Are foreign multinationals more efficient? A stochastic production frontier analysis of Malaysia's automobile industry

This paper compares the sources of total factor productivity (TFP) growth of foreign (establishments with 51% and above foreign equity ownership) and local establishments in Malaysia’s automotive sector by applying a stochastic production frontier to a panel of 510 plants for the period 2000-2004. The results showed that TFP growth for local automobile plants was minimal at 0.63% and minimally negative at -0.27% for foreign plants. On average,over the study period, technical efficiency changes contributed positively toward TFP growth but scale efficiency changes were negative for both local and foreign establishments. Technical progress was minimally positive for local establishments and minimally negative for foreign establishments.The small size of plants and the lower share of white-collar workers were significant in explaining plant inefficiency in Malaysia’s automobile sector. A higher capital-labour ratio was positively related to plant inefficiency and this may be due to excess capacity in the automobile sector as a result of a small domestic market. Finally, foreign multinationals are significantly more efficient than locally owned plants

Data Envelopment Analysis (Dea) approach In efficiency transport manufacturing industry in Malaysia

The objective of this study was to measure of technical efficiency, transport manufacturing industry in Malaysia score using the data envelopment analysis (DEA) from 2005 to 2010. The efficiency score analysis used only two inputs, i.e., capital and labor and one output i.e., total of sales. The results shown that the average efficiency score of the Banker, Charnes, Cooper - Variable Returns to Scale (BCC-VRS) model is higher than the Charnes, Cooper, Rhodes - Constant Return to Scale (CCR-CRS) model. Based on the BCC-VRS model, the average efficiency score was at a moderate level and only four sub-industry that recorded an average efficiency score more than 0.50 percent during the period study. The implication of this result suggests that the transport manufacturing industry needs to increase investment, especially in human capital such as employee training, increase communication expenses such as ICT and carry out joint ventures as well as research and development activities to enhance industry efficiency

Penangkapan ikan oleh nelayan Negeri Sembilan: Satu kajian empirikal

The objective of this research is to identify the important factors in influencing fishing activities in Negeri Sembilan, specifically in the district of Port Dickson. The study analysed the impact of socio-economics and the environment toward the inefficiency level of the fishing activities as well as to give suggestions to improve efficiency. The Stochastic Frontier and technical inefficiency models were developed to analyse all the data. The results from 156 fishermen show that costs of fishing per trip, number of labour, and type of boat are significant toward the total of landings. Moreover, the study found that the mean of technical efficiency of fishing activities is at 76.5%. Overall, it shows that the efficiency level of fishing activities is moderate and its competitiveness should be improved continuously at the same level with development of other economic activities in this area

Technical efficiency in transport manufacturing firms: evidence from Malaysia

This study aims to identify the level of technical efficiency and the determinants of technical inefficiency for transport manufacturing firms in Malaysia for 2010 using cross-sectional data of 130 firms acquired from the Department of Statistics (DOS). Based on the stochastic frontier analysis (SFA) approach, the results of the study reveal that the average level of technical efficiency is moderate. The estimated result identifies the important determinants of technical inefficiency which are due to employee wage rates as well as the cost of information and communication technology. The fundamental implications of this study are that transport manufacturing firms need to boost motivation among employees and strengthen the network of the production market via wage increment and communication cost

Penangkapan Ikan oleh Nelayan Negeri Sembilan: Satu Kajian Empirikal

Tujuan kajian ini ialah untuk mengkaji faktor-faktor yang mempengaruhi aktiviti penangkapan ikan di Negeri Sembilan iaitu keseluruhan daerah Port Dickson. Kajian juga menilai impak sosio-ekonomi dan alam sekitar terhadap tahap ketakcekapan aktiviti penangkapan ikan dan seterusnya memberi cadangan bagi meningkatkan kecekapannya. Analisis dilakukan dengan membentuk model Stokastik Frontier tangkapan ikan nelayan dan model ketakcekapan teknikal. Keputusan kajian terhadap 156 nelayan menunjukkan kos penangkapan se trip, jumlah tenaga kerja dan jenis bot adalah signifikan di dalam mempengaruhi jumlah tangkapan ikan nelayan. Seterusnya kajian mendapati min indeks kecekapan teknikal nelayan adalah pada paras 76.5%. Ini menunjukkan secara keseluruhan bahawa tahap kecekapan dan daya saing kegiatan penangkapan ikan di negeri ini adalah sederhana dan perlu ditingkatkan selari dengan tahap pembangunan lain-lain aktiviti ekonomi di kawasan ini.

Are Foreign Multinationals More Efficient? A Stochastic Production Frontier Analysis of Malaysia’s Automobile Industry

This paper compares the sources of total factor productivity (TFP) growth of foreign (establishments with 51% and above foreign equity ownership) and local establishments in Malaysia’s automotive sector by applying a stochastic production frontier to a panel of 510 plants for the period 2000-2004. The results showed that TFP growth for local automobile plants was minimal at 0.63% and minimally negative at -0.27% for foreign plants. On average, over the study period, technical efficiency changes contributed positively toward TFP growth but scale efficiency changes were negative for both local and foreign establishments. Technical progress was minimally positive for local establishments and minimally negative for foreign establishments. The small size of plants and the lower share of white-collar workers were significant in explaining plant inefficiency in Malaysia’s automobile sector. A higher capital-labour ratio was positively related to plant inefficiency and this may be due to excess capacity in the automobile sector as a result of a small domestic market. Finally, foreign multinationals are significantly more efficient than locally owned plants.

