Thursday, November 12, 2009

State By State GDP Data: About Time

The Department of Statistics has released state-by-state GDP data for 2005-2006, with 2007 and 2008 data to be released soon.

Two years isn't nearly enough data to look at trends or to do any kind of substantial analysis, but there are some nice nuggets in there. Check out especially Jadual 3 (warning: PDF link), which lists per capita GDP by state. Even though Selangor is the largest in terms of contribution to national GDP, it's only third in terms of income per capita, and on par with Sarawak, Labuan and Negeri Sembilan(!). So much for being developed.


  1. Thanks bro,
    I've been secretly looking for the data. I really appreciate the good work your doing here. You certainly have a lot of fans.

    This is what I call a quality blog. Anybody who reads it will gain greater knowledge and understanding.

    PS: Am going to relook at the trade elasticises concept you had introduced several weeks back.Something cropped up in my mind and your one of the first sources of reference for an old dog like me :-)

  2. Thanks, I only wish there were more data.

    One thing I forgot to mention that I find curious - current aggregate Malaysian GDP data are based on 2005 prices, yet the state data is based on 2000 prices, so it's difficult to compare directly.

    Still, it's better than nothing. I remember years ago, we had to hunt for state government budgets to figure out how individual states are doing.

    Re: trade elasticities, there isn't a real consensus, even in the literature. This says the Marsahll-Lerner condition is present, but this doesn't. This says it's present in the short run, but not in the long run.

    Wonkish note: I'm a bit puzzled why anyone would bother doing cointegration testing for the trade balance (almost always tests as stationary data) against the real exchange rate (non-stationary data). Because the trade balance is a difference operation (exports minus imports), by construction you can't prove a long term relationship. Maybe that's why I see such inconclusive results.

  3. current GDP data is also based on 2000 prices.. we've yet to employ 2005 prices

  4. Yup, you're right, mea culpa.

    I was thinking of the CPI (one more proof I'm getting old).

  5. Dear Hishamh,
    can you pl explain how private consumption expenditure(component of GDP demand side) is calulated. Would it be something like:-
    aggregate annual household income (less savings) X total no. of households

    and if so, do you use the gross national savings?
    What about business expenditures? Are they part of the private consumption expenditure too?

  6. azlan,

    I'll get back to you as soon as I've had the chance to look it up.

  7. From Chapter 14 of the UN "National Accounts: A Practical Introduction" handbook:

    "Data on final consumption of households are extrapolated from benchmark data,
    using retail trade surveys and household budget surveys. Without retail trade surveys,
    household consumption may have to be estimated as balancing items or residuals, a
    less reliable approach."

    Note that private consumption also includes consumption of non-profits (not just households), and also includes estimates of non-monetary household output.

    From Chapter 1 of the same handbook, business expenditures consists of intermediate consumption (cost of production) and value added. Value added in turn is equal to final consumption + investment + net exports.

    Gross National Savings is calculated as a residual. The sequence of calculation is available on pg 8.

  8. Hi all,

    I'm not a Malaysian (so I don't quite understand how things work here). Anyway I'm doing a student proj that requires data on growth rate of Malaysia's GDP by state. I find it weird that official statistics is only published now. Can someone pls kindly enlighten me on how was the country's GDP aggregated in the first place? Also, I found that there are state's GDP figures if you google say "Perak GDP". Are these figures reliable? They are from the state government website.

    Thank you for your help.

  9. AFAIK the figures have always been compiled, just never published at federal level.

    Each state also reports their GDP for the annual state government debates on budgets - which was the only way to get state-by-state data prior to this new initiative (see my first comment above).

    So I would take the numbers you see as reliable, especially since you won't be able to get them anywhere else.