Growth and convergence in ASEAN: a dynamic panel approach

This study investigates the issues of convergence and economic growth in the ASEAN. Preliminary graphical observations find strong evidence of β and σ convergence after the expansion of ASEAN membership. This results support the convergence theory that poor countries in ASEAN do catch up with the rich ones. The convergence and growth effects in the ASEAN integration is estimated by using the dynamic heterogenous panel approach namely Pooled Mean Group Estimator (PMGE). The empirical evidence supports unconditional and conditional convergence hypotheses in the ASEAN5 namely Indonesia, Malaysia, Singapore, The Philippnes and Thailand, for the 1960-2004 period. The ASEAN5 tends to converge to a steady state growth rate of per capita GDP with a speed of convergence of between 1.6% and 16.6%

The Asian financial crisis and global finalcial crisis: evidence from Asean Free Trade Area

This study empirically investigates the effect of the two series of financial crisis on intra ASEAN trade. Using the gravity model, this study further examines whether the formation of the ASEAN Free Trade Area (AFTA) resulted in an increase in intra ASEAN trade for the period 1986 to 2010. From basic gravity variables, the study found that market size, population, relative endowment, distance and common border are the main determinants of bilateral trade in ASEAN. The results reveal that the Asian financial crisis in 1997-98 did trigger the intra ASEAN trade compared to the global crisis in 2007-08. Closer examination also shows that the establishment of AFTA increases trade creation in the region as most of members already removed tariff among members

The effect of language on trade: the Malaysian case.

This study empirically investigates the relationship between common language and trade by fully utilized gravity model. The model is further augmented to identify whether Malay, Chinese and English language give significant impact on Malaysian bilateral trade with her eighty trade partners over the period 1980 to 2005. The result suggests that a country that have common in language will trade more each other as it can be an important means in reducing the information cost in trade. The result also revealed that besides English as the language of trade, the Chinese language is increasingly important in Malaysian bilateral trade, particularly within Asian countries

Intra industry trade and product quality: China and eight developing countries

This study aims to measure the export product quality improvement for trade between China and eight selected developing countries: Argentina, Brazil, Chile, Egypt, South Africa, Mexico, Turkey, and the Russian Federation based on disaggregated four-digit SITC data for the two periods 2000-2004 and 2004-2008. Vertical intra-industry trade high (VIITH) is considered as high quality products. The results revealed that the highest benefits of intra-industry trade with China are for South Africa in the first period and for Egypt in the second period. The highest positive growth of high quality products during the two periods is reported for Russia in the first period and for Brazil and Argentina in the second period. In conclusion, there is a massive potential for economic cooperation between China and these three partners

Digital trade facilitation and bilateral trade in selected Asian countries

Purpose: Digital technology is gaining attention among many scholars as a way to facilitate trade. This study aims to investigate three important digital dimensions (DD), namely, digital infrastructure, digital usage and digital security on trade using selected Asian countries and 20 selected trade partners. Digital infrastructure focussed on the availability and accessibility of digital infrastructure in exporting and importing countries. The second dimension, digital usage, highlights the importance of household usage of mobile phones, broadband data and the internet. Finally, the third dimension focusses on digital security as many online transactions occur across the globe. Design/methodology/approach: The study uses the gravity model to investigate the impact of DD as tools to facilitate trade in selected Asian countries with selected trading partners between 2003 and 2017. The Hausman test is used to determine whether to use the random effect model or fixed effect model. However, for robustness, the Hausman and Taylor estimation is used to allow the time-invariant model to be included and at the same time to remove correlations between the error terms. Findings: The result of this study confirmed that having digital infrastructure is not sufficient for trade facilitation, but it must be supported with an intensity of use by businesses and consumers and be accompanied by strong internet security for trade. The study also revealed that a narrowing digital divide in terms internet users and security will be a benefit to both trade partners in a transaction through better and efficient trade facilitation. Originality/value: The study contributes to the literature in three ways. First, the classification of DD is used to identify which dimensions need to be addressed for policymakers. Most studies focussed on the first two dimensions without including security dimensions. Second, the authors estimate digital trade facilitation variables for both exporters and importers to ensure unbiased results between two trade partners. Finally, this study introduces new variables in the analysis of the digital user gap and the digital security gap as indicators for the digital divide

