In the last two decades there has been a worldwide interest in decentralization of government in all parts of the world. There are two main objectives that we tried to achieve through this study. Firstly, we tried to examine empirically the effects of decentralization on macroeconomic stability....

The paper provides empirical evidence of an EKC – a relationship between income and environmental degradation for Portugal by applying autoregressive distributed lag (ARDL) to times series data. In order to capture Portugal’s historical experience, demographic changes, and international...

The objective of this article is to investigate the relationship between development of the financial sector and economic growth for South Africa. For this purpose, we data for 1965-2007 and set the estimation strategy under the ARDL framework. Importantly, four indicators for the financial...

This study uses quarterly data from 1980.1 to 2006.4 to explore the relationship between changes in real exchange rate and the trade balance indicators of Pakistan. Applying Auto Regressive Distributed Lag (ARDL) approach to cointegration we examine the existence of a possible long run...

In the developing world, the population is frequently faced with numerous natural, economic, institutional and market risks. Because of these uncertainties, many individuals and households experience difficult periods of unexpected reduction in income. Using panel data from the Indonesian Family...

As of late, several state governments in Malaysia have been identified as having serious difficulty in meeting their financial needs, to the extent of the government being qualified as on the verge of bankruptcy. One of the explanations put forward is that state governments have been acting...

In literature, subnational governments have been identified as being prone to fiscal profligacy. In response to this problem, some countries choose to put a limit on the borrowing capacity of the state and local governments. This is notably the case for Malaysia with the enactment of Article 111...

This paper attempts to shed light on the political economy of the Malaysian state governments’ budgetary behavior by tailoring hypotheses drawn from recent theoritical literature to the Malaysian institutional context and testing them empirically. Our main objective here is to examine whether...