Malaysia is also affected by the economic crisis as it applies the door-to-door policy economy even though the crisis has started on a global platform. Therefore, the objective of this study is to see how far economic recession affects development expenditure, domestic investment, and foreign direct investment in Malaysia. Using secondary data from 1980 to 2015, unit root tests, Johansen co-integration test, Vector Error Correction Model (VECM), and Granger-causality test were carried out. The findings showed that there was a long run relationship between the economic recession and at least one independent variable while there was no short run relationship between the variables. For causal relationships, the economic recession was the cause of domestic development and investment expenditure while foreign direct investment was the cause of the recession, domestic development, and investment spending. Hence, the government must ensure economic stability by implementing various policies.
In light of a slow buildup in CO2 emissions since the recovery, this paper revisits the relationship between CO2 emissions and the US economy using a nonlinear autoregressive distributed lag model, in which the determinants are identified through an expanded real business cycle model. We find convincing evidence that CO2 emissions decline more rapidly during recessions than increase during expansions over the long run. Of all determinants considered, long-run asymmetry is fostered once vehicle miles traveled is controlled. This calls for a greater attention to public transportation development and vehicle miles traveled tax for slowing down stock buildup of CO2 emissions during good times.
We examined preferences for different forms of causal explanations for indeterminate situations. Background: Klein and Hoffman distinguished several forms of causal explanations for indeterminate, complex situations: single-cause explanations, lists of causes, and explanations that interrelate several causes. What governs our preferences for single-cause (simple) versus multiple- cause (complex) explanations?