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Jurnal Ekonomi Malaysia

47 (1) 2013 155 – 162

Testing Nonlinear Convergence in Malaysia
Ujian Penumpuan Tidak Linear di Malaysia

Faculty of Economics and Management
Universiti Putra Malaysia
43400 UPM Serdang
Selangor
Malaysia

muzafar@econ.upm.edu.my

Faculty of Economics and Business
Universiti Malaysia Sarawak
94300 Kota Samarahan Sarawak
MALAYSIA

amdaffizah@feb.unimas.my

Faculty of Economics and Business
Universiti Malaysia Sarawak
94300 Kota Samarahan Sarawak
MALAYSIA

ksliew@feb.unimas.my

Labuan School of International Business and Finance
Labuan International Campus
Universiti Malaysia Sabah
P.O. Box 80594
87015 F.T. Labuan
MALAYSIA

kianping@ums.edu.my

Abstract

The purpose of the present paper is to examine income convergence in Malaysia by applying the nonlinear unit root
test presented by Kapetanios et al. (KSS 2003) and extended by Chong et al. (CHLL 2008) to permit the test of long-run convergence and catching-up hypotheses. The KSS-CHLL nonlinear unit root is applied to the test of nonlinear convergence between thirteen states with respect to Wilayah Persekutuan, the richest state of Malaysia, for the period of 1965 to 2003. Generally, the results suggest that out of the thirteen states, Kedah, Negeri Sembilan, Perak, Perlis and Selangor support the long-run convergence hypothesis; while Johor, Kelantan, Melaka, Pahang and Penang suggest catching-up. Lastly, Sabah, Sarawak and Terengganu indicate income divergence from Wilayah Persekutuan.

Keywords

Income convergence; Malaysia; nonlinear convergence; nonlinear unit root test; states GDP
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Bibliography

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Habibullah, , Affizzah Awang Marikan, , senliew, , & Lim, (2013). Testing Nonlinear Convergence in Malaysia. Jurnal Ekonomi Malaysia, 47(1), 155–162.

@article{Habibullah2013testing,
  title={Testing Nonlinear Convergence in Malaysia},
  author={Habibullah, Muzafar and Affizzah Awang Marikan, Dayang and senliew, venus and Lim, kian},
  journal={Jurnal Ekonomi Malaysia},
  volume={47},
  number={1},
  pages={155—162},
 

year={2013},
}

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