration) is inferred from milex to rgdppc, in a panel setting using the Pooled Mean Group (PMG) estimator proposed by Pesaran et al. (1999) when the Error-Correction (ECM) ...

  • item.jpg
  • Chapter in Book


  • Authors: Habibullah, Muzafar Shah; Abdul Hamid, Baharom; Din, Badariah H.; Furuoka, Fumitaka (2017)

  • Theory argues that as long as the shadow economy is of sufficient size, the leakage or loss of tax revenue through tax evasion will also be substantial. In this chapter, we provide new estimates of the size of the shadow economy in Malaysia for the period 1971-2013. Further, we relate the shadow economy to its determinants as measured by the misery index. This chapter reveals that the relationship between the shadow economy and financial development in Malaysia exhibits an inverted U-shaped curve. The chapter concludes that the Malaysian government should embark on programs that can reduce the size of the shadow economy, relying on its dual banking system of Islamic and conventional b...

  • pre_post_crisis_analysis_stock_price_exchange_rate_baharom_royfaizal_muzafar.pdf.jpg
  • Journal Article


  • Authors: Abdul Hamid, Baharom; Chong, Razali Royfaizal; Habibullah, Muzafar Shah (2008)

  • The furore and chaos created by the Asian financial crisis have ignited many studies on numerous subjects, and it is believed that the crisis has changed the way nations being administered and policies formed and implemented especially those regarding monetary and fiscal policies. In this study Johansen (1991) cointegration method was used and the period was divided into two sub periods, albeit pre crisis and post crisis. The results obtained are similar with a number of past literatures pointing to no long run relationship between stock price and exchange rate for both periods.

  • regional_spillovers_economic_growth_neighbouring_countries_matter_sabah_sarawak_baharom.PDF.jpg
  • Journal Article


  • Authors: Habibullah, Muzafar Shah; Awang Marikan, Dayang Affizzah; Puah, Chin Hong; Abdul Hamid, Baharom (2013)

  • The objective of the present paper is to address the question whether the economic development of the neighbouring countries, states or provinces have impacted the states of Sabah and Sarawak or vice versa. Using annual data for the period 1968 to 2003, results indicate that the growth of the state of Sarawak is affected by the growth of Brunei Darussalam, Sabah, West Kalimantan and East Kalimantan and the economy of Sabah is affected by the economies of Brunei, Sarawak and East Kalimantan.

  • item.jpg
  • Academic Proceeding


  • Authors: Ow, Wilson Chee Seong; Premagowrie, S.; Abdul Hamid, Baharom; Habibullah, Muzafar Shah (2014)

  • In recent years, globalization has brought about the importance of English language especially in developing countries. It is believed that English proficiency is integral to human capital development and economic growth. The purpose of this study is to determine the link between English language proficiency and earnings via economic growth in developing countries. The study used the percentage of English language proficiency, per capita income, foreign direct investment and unemployment to conduct an analysis on fifty-three (53) developing countries. The model was regressed cross sectionally and White standard error was employed to remove traces of heterogeneity. As expected, it is ...

  • shadow_economy_and_financial_sector_development_in_Malaysia_muzafar_badariah_yusof_baharom.pdf.jpg
  • Journal Article


  • Authors: Habibullah, Muzafar Shah; Din, Badariah H.; Saari, M. Yusof; Abdul Hamid, Baharom (2016)

  • This paper explores the link between the shadow economy and financial sector development in Malaysia for the period 1971-2013. We calculate the size of the shadow economy by using the modified-cash-deposits-ratio approach recently developed by Pickhardt and Sardia (2011). We investigate the contention made by Blackburn et al. (2012) that financial sector development can mitigate shadow economy, higher level of financial sector development lead to lower level of shadow economy. Our results show that there is a non-linear long-run relationship between shadow economy and financial sector development in Malaysia, an inverted-U shape curve, suggesting that at lower (higher) level of financ...

  • stock_market_aggregate_consumption_asymmetry_evidence from_malaysia_mansor.pdf.jpg
  • Journal Article


  • Authors: Ibrahim, Mansor H.; Habibullah, Muzafar Shah (2010)

  • Purpose – The purpose of this paper is to analyze the influences of real share prices on aggregate consumption for Malaysia with the focus on whether there is asymmetry in the long-run relation of the two variables. Design/methodology/approach – The paper specifies aggregate consumption to depend on real income and real share prices. Alternatively, imposing long-run budget constraint, the paper specifies the relation between aggregate consumption and real share prices as ratio to real income. Then, it applies an asymmetric cointegration and error correction modeling. Findings – The cointegration tests indicate the presence of a long-run relation between consumption-income ratio ...

