Total Factor Productivity in the Malaysian Resource-Based Industries

This paper will focus on the issues of total factor productivity growth (TFPG) for both 3 and 5-digit level and the performance of resource-based industries (RBIs) in Malaysia for the period 1981-1997. By using the neoclassical Cobb-Douglas production function and traditional growth accounting methodology (Solow-residual) with time discrete Tornqvist weighted value share index, the TFPG estimation for both classifications shows an interesting pattern in terms of sign and fundamental composition. The development of RBIs during the period under study is mostly input driven (moving towards a capital intensive industry), where supply effect of unskilled labour assimilates to the underlying value added growth over time.Resource based industry in Malaysia; total factor productivity

The effects of foreign R&D and triadic patent propensity on developing economies efficiency and convergence

This research relies on the theory of endogenous growth, where the role of foreign imported capital and triadic patent propensity is assumed to endogenously determine the growth process of a group of 36 developing and emerging economies for the years 1990-2010. Our results confirm the monotonicity hypothesis from both foreign imported technology and triadic patent propensity toward technical efficiency improvement with no indication of pure TFP growth. The results indicate that initial foreign capital and initial triadic patent propensity only minimally improve the technical efficiency change for a small number of economies with nearly halve of the sample deviating from the convergence point

Total Factor Productivity in the Malaysian Resource-Based Industries

This paper will focus on the issues of total factor productivity growth (TFPG) for both 3 and 5-digit level and the performance of resource-based industries (RBIs) in Malaysia for the period 1981-1997. By using the neoclassical Cobb-Douglas production function and traditional growth accounting methodology (Solow-residual) with time discrete Tornqvist weighted value share index, the TFPG estimation for both classifications shows an interesting pattern in terms of sign and fundamental composition. The development of RBIs during the period under study is mostly input driven (moving towards a capital intensive industry), where supply effect of unskilled labour assimilates to the underlying value added growth over time

¿Es suficiente el crecimiento económico para paliar la pobreza?: Experiencia en Malasia

Malaysia’s success story has been highlighted by the remarkable social transformation and poverty reduction accompanying rapid economic growth. Some three decades ago, more than half of the population was poor, the number of illiterates was high, and the average person could only hope to live until the age of 48. The proportion of poor people is currently down to 5.6 percent, 90 percent of adults are literate, and life expectancy is up to 68 years. Although Malaysia’s population has increased from approximately 10 million in the 1960s to about 28 million in 2010, the number of poor people has dropped significantly during this period. This paper attempts to determine the empirical relationship and importance of growth for poverty reduction in Malaysia. The results show that growth explains much, but not all, about the evolution of poverty. Economic growth is necessary but not sufficient for poverty reduction, especially if the objective is rapid and sustained poverty reduction. This study proposes that if a policy’s objective is focused on poverty alleviation, poverty reduction as well as economic growth should be simultaneously taken into account as the final targetLa historia del éxito de Malasia se ha visto evidenciada por la sorprendente transformación social y la disminución de la pobreza que han acompañado al rápido crecimiento económico. Hace unos treinta años, más de la mitad de la población era pobre, las tasas de analfabetismo elevadas y el ciudadano medio sólo podía esperar llegar a los 48 años. La proporción de población pobre actualmente se ha reducido al 5,6 por ciento, el 90 por ciento de los adultos cuenta con una educación y la esperanza de vida alcanza los 68 años. Aunque la población de Malasia se ha visto aumentada de los aproximadamente 10 millones en los años 60 a los 28 millones registrados en 2010, el número de ciudadanos pobres ha decaído de forma significativa durante este periodo. Este artículo pretende determinar la relación empírica y la importancia del crecimiento en la mitigación de la pobreza en Malasia. Los resultados demuestran que el crecimiento tiene mucho que decir, aunque no todo, en la evolución de la pobreza. El crecimiento económico resulta necesario, aunque no suficiente, para paliar la pobreza, sobre todo si el objetivo es una reducción rápida y sostenida. Este estudio propone que, si el objetivo de una política se centra en paliar la pobreza, tanto la reducción de la misma como el crecimiento económico acabarán siendo parte simultáneamente del objetivo fina

Multi-Factor Crime in Malaysia, 1980 – 2013: Bounds Testing of Level Relationships and Granger Non-Causality Analysis

This study examines the relationship between criminal activities and the multi-macroeconomic factors of economic growth, unemployment, poverty, population and inflation in Malaysia from 1980 to 2013. The ARDL bounds testing of the level relationship was used to establish the long-run relation, and the Toda-Yamamoto Augmented VAR approach was used to test the short-run impact based on partial Granger non-causality analysis. Empirical results suggest that economic growth, inflation, poverty and population are significant factors affecting criminal activities in Malaysia with economic growth and poverty recording positive effects, whereas negative effects were recorded for inflation and population in the long-term. Further investigation using Granger non-causality analysis revealed that only population does Granger caused the criminal activities in the short-run. The findings provide useful information for policymakers to strengthen the existing crime-related policies in order to improve safety and security while maintaining economic sustainability in Malaysia