Tourist satisfaction and loyalty: A structural equation model (SEM) analysis

This study attempts to analyze the relationship between tourist satisfaction and loyalty to the tourist destination of Taman Laut Pulau Kapas, a tourism destination.As to observe that relationship, 193 tourists have been interviewed. The interviews were carried out to get tourists’ responses relating to their satisfaction to the various aspects of tourism products, services, vacation trips, etc. A sum of 46 satisfaction detail is adduced to the tourists. The tourist’s demographic information, probability of revisiting and promoting the tourism destination upon returning from holiday are also attempted to be obtained. Here, the revisiting and promoting are indication to tourist loyalty on their holiday destination. Information from interviews will be analyzed using the Structural Equation Model (SEM) with computer package of Analysis Moment of Structural (AMOS 5.0). Survey result of all the 46 satisfaction details are grouped into four (4) groups/major variables, namely satisfaction on the whole trip, product diversification, support facilities and security. There is positive relationship between tourist satisfaction and the above mentioned variables. However, satisfaction and tourist loyalty for the Taman Laut Pulau Kapas case are found to be negatively related. Study also finds that the latent variables in this model have high Cronbach Alpha values which are at 0.88 and 0.81 respectively, and these prove that variables in the latent variables are suitable. Survey results also find that the correspondence decision value model, namely the chi square Goodness-of-Fit is not significant [χ2 (N=300, df=8) = 12.107 p>0.05], NFI correspondenceʹs index value, RFI, IFI, TLI and CFI exceed 0.90, and the RMSEA value is slightly smaller than 0.06 (RMSEA=0.051). Thus, the results confirm the measurement model reliability in structural equation model is as suggested by researchers

Kecekapan teknikal pertanian padi di Indonesia: kajian di Pulau Jawa

Kajian ini menggunakan Analisis Sempadan Stokastik (SFA) untuk menganggarkan tahap kecekapan teknikal dan menganalisis penentu ketidakcekapan teknikal dalam pertanian padi di Pulau Jawa, Indonesia. Data kajian ini adalah berdasarkan kaji selidik struktur kos pertanian padi yang dijalankan oleh Biro Pusat Statistik Republik Indonesia pada tahun 2008. Kawasan kajian terdiri daripada tiga daerah pengeluar padi di Pulau Jawa, iaitu Jawa Timur, Jawa Tengah, dan Jawa Barat. Keputusan kajian menunjukkan bahawa purata kecekapan teknikal di daerah Jawa Timur adalah 0.851. Manakala, di daerah Jawa Tengah dan Jawa Barat masing-masing adalah 0.836, dan 0.805. Pendapatan petani memberi kesan negatif dan signifikan kepada ketidakcekapan teknikal. Sebaliknya, umur petani, sumber pembiayaan dan saiz tanah memberi kesan positif dan signifikan kepada ketidakcekapan teknikal. Seterusnya, kesan pemboleh ubah lain seperti pendidikan formal, bantuan keraban dan marau bencana dan banjir ke atas ketidakcekapan teknikal adalah berbeza-beza mengikut kawasan

Nilai Ekonomi Khidmat Rekreasi Taman Pertanian Malaysia, Shah Alam

Pembangunan pesat prasarana berdekatan dengan lokasi Taman Pertanian Malaysia (TPM) di Shah Alum Selangor telah menimbulkan persoalan ekonomi normatif sama ada TPM wajar terus beroperasi bagi menjayakan matlamat asal atau ditukar kepada kegunaan alternatifsejajar dengan arus pembangunan kawasan sekeliling. Kajian ini cuba menganggar nilai ekonomi faedah rekreasi di kalangan pelancong-pelancong domestik ke TPM dengan menggunakan Kaedah Kos Perjalanan. Kajian mendapati nilai faedah bersih sebanyak RM4.33 bagi setiap lawatan per pelawat. Berdasarkan kadar diskaun sosial 10%, nilai kini faedah kasar agregat dianggar sebanyak RM8.4 juta (RM6700 per hektar) manakala nilai kini faedah bersih sebanyak RM5.5 juta (RM4345 sehektar). Dapatan nilai faedah bersih bagi setiap pelawat mencadangkan perkhidmatan rekreasi TPM yang sedia ada tidak menawarkan faedah yang tinggi kepada pengunjung. Namun, TPM berpotensi menjadi destinasi pelancongan eko-tani yang berdaya maju dalam negara dun di rantau ASEAN sekiranya dilakukan usaha-usaha pembaikan yang inovatif dun radikal, termasuk meningkatkan kecekapan pengurusun TPM.

Climatic changes and household food availability in Malaysian east coast economic region

Sustainable food security at household level is one of the emerging issues for all nations.There are several factors such as social, economic, political, demographic, natural, and livelihood strategies that causes to the vulnerability of the status of household food security.Therefore examining the vulnerability of these factors is essential to identify the reason and recognize the most vulnerable communities. This study is an attempt to study on the vulnerability of the factors of household food availability and its linkage with climatic changes in Malaysia. The study is based on primary data collected in the months of July – October, 2012 through a questionnaire survey on 460 low income households from East Coast Economic Region (ECER) in Malaysia. The samples were selected from E-Kasih poor household database, based on cluster random sampling technique. The study found that the vulnerability of the factors of household food availability has decreased statistically significantly over the last five years period in Malaysia for the factors of effectiveness of food distribution process, road and transportation facility for food distribution process, availability of expected food in the local market, sufficiency of expected food in the local market, and stability of food supply in market. The mean values of the current status of the factors of household food availability differ significantly at 1% significance level from the scenario of 5 years ago. However, most of the cases climatic issues were found less responsible for the changes of these factors. Though Malaysia is adversely affected by climatic change, the factors of food availability are not affected yet remarkably. This study suggests that the food security programs need to be integrated with climatic change adaptation programs to ensure more effective and sustainable household food security in future, especially among the poor and low income group. Moreover, a proper monitoring agency is required to ensure consistent supply of food in the rural and remote areas, especially at the time of natural calamity or off season