  • Tax_evasion_and_financial_development_in_ASEAN 5_muzafar_baharom_badariah_mansor.pdf.jpg
  • Journal Article


  • Authors: Habibullah, Muzafar Shah; Abdul Hamid, Baharom; Din, Badariah H.; Ibrahim, Mansor H. (2017)

  • The estimated total tax evasion as reported by the Tax Justice Network in 2011 is in the excess of USD3.1 trillion or about 5.1% of world's GDP. Tax evasion is a crime and tax revenue losses have negative consequences to the government ability to fueled economic growth by providing enough public infrastructure and other services. In this study we have estimated the share of tax evasion to the official economy for five ASEAN economies, namely; Indonesia, Malaysia, the Philippines, Singapore and Thailand for the period 1980-2013. Tax evasion was calculated from the estimated size of the shadow economy using the modified-cash-deposits-ratio (MCDR) approach suggested by Pickhardt and Sard...

  • Tax_evasion_tax_burden_and_economic_development_in_Asean_5_baharom.pdf.jpg
  • Journal Article


  • Authors: Din, Badariah H.; Habibullah, Muzafar Shah; Abdul Hamid, Baharom (2018)

  • Tax evasion is a crime. Recent estimates registered the loss of tax revenue amounting to USD3.1 trillion or 5.1% of world's GDP. Tax revenue losses have negative consequences to the government ability to fuelled economic growth by providing enough public infrastructure and other services. In this study we have estimated the share of shadow economy to the official economy for five ASEAN economies, namely; Indonesia, Malaysia, the Philippines, Singapore and Thailand for the period 1980-2013 using the MIMIC model. The indexes of the shadow economy from the MIMIC model were then used to calculate the loss in tax revenue as a result of the presence of the shadow economy. We then test the h...

  • testing_service-led_investment-led_hypothesis_evidence_chindia_baharom.pdf.jpg
  • Journal Article


  • Authors: Abdul Hamid, Baharom; Habibullah, Muzafar Shah; R. C., Royfaizal (2009-03-01)

  • This study examines the meaningful relationship between economic growth, and service sector contribution and domestic investment in two major Asian economies, namely India and China. Autoregressive Distributed Lag (ARDL) bounds testing procedure is employed to analyze the impact of the selected variables namely (1) contribution by the service sector, (2) (4) domestic investment on economic growth and vice versa. The period of interest is 1960-2005 using annual data. The empirical results demonstrate that for the case of India, there is (1) a unidirectional causality from domestic investment to economic growth and (2) from economic growth to services. As for China, only unidirectional ...

  • item.jpg
  • Journal Article


  • Authors: Abdul Hamid, Baharom; Habibullah, Muzafar Shah; Mohamed, Azali; Chow, Li Shen (2011)

  • This study examines the fundamental determinants of the real exchange rate in Thailand during the period of 1976-2006, using the Bounds testing approach suggested by Pesaran et al. (2001). Three main fundamentals are used to identify the RER, namely, the productivity differentials (proxied by GDP per capita), the net foreign assets position (proxied by the current account balance, CAB), and the real interest rate differential (RIR). The empirical results demonstrate stable long run relationship between the real exchange rate (RER) and GDP per capita (GDPPC), real interest rate (RIR) and current account balance (CAB).

  • item.jpg
  • Journal Article


  • Authors: V. Rasiah, R. Ratneswary; Habibullah, Muzafar Shah; Abdul Hamid, Baharom (2015)

  • This study seeks to investigate the economic antecedents of happiness by employing the Mean Group (MG), Pooled Mean Group (PMG) and the Dynamic Fixed Effects (DFE) estimators to analyse a set of macro panel data on selected OECD countries for 40 years from 1973 to 2012. The results show evidence that income and unemployment have a favourable impact on happiness, while happiness is hindered by inflation and income inequality. Surprisingly, the study revealed that institutional quality is not a significant antecedent of happiness. It is worth noting the importance of the reference group theory or relative theory of happiness and the set-point theory of happiness in explaining the role p...

  • item.jpg
  • Academic Proceeding


  • Authors: V. Rasiah, R. Ratneswary; Habibullah, Muzafar Shah; Abdul Hamid, Baharom (2015)

  • This study examines the long-run relationships and short-run dynamic interactions between stock returns and its determinants comprising of GDP per capita, inflation and happiness, over the period 1973 to 2012. The study applies the dynamic heterogenous panel estimation techniques of Mean Group (MG), Pooled Mean Group (PMG) and the Dynamic Fixed Effects (DFE) to analyse a set of macro panel data on selected OECD countries to establish the possible causal relations between these variables. The results of this study show evidence that income has a favourable impact on the stock market, while inflation dampens stock returns. Interestingly, the study also revealed that happiness is not sig...