Innovation and productivity: evidence from firms level data on Malaysian manufacturing sector

This study aims to investigate the impact of innovative activities related to productivity among firms in Malaysian manufacturing sector, using cross section data in 2008 with the total number of observations is 7222 firms from 36 manufacturing sub-sectors. The link between R&D, innovation and productivity has been examined through a complex interaction via the structural model. The results reveal that, exportoriented firms, size of firm, type of industry and market size heavily influence the decision to engage in R&D and at the same time firm allocates some significant amount of expenditure for R&D. The result also support that exporting firms tend to innovate to enhance their product competitiveness globally and patent their products worldwide as a form of protection from imitation. In addition, the innovation activities with the support of quality labor and technology are able to trigger firm’s productivity

Export product quality between China and Asian countries

This study aims to measure the export product quality improvement for trade between China and five selected Asian countries namely, India, Malaysia, Thailand, the Philippines and Indonesia using product quality value method of Azhar and Elliott (Rev World Econ 139(3):419–439, 2006). Vertical intra-industry trade high is considered as high quality products. We examined disaggregated four-digit standard international trade classification data, for the period of 2000 to 2008. The results propose that Malaysia has the highest benefits of intra-Industry trade with China while, Philippines and India are in second and third places. Export product quality improvement of Thailand is clearly evident in the second period, where with 87.88 % growth of high quality product can be a prospective partner choice in trading for China. It is worth for China to focus on Thailand as a significant importer on high quality products

Urban health and the prevalence of non-communicable diseases in Malaysia

Introduction: Urbanisation is a key determinant of population health. Malaysia’s exemplary economic growth in the early 1990s and the consequent development and urbanisation led to significant changes in health, lifestyle and quality of life. Rising expectations, changing demographics and nutrition and disease transitions were challenges synonymous to an increasingly urban Malaysia. As the Government targets optimal population health, this paper aims to explore one of the many challenges of urbanisation, namely the prevalence of non-communicable diseases or NCDs. For the purpose of this paper, NCD is proxied by Diabetes Mellitus. Methods: This study is based the 2015 National Health and Morbidity Survey, which is a cross-sectional population-based survey, involving 30,000 respondents. Given the binomial nature of the survey variables, the multinomial Probit model was employed using the STATA statistical software. Results: Generally, age, gender and race are significant in determining health outcomes. Socioeconomically, all three variables of income, education and employment are significant. For lifestyle factors, findings show that only the weight and physically active status have a role in determining health outcomes. Finally, the urban variable is also positive and significant. Conclusion: Findings show that the prevalence of Diabetes Mellitus, is rising along with urbanisation and that there is a health penalty for the urban population and also for those who do not embrace healthy lifestyles. Additionally, other factors are equally important as urban health determinants, encompassing both the demographic and socioeconomic factors

Regional economic integration and trade in ASEAN: evidence from two episodes of financial crises

This study empirically investigates the effect of the two episodes of financial crises on ASEAN trade using the gravity model.It further examines whether the formation of the ASEAN Free Trade Area (AFTA) and ASEAN Economic Community (AEC) resulted in an increase in intra ASEAN trade for the period 1986 to 2010.This study makes a contribution to trade literature to include financial sector in the model which has been ignored from previous studies.From basic gravity variables, the results found that market size, population, relative endowment, financial sectors, distance and common border are the main determinants of bilateral trade in ASEAN.The result reveals that the AFTA and AEC did trigger intra ASEAN trade.Evidence from Asian financial crisis shows that intra ASEAN still increases during that period.However, the inclusion of financial sectors, the result is insignificant. This study reveals that the global crisis 2007/08 did distort the intra ASEAN trade

The impact of brain drain on human capital in developing countries

The debate over the effect of human capital flight on educational attainment in immigrants' source countries has received huge theoretical propositions but a few analytical approaches. This paper examines the short-run and long-run impact of skilled migration rates (brain drain) on human capital formation in migrants' source developing countries. Specifically, we revisited some empirical studies that found evidence of beneficial brain drain in migrants' source countries. Our empirical result, using school enrolments does not only disagree with theirs but also presents an insight on how human capital leakages that occur through brain drain can be counterbalanced through remittances received in the immigrants' source countries