KESAN SUBSIDI TERHADAP OUTPUT: PENDEKATAN ARDL

This study presents empirical effects of subsidies on malaysia's economic growth by using two set data of subsidies, namely end users and inputs subsidies. econometric analyses show three important evidences. first, in the short-run, the government's decision to give out subsidy is influenced by national output, and vice versa. second, the findings proved the existence of bidirectional relationship between non-subsidy public expenditure and output. third, non-subsidy government expenditure is also influenced by the subsidies and expenditure of subsidies to consumers in the long-run. finally, there is no significant cointegration between aggregate government spending and output in the long-run, which reflecting the important role of private sector in stimulating the nation development programs.