Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/109468
Authors: 
Menon , Jayant
Ng, Thiam Hee
Year of Publication: 
2013
Series/Report no.: 
ADB Economics Working Paper Series 345
Abstract: 
Private investment in Malaysia has been sluggish since the Asian financial crisis. One explanation is that the growing presence of government-linked corporations (GLCs) has been crowding out private investment. For the first time, we provide empirical evidence on the relationship between GLC presence and private investment. We find that when GLCs are dominant in an industry, investment by private firms is significantly negatively impacted. Conversely, when GLCs do not dominate an industry, the impact on private investment is not seen. To revive private investment in Malaysia, government must not only redress its growing fiscal deficit, but also expedite its program of divestment.
Subjects: 
Malaysia
private investment
government-linked corporations
crowding-out effect
JEL: 
E22
F20
F21
J78
O53
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/igo
Document Type: 
Working Paper

Files in This Item:
File
Size
513.95 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.