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Shadow economy and financial sector development in Malaysia

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dc.contributor.authorMuzafar Shah Habibullah
dc.contributor.authorBadariah H. Din
dc.contributor.authorMohd Yusof Saari
dc.contributor.authorBaharom Abdul Hamid
dc.date.accessioned2017-03-03T03:28:08Z
dc.date.available2017-03-03T03:28:08Z
dc.date.issued2016
dc.description.abstractThis 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 financial sector development commensurate with higher (lower) level of the shadow economy. One policy implication from this study is that the financial sector can play an important role in reducing shadow economy by improving the accessibility to financing and to the credit market.en_US
dc.identifier.citationHabibullah, M. S., Din, B. H., Saari, M. Y., & Abdul Hamid, B. (2016). Shadow economy and financial sector development in Malaysia. International Journal of Economics and Financial Issues, 6(S7), pp. 181-185.en_US
dc.identifier.issn2146-4138
dc.identifier.urihttps://ikr.inceif.edu.my/handle/INCEIF/2267
dc.languageEnglish
dc.language.isoengen_US
dc.publisherEconJournalsen_US
dc.rights2016. EconJournals
dc.sourceSEDONA
dc.subjectModified-cash-deposit-ratioen_US
dc.subjectShadow economyen_US
dc.subjectFinancial sector developmenten_US
dc.subjectMalaysiaen_US
dc.titleShadow economy and financial sector development in Malaysiaen_US
dc.typeJournal Articleen_US
dlc.maintopicConventional finance
dlc.subtopicEconomics
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicConventional financeen_US
ikr.topic.subtopicConventional financeen_US
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relation.isAuthorOfPublication.latestForDiscovery219f93a8-b38f-400c-981f-6a7162e44a2f
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