Abdul Rahim Ridzuan

Characteristic Affecting Charitable Donations Behavior: Empirical Evidence from Malaysia☆

Abstract The recent World Giving Index 2013 had shown that there is increasing rank for charitable donations in Malaysia. Generally, charities have to depend on individual donors and less on the government for fundraising in order to survive in the competition. As charities need to depend on individual donor, it is compulsory to study on the individual donor characteristics which can help to identify and describe recognizably the individual donor features. Furthermore, in Malaysia, there are limited studies on the characteristics of individual donor. Thus, this study aims is to investigate the characteristics of Malaysian charitable donors and the study followed the study on donor characteristics in Britain, Australia, Brunei and Pakistan to develop a better understanding of Malaysian donors extrinsic determinants (demographic determinants and socio-demographic determinants) and intrinsic determinants (psychographic determinants). Data is collected from the individual donors in the Central Region of Malaysia that consist of Selangor, Federal Territory of Kuala Lumpur, Negeri Sembilan and Melaka. To measure the results, factor analysis is used in the development and evaluation of test and scale. Later, logistic regression is used to analyse the relationship between variables. It is basically used when dependent variables is categorical (donor/non-donor). Findings show that age, income, education and religious factors affect the charitable donation behavior in Malaysia. Further, the research also identifies major differences between donor characteristic from Malaysia with Britain, Australia, Brunei and Pakistan. The findings indicate that the characteristics of donors differ between each country and more exploration is needed in this field.

The Export Led-Growth and FDI Led -Growth Nexus in Malaysia: Evidence from ARDL Analysis

This paper investigates the relationship between foreign direct investment (FDI) and export (X) towards Malaysias economic growth over the period 1980 to 2011. Most past empirical studies observed that both FDI and export are the important sources of economic growth especially after the countrys liberalization in 1986. The interest of this paper is to find out which determinant contributes higher for the growth by applying recent time series analysis known asAutoregressive Distributive Lag ( ARDL) approach proposed by Pesaran (2001) by modifying the standard Cobb Douglas production function. The results confirmed that determinant; FDI and export are positively correlated with higher growth and will be converge in the long run. Based on the contribut ion, export is proven to contribute more than FDI for the growth of Malaysian economy. The outcome of this analysis can give important insight to the policymaker so that Malaysia will not lose track in competing with other rising Asian countries. The lack of FDI and income received from export activities may constrain to economic growth and vice versa. Original ResearchArticle

Donor’s Expectations Toward Transparency Features in Websites of Malaysia Charity Organizations

This paper investigates the donor’s perspective on the element of transparency and accountability needed to display in the website by the charity organizations (COs) in Malaysia. This is achieved through the survey of various literatures and study undertaken concerning the foundation. The study was done based on the fact that there is a very limited study on the topic especially in Malaysia based on the context of website or Internet communication technology (ICT). Thus, this study is able to provide an insight toward the readers on the view and how it leads toward trust in donation among donor. The respondents are randomly selected, and the questionnaire is based on online survey. A total of 556 respondents are collected from this research. The ability of potential stakeholder to access organization-specific information concerning the operations of non-profit organization is important for donation decision. It is hoped by this study that the public and more importantly the foundations to see how transparency display in the COs’ website can play a crucial role in encouraging more people to donate and increase their fund. COs depend on people’s donations to continue their mission to help their beneficiaries sufficiently. A long-term goal for this study is for the foundation to see how transparency can help to create a philanthropy society, a society that practises continuous charity and philanthropy in their lives rather than just charity society and a society that elects to donate based on demand and on timely basis.

Does Performance and Transparency Matter to Individual Donors’ Giving in Malaysia?

The recently released World Giving Index (https://www.cafonline.org/PDF/WorldGivingIndex2013_1374AWEB.pdf, 2013) reports that despite the fall in the growth rate of the global economy, the average percentage of people donating continue to increase. However, nonprofit organizations (NPO) were urged to be more transparent and inform the public about their work. This concurs with concern over NPO’s impact and its subsequent effects on donor’s behaviors. With indices of donor performance abound that lead to ranking of donor allocative performance, this may influence donor behavior. As such, this paper seeks to investigate the influence of performance on charitable giving decisions by donors. Performance in NPO is complex and difficult to measure. This paper focuses on the influence of NPO’s performance on charitable decisions of individual donors in Malaysia. Individual donors were chosen since various studies identify them as one of the main contributors to charities. Online survey was conducted requesting information on respondents’ demography and psychographic. The survey also requested information from respondents on various criteria of NPO when deciding to donate. Based on the survey, performance though important is not the major consideration for individual donors when donating to NPOs.

Household Consumption, Domestic Investment, Government Expenditure and Economic Growth: New Evidence from Malaysia

This paper examines the dynamic linkages between economic growth, household consumption, domestic investment and public expenditure in Malaysia by adopting ARDL approach for the period of 1960-2010 based on Keynesian and Wagner’s law hypothesis. We have also created two dummies variables in the model to capture two major economic crises: Asian Financial Crisis 1997-1998 and Global Financial Crisis 2008-2009. The empirical result showed that there is a long run relationship exists in the model proposed. Mixed evidence is found for the short run and the variables are mostly significant for the long run elasticity. The contribution of consumption is said to be the largest followed by gross domestic investment and public expenditure. The empirical findings showed that the policies employed by the government are currently effective and help to promote growth in the long run. Moreover, the policies are also capable in sustaining the economy during recession period. The findings help to give clear pictures for the policymaker to construct suitable policies that can accelerate higher economic growth for Malaysia and achieving the target of high income country in the year 2020.

