Return to education in Malaysia

The aim of this paper is to present a picture of return to education in Malaysia over the period from 1984 to 1997 based on earning equations model. The paper employed a set of data comprising micro-level data from the Household Income Survey (HIS) for several years during the period 1984 to 1997. The main finding of this paper is the changes in the wage differentials favouring the middle level of education (secondary level of education) workers. In general, the results show that the return for each level of qualification declined between 1984 and 1997,especially at the higher levels (diploma and degree). Interestingly, the return to education for females at low levels of education is higher than the return by males. However, at higher levels of qualification, especially for those with secondary and high school qualifications, males traditionally have a higher return compared to females workers. The results also indicated a significant gender differential, however the differences has fallen over time

Testing for multidimensional inequality in Malaysia

This paper investigates the inequality phenomenon in Malaysia under a multidimensional framework. To do so, we construct a multidimensional index of inequality based on a currently introduced method of Lugo and Decancq (2009). Our index is based on four dimensions: finance, education, standard of living and housing. Our result uncovers that while the quantum of multidimensional inequality is lower than the standard income measure, disparities on the basis of region, gender and ethnicity also form an integral part of inequality under the multidimensional framework in Malaysia

The probability to be persistent poor in Malaysia: new evidence from panel data

We examine the demographic characteristics of the poor that influence chances to continue to be poor by applying the binary response variable. It is based on a country representative micro data from two waves of panel household income survey 2004 and 2007. The results show that household’s characteristics, present economics and spatial disadvantages significantly influence the chances of continued poverty. The poor are either those with large household and few income earners from East Malaysia or those with low education level. They have higher risks to be trapped in poverty. Interestingly, gender and marital status are insignificant contributing factors. To help the disadvantage group, we propose improvement of the existing programmes and policy revisions to focus on other dimensions of poverty besides income and to address social exclusion issues

Changes in relative demand for labour in Malaysia (1984-1997) using a decompsition approach

This paper is concerned with the two main causes of wage differentials in the Malaysian labour market during the period 1984-1997. These are the impact of changes in trade patterns and technological change. The paper has employed set of data comprises micro-level data from the Household Income Survey (HIS) for several years during the period 1984 to 1997. The main finding of this paper is that changes in the relative demand for labour favour middle level of education (secondary levels of education) workers and that technological change is the main explanation for the changing pattern of employment in the Malaysian economy. The paper finds that changes in the pattern of trade have had only small effects in explaining the changes in the relative demand for labour

Disaggregated consumer prices and oil prices pass-through: evidence from Malaysia

The present paper analyzes the oil price pass-through into consumer price inflation for a developing country, Malaysia, using an augmented Phillips curve framework. The focus is on whether aggregate consumer prices and different consumer price components or sub-price indexes are related in different ways to oil price in the long run and in the short run. We find evidence for a long run relation or cointegration of the oil price with only the aggregate consumer price and food price indexes. Moreover, in the short run, the oil price changes have significant bearings on the consumer price inflation, the food price inflation, the rent, fuel and power price inflation and the transportation and communication price inflation. In addition, the short-run asymmetry in the oil price-food price inflation is also evident. Finally, we observe the neutrality of the medical care and health price index to the oil price changes. Our result that the inflationary consequence of oil price hikes is likely to work mainly through the food prices has important implications on the effects of oil price changes on the poor and policy directions to contain inflation

Trade openness and wage inequality: evidence for Malaysia

This article examines the impact of trade openness on wage inequality in Malaysia during the period 1984–1997. Malaysia has operated a very open trade regime since the 1960s and has pursued aggressive import substitution and export supporting policies. This development strategy is very different to that adopted in many other emerging economies where trade liberalisation has been associated with greater wage inequality. The aim of the present study is to examine whether Malaysia's more open approach to international trade has had a similar effect on wage inequality. The results suggest, in fact, that this is not the case

