Subsidy and export: Malaysian case

This paper examines the long-run relationship between subsidies and export for the case of Malaysia using annual data from 1976 to 2010 and cointegration test. The results show that the subsidies significantly influence export in the long-run. This support the argument by the non-neo-classical economists’ propagation that export promotion requires a pro-active government role in the economy. This study has shed some lights that subsidy may not be detrimental to an economy.Subsidies; Export; Cointegration

Productivity and efficiency performance of the Malaysian life insurance industry

This study aflempts to measure the productivity of the life insurance industry by employing the non-parametric Malmquist Index approach. The finding shows that despite the productivity growth in the insurance industry, it is relatively low compared to the real economic growth experienced by Malaysia. Like the manufacturing sector, the future growth of this industry would depend on its ability to compete efficiently. Being able to provide service in an efficient way would be an important source of comparative advantage under the era of globalization. The results also suggest that both technical efficiency and technical progress contribute to the overall productivity growth of the industry

Use of dichotomous choice contingent valuation method to value the Manukan Island, Sabah

This study presents the application of dichotomous choice contingent valuation method (CVM) to value outdoors-recreational resources in Manukan Island, Sabah. Both the logit and probit models are used to analyze the primary data obtained through personal interview. The maximum likelihood estimates of this model show that income and price are significant variables in determining one is willingness to pay (WfP). The WTP figure derived from the model shows that it is much higher than present fees charged to the visitors. This study has also estimated the revenue that could be derived is the fees were charged according to the WTP framework

On the Long-Run Monetary Neutrality: Evidence from the SEACEN Countries

This paper tests the long run neutrality (LRN) and long run superneutrality (LRSN) propositions using annual observation from 10 member countries of the South East Asian Central Banks (SEACEN) Research and Training Centre. The Fisher and Seater (1993) methodology is applied to do the task. Special attention has been given in identifying the number of unit root and cointegrating vector, as a meaningful LRN (LRSN) test is critically depends on such properties. Empirical results reveal that LRN can be deviated from the case of Asian developing economies. In particular, monetary expansion seems to have long run positive effect on real output in the economies of Indonesia, Taiwan and Thailand. However, LRSN is neither fail or not addressable in our study.Neutrality and superneutrality of money; sequential unit root test; SEACEN

Some Empirical Evidence on the Quantity Theoretic Proposition of Money in ASEAN-5

This study examines the international evidence on long-run neutrality (LRN) of money based on low frequency data from five emerging ASEAN economies, namely, Indonesia, Malaysia, the Philippines, Singapore, and Thailand, using a nonstructural reduced-form bivariate ARIMA model proposed by Fisher and Seater (1993). Empirical evidence shows that the classical proposition cannot be rejected with respect to real export except for Thailand. However, the LRN test results are not robust to changes in money supply in countries under study with respect to real output. The narrow monetary aggregate seems to have greater impact on Indonesia, Malaysia, and Thailand economic activities as compared to the other two countries.Long-run neutrality of money; ARIMA model; ASEAN

Intellectual capital in Malaysian hotel industry: A case study of Malacca

Intellectual capital is recognised as a crucial strategic asset that provides organisations with a competitive edge and sustainable growth in a cutthroat business environment. There is an increasing comprehension that intellectual capital is critical to organisational performance, this is still an emerging area of inquiry in tourism industry in Malaysia. Therefore, this study was undertaken with the aim to demonstrate the impact of intellectual capital on the organisational performance of hotel industry operating in Malacca, Malaysia. Six components of intellectual capital were used in the study. A total of 193 individuals were involved in this study to test the proposed research hypotheses. The results of multiple regression analysis demonstrated that four out of seven research hypotheses were supported. This study will extend the understanding of the concept and applications of intellectual capital in hotel industry in Malaysia. Moreover, this study will be a milestone for the potential researchers to conduct their further studies in hotel industry

Survey Evidence on the Rationality of Business Expectations: Implications from the Malaysian Agricultural Sector

The rational expectations hypothesis (REH) serves as an appealing mechanism in forming expectations compared to that of extrapolative or adaptive frameworks because of its consistency with the basic principles of maximizing behavior. This argument is particularly true as the basic idea of REH maintains that expectations in an uncertain world are formed under assumptions where no systematic errors and information are fully utilized. However, empirical findings from the present study showed diverse evidence of rationality in business operational forecasts formed by Malaysian agriculture firms, as capital expenditure expectations were found to be irrational but gross revenue expectations were supportive of the REH proposition. This implies that the survey of business forecasts may not work well in reflecting the true business outlook, specifically in value-related operational forecasts, which in turn would directly influence investment decisions as well as the capital budgeting process.Rational Expectations Hypothesis; Unbiasedness Test; Non-serial Correlation Test; Weak-form Efficiency Test

Productivity and Efficiency Performance of the Malaysian Life Insurance Industry

This study attempts to measure the productivity of the life insurance industry by employing the non-parametric Malmquist Index approach. The finding shows that despite the productivity growth in the insurance industry, it is relatively low compared to the real economic growth experienced by Malaysia. Like the manufacturing sector, the future growth of this industry would depend on its ability to compete efficiently. Being able to provide service ill all efficient way would be an important source of comparative advantage under the era of globalization The results also suggest that both technical efficiency and technical progress contribute to the overall productivity growth of the industry

Productivity and efficiency performance of the Malaysian life insurance industry

This study attempts to measure the productivity of the life insurance industry by employing the non-parametric Malmquist Index approach. The finding shows that despite the productivity growth in the insurance industry, it is relatively low compared to the real economic growth experienced by Malaysia. Like the manufacturing sector, the future growth of this industry would depend on its ability to compete efficiently. Being able to provide service in an efficient way would be an important source of comparative advantage under the era of globalization. The results also suggest that both technical efficiency and technical progress contribute to the overall productivity growth of the industry

An Application Of Kaldor’s Growth Laws In South East Asia: A Time Series Cross Section Analysis

This study revisits Kaldor’s growth laws and provides some empirical views of the sources of South East Asian growth for the last 30 years. In particular, the results suggest that manufacturing output growth is prominent in influencing the total output growth as compared to other sectors in the process of growth and development in Indonesia, Malaysia, Philippines, Singapore and Thailand. Besides, it is found that the growth of the manufacturing sector will lead to the transference of labour from other sectors in the economy which raises productivity in these sectors. However, the agricultural and service sectors do not offer the same scope for the division of labour and specialisation within the sectors themselves. Various factors have been postulated as factors manufacturing output growth. It is suggested in this study that the governments of South East Asian should encourage the transfer of resources from agriculture to industry in order to move into higher stage of growth and development