An empirical assessment of the impact of Development Financial Institutions (DFIs) on Malaysian economy

This paper aims to investigate the importance of Development Financial Institutions (DFIs) as a significant component of the financial system and their contributions towards promoting and supporting economic development process in Malaysia. We investigated the topics from both conceptual and empiric...

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Main Author:	Islam, Mohd Aminul
Format:	Article
Language:	English
Published:	Research Academy of Social Sciences 2015
Subjects:	HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/47327/ http://irep.iium.edu.my/47327/ http://irep.iium.edu.my/47327/1/IJFE_Published.pdf

id	iium-47327
recordtype	eprints
spelling	iium-473272018-10-16T01:18:50Z http://irep.iium.edu.my/47327/ An empirical assessment of the impact of Development Financial Institutions (DFIs) on Malaysian economy Islam, Mohd Aminul HG4001 Financial management. Business finance. Corporation finance. This paper aims to investigate the importance of Development Financial Institutions (DFIs) as a significant component of the financial system and their contributions towards promoting and supporting economic development process in Malaysia. We investigated the topics from both conceptual and empirical viewpoints. To analyze their development and contributions we have used total assets and the financing activities of DFIs covering the period 1980 – 2012. Total assets represent the size or development of DFIs while financing activities represent the involvement in promoting economic development. For empirical test, we utilized cointegration method to determine the relationship between per capita real income and the DFIs involvement in economic activities. The investigation revealed that since establishment, the DFIs have been playing important role towards achieving national development agenda by channeling the resources and funds in the economy to meet the demand particularly for medium and long term capital to areas and sectors deemed as strategic for national economic development plan. The empirical results showed that both the variables in the form of total assets and financing activities of DFIs have positive and statistically significant long run relationship with per capita real income suggesting that the DFIs are also important in influencing per capita income in Malaysia. Research Academy of Social Sciences 2015 Article PeerReviewed application/pdf en http://irep.iium.edu.my/47327/1/IJFE_Published.pdf Islam, Mohd Aminul (2015) An empirical assessment of the impact of Development Financial Institutions (DFIs) on Malaysian economy. International Journal of Financial Economics, 4 (4). pp. 176-184. ISSN 2310-3256 E-ISSN 2310-2942 http://www.rassweb.com/archive-details-vol-4-issue-4-ijfe/
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG4001 Financial management. Business finance. Corporation finance. Islam, Mohd Aminul An empirical assessment of the impact of Development Financial Institutions (DFIs) on Malaysian economy
description	This paper aims to investigate the importance of Development Financial Institutions (DFIs) as a significant component of the financial system and their contributions towards promoting and supporting economic development process in Malaysia. We investigated the topics from both conceptual and empirical viewpoints. To analyze their development and contributions we have used total assets and the financing activities of DFIs covering the period 1980 – 2012. Total assets represent the size or development of DFIs while financing activities represent the involvement in promoting economic development. For empirical test, we utilized cointegration method to determine the relationship between per capita real income and the DFIs involvement in economic activities. The investigation revealed that since establishment, the DFIs have been playing important role towards achieving national development agenda by channeling the resources and funds in the economy to meet the demand particularly for medium and long term capital to areas and sectors deemed as strategic for national economic development plan. The empirical results showed that both the variables in the form of total assets and financing activities of DFIs have positive and statistically significant long run relationship with per capita real income suggesting that the DFIs are also important in influencing per capita income in Malaysia.
format	Article
author	Islam, Mohd Aminul
author_facet	Islam, Mohd Aminul
author_sort	Islam, Mohd Aminul
title	An empirical assessment of the impact of Development Financial Institutions (DFIs) on Malaysian economy
title_short	An empirical assessment of the impact of Development Financial Institutions (DFIs) on Malaysian economy
title_full	An empirical assessment of the impact of Development Financial Institutions (DFIs) on Malaysian economy
title_fullStr	An empirical assessment of the impact of Development Financial Institutions (DFIs) on Malaysian economy
title_full_unstemmed	An empirical assessment of the impact of Development Financial Institutions (DFIs) on Malaysian economy
title_sort	empirical assessment of the impact of development financial institutions (dfis) on malaysian economy
publisher	Research Academy of Social Sciences
publishDate	2015
url	http://irep.iium.edu.my/47327/ http://irep.iium.edu.my/47327/ http://irep.iium.edu.my/47327/1/IJFE_Published.pdf
first_indexed	2023-09-18T21:07:21Z
last_indexed	2023-09-18T21:07:21Z
_version_	1777411022312701952

An empirical assessment of the impact of Development Financial Institutions (DFIs) on Malaysian economy

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