The role of labour standards in shaping migration: the ASEAN perspectives

This study attempts to investigate the role of labour standards in explaining the pattern of bilateral migration flows in ASEAN; and it is motivated by the target of ASEAN Economic Community Blueprint that aims to promote free flow of skilled labour in the region. To answer the research question, this paper used a panel data set consisting 45 countries and applied pooled ordinary least squares technique for the empirical analysis. The study proxies labour standards with four different indicators: number of strikes, average actual weekly hours orked, cases of occupational injuries, and trade union density rate. Interestingly, the analysis obtained mixed results to explain the effect of labour standards on bilateral migration flows in ASEAN countries, depending on what indicator being used to measure the level of labour standards in the empirical analysis. When the level of labour standards was represented by number of strikes and/ or average weekly hours worked, the results demonstrated that better labour standards increase the bilateral migration flows among countries selected in the analysis. Nonetheless, the migration increased when there were more cases of occupational injuries reported, which implies that better working conditions do not attract workers to move. The findings suggest that governments should review and improve the existing labour policies in order to attract immigrants, especially those high-skilled

Factors influencing fertilizer demand in developing countries: evidence from Malawi

Purpose: The purpose of this paper is to examine some factors that influence the intensity of fertilizer use in Malawi. Design/methodology/approach: The study uses Engle-Granger, Engle-Yoo three steps and autoregressive distributed lags (ARDLs) approaches to examine the long-run and the short-run dynamics among the variables using annual data from 1961 to 2006. Findings: The econometric results indicate that all the variables exert significance influence on the quantity of fertilizer demanded excluding population growth, while the results of the short-run model indicate that the responsiveness of fertilizer demand to all the variables is significant. Research limitations/implications: Although, this study has provided some helpful results in understanding the major factors responsible for low fertilizer consumption in the study but some time series data on important factors are lacking. Originality/value: The work is different from already existing literature in Malawi. The authors included subsidy and real gross domestic product to account for the effect of macroeconomic shocks and policies, which has not been accounted for by other related empirical studies. Moreover, this study used ARDLs techniques that can overcome the problem of insufficiently long time series data which is a significant contribution to the existing literature

Penggunaan IT Dalam SMEs : Kajian Kes Di Daerah Kubang Pasu

This study investigates the degree of information technology usage in small and medium enterprises in Kubang Pasu District. Enterprises with annual sale value not exceeding RM10 million and with less than 50 full time workers are classified as smallscale enterprise. Enterprise with full time workers between 51 and 150 full time workers and with annual sale between RM10 million and RM 25 million are categorized as medium scale enterprise. Twenty-two enterprises in Kubang Pasu District were chosen as the respondents of the study; but only 18 respondents gave complete responses. The analysis was based on the 18 respondents. The study also examines whether the degree of knowledge among managers influences the degree of IT usage and identifies the types of systems used by the small and medium scale enterprises in Kubang Pasu. The study also examines the types of IT plan done in an enterprise in order to improve its degree of application. The information system (IS) of measurement will used in order to measure the degree of IT usage. Moreover, the study also gives some pictures on the development in Kubang Pasu District

Relationship between Public Debt Burden and Health Expenditure in Sub-Saharan African Countries: The Role of Institutional Quality

The historically lower level of public health expenditure of sub-Saharan African (SSA) countries could be partly explained by the mounting debt burden of this region. This consumes a sizable proportion of their domestic resources to debt servicing and potentially decreases their overall budgetary allocations to various sectors in the economy and health expenditure in particular. Using the Generalized Method of Moments (GMM) approach on a sample of 43 sub-Saharan African countries, we examined the relationship between the public debt burden and health expenditure highlighting the role of institutional quality for the period 2000 – 2014. The empirical result confirms that the relationship between public debt burden and health expenditure in sub-Saharan Africa is negative. Interestingly, however, the marginal effect of the relationship between the public debt burden and health expenditure has shown that such a negative relationship turns out to be positive when the quality of the institutions is at maximum. This suggests that the relationship between the public debt burden and health expenditure in sub-Saharan Africa is a function of institutional quality.  Therefore, to minimize the negative impact of public debt on health expenditure in sub-Saharan Africa, governments should take determine stand to minimize its debt accumulation and intensify efforts toward the improvement of institutional quality in the region comprehensively