Multi-Factor Crime in Malaysia, 1980 – 2013: Bounds Testing of Level Relationships and Granger Non-Causality Analysis

This study examines the relationship between criminal activities and the multi-macroeconomic factors of economic growth, unemployment, poverty, population and inflation in Malaysia from 1980 to 2013. The ARDL bounds testing of the level relationship was used to establish the long-run relation, and the Toda-Yamamoto Augmented VAR approach was used to test the short-run impact based on partial Granger non-causality analysis. Empirical results suggest that economic growth, inflation, poverty and population are significant factors affecting criminal activities in Malaysia with economic growth and poverty recording positive effects, whereas negative effects were recorded for inflation and population in the long-term. Further investigation using Granger non-causality analysis revealed that only population does Granger caused the criminal activities in the short-run. The findings provide useful information for policymakers to strengthen the existing crime-related policies in order to improve safety and security while maintaining economic sustainability in Malaysia

Asymmetric effect of real exchange rate risk on foreign direct investment: Empirical evidence in ASEAN-4

This study investigates the asymmetric effect of exchange rate risk (volatility) on the real foreign direct investment (FDI) inflows in Malaysia, the Philippines, Singapore, and Thailand (ASEAN-4) using the Nonlinear Autoregressive Distributed Lag (NARDL) model. The results revealed the occurrence of a long-run asymmetric cointegration between real FDI inflows and real exchange rate risk in the Philippines, Singapore, and Thailand, but not in Malaysia. For the Philippines and Singapore, there is evidence of long-run asymmetry whereas short-run asymmetry exists for the case of Thailand. These findings imply that the asymmetric effects prove to be useful in providing essential information to the related parties on how FDI inflows react to exchange rate risks differently. Therefore, policymakers in ASEAN countries should be concerned about the asymmetric effect of the exchange rate volatility to mitigate the stylized effects of exchange rate movements on FDI inflows

Total Factor Productivity in the Malaysian Resource-Based Industries

This paper will focus on the issues of total factor productivity growth (TFPG) for both 3 and 5-digit level and the performance of resource-based industries (RBIs) in Malaysia for the period 1981-1997. By using the neoclassical Cobb-Douglas production function and traditional growth accounting methodology (Solow-residual) with time discrete Tornqvist weighted value share index, the TFPG estimation for both classifications shows an interesting pattern in terms of sign and fundamental composition. The development of RBIs during the period under study is mostly input driven (moving towards a capital intensive industry), where supply effect of unskilled labour assimilates to the underlying value added growth over time

Asymmetric effect of real exchange rate risk on foreign direct investment: Empirical evidence in ASEAN-4

This study investigates the asymmetric effect of exchange rate risk (volatility) on the real foreign direct investment (FDI) inflows in Malaysia, the Philippines, Singapore, and Thailand (ASEAN-4) using the Nonlinear Autoregressive Distributed Lag (NARDL) model. The results revealed the occurrence of a long-run asymmetric cointegration between real FDI inflows and real exchange rate risk in the Philippines, Singapore, and Thailand, but not in Malaysia. For the Philippines and Singapore, there is evidence of long-run asymmetry whereas short-run asymmetry exists for the case of Thailand. These findings imply that the asymmetric effects prove to be useful in providing essential information to the related parties on how FDI inflows react to exchange rate risks differently. Therefore, policymakers in ASEAN countries should be concerned about the asymmetric effect of the exchange rate volatility to mitigate the stylized effects of exchange rate movements on FDI inflows

Multi-Factor Crime in Malaysia, 1980 – 2013: Bounds Testing of Level Relationships and Granger Non-Causality Analysis / Dullah Mulok, Mori Kogid, Rozilee Asid, Jaratin Lily

This study examines the relationship between criminal activities and the multi-macroeconomic factors of economic growth, unemployment, poverty, population and inflation in Malaysia from 1980 to 2013. The ARDL bounds testing of the level relationship was used to establish the long-run relation, and the Toda-Yamamoto Augmented VAR approach was used to test the short-run impact based on partial Granger non-causality analysis. Empirical results suggest that economic growth, inflation, poverty and population are significant factors affecting criminal activities in Malaysia with economic growth and poverty recording positive effects, whereas negative effects were recorded for inflation and population in the long-term. Further investigation using Granger non-causality analysis revealed that only population does Granger caused the criminal activities in the short-run. The findings provide useful information for policymakers to strengthen the existing crime-related policies in order to improve safety and security while maintaining economic sustainability in Malaysia