Financial Development and Economic Growth in Malaysia

By James B. Ang

© 2009 – Routledge

208 pages

Purchasing Options:
Paperback: 9780415596152
pub: 2010-08-15
US Dollars$54.95
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Hardback: 9780415467261
pub: 2008-11-21
US Dollars$158.00
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About the Book

This book is concerned with the role of financial intermediation in economic development and growth in the context of Malaysia. Using an analytical framework, the author investigates the Malaysian economy from 1960 onwards to examine how far financial development has progressed in the course of economic development, and whether it has been instrumental in promoting economic growth.

A significant improvement in the Malaysian financial system, coupled with rapid economic growth and a rich history of financial sector reforms, makes Malaysia an interesting case study for this subject. The author shows that some government interventions seem to have impacted negatively on economic growth, whereas repressionist financial policies such as interest rate controls, high reserve requirements and directed credit programmes seem to have contributed positively to financial development. The analysis concludes that financial development leads to higher output growth via promoting private saving and private investment.

Shedding light on the evolutionary role of financial system and the interacting mechanisms between financial development and economic growth, this book will be of interest to those interested in economic and financial development, financial liberalization, saving behaviour and investment analysis and Asian Studies.

Table of Contents

1. Introduction 2. Finance and Development 3. The Malaysian Economy and its Financial System 4. Data, Variable Construction and Estimation 5. Financial Deepening and its Determinants 6. The Patterns and Determinants of Private Savings 7. The Determinants of Private Investment 8. The Saving and Investment Nexus 9. Financial Intermediation and Economic Growth 10. Conclusion

About the Author

James B. Ang is Lecturer in the Department of Economics, Monash University, Australia. His research interests are Finance and Development, Financial Liberalization, Macroeconomics and the Southeast Asian Economies.

About the Series

Routledge Studies in the Growth Economies of Asia

The aim of this series is to publish original, high-quality work by both new and established scholars on all aspects of the growth economies of Asia.

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Subject Categories

BISAC Subject Codes/Headings:
BUS027000
BUSINESS & ECONOMICS / Finance
BUS035000
BUSINESS & ECONOMICS / International / General
BUS069020
BUSINESS & ECONOMICS / International / Economics
SOC008000
SOCIAL SCIENCE / Ethnic Studies / General