Testing regional convergence hypothesis using time-series data: sectoral evidence
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Almost five decades, disparity in income across states in Malaysia continues to be a matter of concern. The existence of regional inequalities and the prospects that these inequalities may widen were recognized by the Malaysian government. The nine volumes of the 5-Year Malaysia Plans reflects the sincerity of the Malaysian government in eradicating if not elevating the problem of regional or states imbalances. The objective of the present study is to investigate stochastic convergence among three regions (Peninsular Malaysia, Sabah and Sarawak) in Malaysia using sectoral data. Using annual data for the period 1968 to 2003 we found that Malaysia's sectoral data exhibit strong and weak convergence between regions.
Time series data , Malaysia
Mohd Tahir, Hirnissa and Awang Marikan, Dayang Afizzah and Abdul Hamid, Baharom. (2011). Testing regional convergence hypothesis using time-series data: sectoral evidence. Journal International Economic Review, 4 (1), pp. 13-22.