Foreign Direct Investment and Gross Domestic Investment: Evidence from Asean 5

This paper is aiming to evaluate the impact of foreign direct investment (FDI) and gross domestic investment (GDI) on the growth rate of real gross domestic per capita of the founding members of ASEAN group namely Malaysia, Singapore, Thailand, Indonesia and Philippines. By following the neo classical cum neo -liberal theories, and the dependency theory, this study maintains that the economic growth rates as one of the best proxyto measure economic development for developing countries. Time -series analyses utilizing the Autoregressive Distributive Lag (ARDL) technique were employed. The results of the ECM-ARDL for long run analysis showed that most of the coefficients in the longrun derived from Malaysia, Thailand, Singapore and Philippines are significant. These results are consistent with the Dependency, Neo -classical and neo-liberal theory. Other country in this study shows a mix evidence of relationship between their independent variables and the dependent variables.

The Linkage between Long -Run Purchasing Power Parityand CEPT scheme in ASEAN 4 before andafterGlobal Financial Crisis

This paper examines the validity of purchasing power parity (PPP) hypothesis for four founding members of the Association of Southeast Asian Nat ions (ASEAN4) with Singapore as base currency. A range of standard unit root tests and cointegration used in previous studies was applied to test long run PPP and four models were introduced based on the implementation of Common Effective Preferential Trad e (CEPT) scheme and the impact of global financial crisis. The result from the unit root test has shown that all the data are stationary at I (1). T here was no evidence of PPP detected between ASEAN4 and Singapore before the implementation of CEPT schemeusing Johansen cointegration testin model 1.However, the evidence of long -run PPP were detected between MalaysiaSingapore, Thailand-Singapore and Philippines-Singapore after the implementation of CEPT scheme for model 2 and before the global financial cri sis hits in U.S economy. Among these three countries, the strongest presence of PPP is found between Malaysia and Singapore where it carried both correctly signed and statistically significant variables.

The Impact of Foreign Direct Investment towards Carbon Dioxide Level: Pollution Havens Model for ASEAN5 Countries

This paper aims to investigate the impact of foreign direct investment (FDI) on carbon dioxide (CO2) emissions through pollution -haven hypothesis modelfor original ASEAN5 (Malaysia, Singapore, Thailand, Indonesia, and Philippines) countries by using Autoregressive Distributed Lag (ARDL) approach also known as Bound test. Annual time series data is employed for the period spanning from 1970 -2008 comprising 39 years of observation. The ARDL technique has the advantage of not requiring a specific identification of the order of the underlying data besides this technique is suitable for small or finite sample size. The results of ECM-ARDL for short run analysis are indicated that in the Philippines case, most of the coefficients in the short run are significant except for gross national income per capita (GNI). In the short run, GNI has showed positively relationship with the CO2 while the manufacturing value added (MV) has negative relationship with the CO2.Other countries in this study; Thailand and Indonesia show a mix evidence of relationship between their independent variables and the dependent variable. Moreover, the results of the long run elasticities show that for GNI, MV, and FDI have significantly and positively influenced the level of CO2 in Indonesia and Thailand. As compared to Philippines, only FDI inflow is positively influence the level of CO2 in this country. ASEAN5 countries should carefully monitor the level of CO2 in the nation as they received more FDI inflow in the countries.

Monetary Instruments and Inflation: Econometric Analysis Based on Malaysia Economy

The relationship between inflation and monetary policy is widely discussed in the research paper. The increase in inflation is seen as an indicator of a country’s constant growth. However, it is crucial for the government to keep the countrys inflation under control by adopting the right policies such as monetary policy. This paper is assessing the impact of monetary instrument in controlling inflation rates in Malaysia over the period of 1970 to 2010. The analysis begins by testing the unit root test to determine the stationarity of the data. All the variables are found to have a long run relationship based on the Johansan Juselius cointegration test. From the causality test, it was also found that there is an existence of unidirectional causality for all variables of CPI, interest, reserve and money supply for Malaysia. The findings of this paper have some handy proposals that should help the policymaker to develop a plan of action for the development of this nation. First, the authority must constantly monitor the level of reserve requirement in the country.

Reinvestigating the Export-Led Growth Evidence in Malaysia: Bound Test Approach

International trade is an important contributor to Malaysias economic growth and development. Malaysias trade policy is to pursue efforts towards creating a more liberalizing and fair global trading environment. While Malaysia continues to accord high priority to the rule-based multilateral trading system under the World Trade Organisation (WTO), Malaysia is also pursuing regional and bilateral trading arrangements to complement the multilateral approach to trade liberalisation. Recently, Malaysia has successfuly established free trade agreement (FTA) with her close trading partner such as Japan, Pakistan, New Zealand, India, Chile and Australia. Knowing the importances of export contribution towards the gross domestic product (GDP) of the country, this paper aims to reinvestigates the evidence of Export-Led-Growth Hypothesis by using recent time series techniques known as Bound test. The data used in this paper is annually data ranged from 1980 to 2011. By modifying the standard Cobb-Douglas production function, we found out that export plays a significant role in contributing growth to the Malaysia’s economy. Besides, labor and capital are also vital for the development of the nation. We recommend few policies based on the result gained from this paper.