The Macro Effect Of Foreign Capital And Aid On The Economic Growth In Malaysia

Economic interdependence among nations of the world has become important and enormously complex.  Foreign capital and aid is an important form of economic interdependence because they are the main components of capital formation especially for the developing nation.  A significant amount of foreign capital and aid which has amounted to around $30 billion of the world’s gross domestic product, grows at an annual rate of 15 percent (higher than the economic growth rate of certain nation).  Multinational corporations in search for profits in the developing nation undertake inflow and outflow of foreign capital in the form of foreign direct investment, skills and technology. This creates internal economies of scale for the parent company and external economies of scale for its subsidiaries. Overwhelming performance of foreign capital can also create external diseconomies of scale known as “stunting effects” for the developing nation. The government of the developed countries for political and humanitarian reasons also offers foreign aid.  Foreign aid should be paired well with the stages of the economic development of a country to create increasing returns. This paper provides a critical analysis of growth in relation to foreign capital and aid in Malaysia.  The analysis is divided into two sections. The first section looks at foreign capital and aid as an independent variable while the second section looks at foreign capital and aid as the dependent variable.  Foreign capital is found to be positively correlated to economic growth and it is also highly significant compared to foreign aid which has no positive correlation and hardly contributes to Malaysia’s economic growth. Finally some policy options are recommended to improve the economic growth in Malaysia

Capital Market And The Transmission Channel Of The Monetary Policy: An Empirical Evidence On The Money View

The aim of this study is to find the relationship between the monetary transmission channels with the stock prices.  The study utilizes the monthly data from 1990 to 2001 obtained from the Kuala Lumpur Stock Exchange Report and the monthly bulletin of the Central Bank of Malaysia.  The result revealed that all the variables are non-stationary at the level form and stationary at the first difference.  The Johansen Cointegration revealed that a long-run relationship does exist for the unanticipated changes in money supply, unlike the anticipated changes in money supply that only established a short-run relationship with stock prices.  This is due to the level of monetization that is unable to eliminate the excess in the money market in the long run.&nbsp

Hubungan tabungan-pelaburan dengan moboliti modal Negara

The purpose of this research is to determine whether Malaysia has perfect capital mobility. The discussion begins by explaining the trend of domestic savings and domestic investment. Malaysia experienced inadequate capital to finance its domestic investment during the 1971-72, 1974-75, 1980-86 and 1989-95 periods. Usually deficiency of capital to finance domestic investment is solved using foreign long term capital. Whether economy depends too much on foreign long term capital, it can increase productivity and employment in the short run but in the long run, it could lead to a deficit in the balance of payment. To determine how much domestic investment is financed by domestic savings, the methodology of Feldstein-Horioka (1980), Frankel (1986), Bayoumi (1990) and Tesar (1988) is used. Further empirical test are done to determine whether the capital mobility of Malaysia is influenced by the endogenity problem and the interference of government through fiscal and monetary policies. Finally a forecasting model is formulated. This is done by finding the short run and the long run equilibrium between the domestic savings and investment. The study reveals that domestic investment has a positive correlation with domestic savings. A large proportion of domestic savings is used to finance domestic investment. This means Malaysia has an imperfect capital mobility. The forecasting model formulated could not be used because a long run relationship between savings and investment could not be established using the co-integration analysis. Finally, since empirical tests prove evidence of correlation between domestic savings and domestic investment, some policies are suggested to increase the level of domestic savings in the long run

New publication: the social psychology of everyday politics

Newly published book The Social Psychology of Everyday Politics edited by Associate Professor Caroline Howarth and Dr Eleni Andreouli features chapters by PhD candidate Geetha Reddy and Dr Ilka Gleibs, and PhD candidate Sandra Obradovic and Associate Professor Caroline Howarth

The factors that influence the preparation towards retirement among Gen Y in Malaysia

