The challenge of rural life nostalgia: barriers in redevelopment of Malay Reserve Land (MRL) in Klang Valley

The development of Malay reserve land is a nationwide issue which can be overcome through better understanding of the existing barriers. While many barriers have been examined, the challenges relating to land owner expectations and preferences has not been thoroughly examined. Using Kg Sungai Penchala in the capital city Kuala Lumpur as a case, this research used a structured interview survey of 258 respondents representing both owners and tenants. Statistical analysis demonstrates that majority of the land owners (individuals) rejected the idea to further develop the land. The land owners preferred to maintain the village status quo and they were satisfied with the current development level in the village. Only a minority of respondents agreed that the land should be developed and instead perceived that re-development of this Malay Reserve Land of Kg Sungai Penchala would be able to raise their quality of life. The restriction is much preferred by the land owners who preferred the current style of village living. Thus, immediate re-development of the area is not warranted and the preference of the land owners represents a strong barrier

Criticisms and Defences of the Balance of Payments Constrained Growth Model: Some Old, Some New

This paper assesses various critiques that have been levelled over the years against Thirlwall’s Law and the balance-of-payments constrained growth model. It starts by assessing the criticisms that the law is largely capturing an identity; that the law of one price renders the model incoherent; and that statistical testing using cross-country data rejects the hypothesis that the actual and the balance-of-payments equilibrium growth rates are the same. It goes on to consider the argument that calculations of the “constant-market-shares” income elasticities of demand for exports demonstrate that the UK (and by implication other advanced countries) could not have been balance-of-payments constrained in the early postwar period. Next Krugman’s interpretation of the law (or what he terms the “45-degree rule”), which is at variance with the usual demand-oriented explanation, is examined. The paper next assesses attempts to reconcile the demand and supply side of the model and examines whether or not the balance-of-payments constrained growth model is subject to the fallacy of composition. It concludes that none of these criticisms invalidate the model, which remains a powerful explanation of why growth rates differ