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International Economics
Article . 2014 . Peer-reviewed
License: Elsevier TDM
Data sources: Crossref
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Assessment of the global financial crisis effects on energy consumption and economic growth in Malaysia: An input–output analysis

Authors: Hussain Ali Bekhet; Tahira Yasmin;

Assessment of the global financial crisis effects on energy consumption and economic growth in Malaysia: An input–output analysis

Abstract

Abstract During the last three decades, dependence on foreign trade has increased sharply in Malaysia, causing the Malaysian economy to become increasingly export-oriented. The global financial crisis (GFC) affected Malaysia׳s economic growth tremendously in the fourth quarter of 2008, and policy makers subsequently adopted effective measures to avoid future crises. The government unveiled two stimulus packages; the first—totalling RM7 billion (US$1.9 billion), accounting for 1.04% of the GDP—was launched in November 2008 while the second—totalling RM60 billion (US$16.2 billion), or 9% of the GDP—was launched in March 2009. The objectives of this paper are to (1) discuss the influence of the GFC on Malaysia׳s trade and energy consumption and (2) analyse the effect of the Malaysian government׳s stimulus plans for economic revival using an input–output model. The results indicate that the drop in exports caused by the GFC led to a 13% decrease in GDP and a 16% reduction in energy consumption. The stimulus packages led to 1.83% and 4.64% increases in economic growth and energy consumption, respectively.

Keywords

Global financial crisis;Energy consumption;Economic growth;Input–output model;Malaysia, jel: jel:C67, jel: jel:F43, jel: jel:G01, jel: jel:N75, jel: jel:O23, jel: jel:Q43

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    Top 10%
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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
19
Top 10%
Top 10%
Top 10%
bronze