Preparing for retirement is one of the most important elements of a comfortable post- retirement life. The purpose of this study is to investigate the factors that influence the preparation towards retirement among Gen Y in Selangor, Malaysia. In particular, this research investigated the relationship between demographic variables, attitude, subjective norms, perceived behavioral control, individual differences, and preparation towards retirement. This study used a convenience sampling method and involved Gen Y who are aged between 24 and 41 years old. Questionnaires were used as an instrument in this study. All the data was gathered from 384 respondents through an online survey. The questionnaire included the demographic profile of respondents and variable-related questions. This study uses the TPB as its main overarching theory, as well as life cycle hypothesis, symbolic interaction theory and prospect theory to frame its exploratory conceptual framework that explains the retirement preparation. The structural equation model predicts that attitudes, perceived behavioral control, and individual differences are positively correlated with preparation towards retirement among Gen Y, while demographic variables and subjective norms have no positive correlation. As a result of this study, Gen Y and other parties involved will realize that early preparation is crucial to sustaining after retirement. This research will benefit future researchers, government, insurance industries, and investment companies in gaining a better understanding of the factors that influence the preparation towards retirement. Finally, the thesis discusses the implications of the study to theory and practice, limitations, and recommendations for future research

Attitude towards retirement and financial preparation, perception of civil servants

Monetary Economics: Issues and Challenges provides the insights of monetary economics. The book would enable readers to understand the latest development in the banking sector. The latest development covers Islamic finance, retirement planning tools and Bank Negara’s Reserve Requirement Policies. The book would be a need for students in the area of finance and for investors to keep themselves updated on the latest development related to monetary issues

A Comparison of The Weak-form Efficiency of The Asean Stock Markets Before and During the Covid-19 Pandemic

This paper aims to examine the weak-form efficient market hypothesis (EMH) for the ASEAN stock markets before and during the outbreak of the COVID-19 pandemic. The pandemic is a tremendous threat to the health condition and mortality of the world population. An important prevention step undertaken was to have social distancing at different levels of strictness. The ongoing pandemic has caused some negative consequences, including businesses enduring a period of hardship and stock market declines. It seems to be expected that a recession is coming ahead and therefore some people are unwilling to invest in the stock market. On the other hand, some people are optimistic about the economy of ASEAN countries and may think that the declines in stock markets are opportunities to invest. They believe in mean reversion that the falls in stock prices are only temporary and the prices will rebound after some time. If this is true, the market is inefficient and stock prices can be predicted. Conversely, if stock price movements are random walks, shocks to prices will be permanent and prices will reach new equilibrium aftershocks. Hence the market is efficient and stock prices are unpredictable. This study analyses the movements of ASEAN stock markets’ composite indices before and during the outbreak of the COVID-19 pandemic to find out whether the markets are efficient and thus cannot be predicted. We found that some ASEAN stock markets were efficient in both periods, while some others were showing decreased or increased efficiency from the period before the pandemic to the period during the pandemic

Under the new economic model, what is the most effective mecahnism to distribute energy subsidy? a study in Sabah and Sarawak

NO ABSTRAC

Factors that influence happiness among Sabahans

The ultimate goal in economics of happiness was to improve the living conditions of people in their everyday life. The dependent variable in this study was happiness among Sabahans which was measured by the 5 point Likert scale meanwhile the independent variables were family relationship, financial situation, work, community and friends, health and government. Questionnaire from The Happiness Initiative was adapted and modified. The study involved 387 respondents chosen based on convenient sampling method. Initially, a Factor Analysis Test was conducted to investigating variable relationship and 50 respondents were questioned for pilot study. The pilot test results showed the tool was reliable and valid. This was followed by the Partial Least Squares method and a Descriptive Study was run to describe the profile of the respondents as well as the score values (mean, standard deviation) of the respondent. The validity of model had further tested using a Confirmatory Factor Analysis (CFA) to assess the magnitude of each dimension to its construct. Finally, a Structural Model Evaluation was conducted to prove the hypothesis. The findings revealed Sabahan’s happiness were found to be influenced by family relationship and work compared to financial situation, community and friends, government and health

A Study on the Potential Demand for Natural Gas as fuel among Taxi Owners in Kota Kinabalu, Sabah

The awareness on the benefits of natural gas as environmentally friendly, cheap, quality and convenient to use have an impact on the demand of Natural Gas among consumers. This study aims to identify and examine factors that influence market demand for natural gas among taxi owners in Kota Kinabalu. A total of 200 completed responses were collected in the survey. All respondents are drawn from Taxi owners’ around Kota Kinabalu City. The survey was conducted with the collaboration of Sabah Energy Corporation Sdn. Bhd. (SEC)’s Business Development & Marketing Division and West Coast Taxi Owners’ Association. SEC is a government link companies (GLC) with the main task to spearhead the development of energy particularly natural gas distribution and retailing in the State of Sabah