Gairuzazmi Mat Ghani

Balance of payments constrained growth model: an examination of Thirlwall's Hypothesis using McCombie's Individual Country Method

The balance of payments constrained growth (BOP) model is tested using the McCombies cross-country and individual country test for 90 developed and developing countries for the period 1980 to 2000, and the McCombies test is extended using export elasticity. If in the long run, the growth of exports is equal to the growth of imports and the affect of prices are not statistically significant, the estimated import elasticity from time series regression should not be statistically different from the BOP implied import elasticity, this also implied that the estimated export elasticity, also should not be statistically different from the BOP implied export elasticity. However, the finding shows that for only about 45% of the countries under study the individual country test is accepted even though cross-country analysis support the BOP model. Furthermore, for some countries where its estimated and implied import elasticity are not statistically different, its estimated and implied export elasticity are statistically different and vice-versa.The balance of payments constrained growth (BOP) model is tested using the McCombies cross-country and individual country test for 90 developed and developing countries for the period 1980 to 2000, and the McCombies test is extended using export elasticity. If in the long run, the growth of exports is equal to the growth of imports and the affect of prices are not statistically significant, the estimated import elasticity from time series regression should not be statistically different from the BOP implied import elasticity, this also implied that the estimated export elasticity, also should not be statistically different from the BOP implied export elasticity. However, the finding shows that for only about 45% of the countries under study the individual country test is accepted even though cross-country analysis support the BOP model. Furthermore, for some countries where its estimated and implied import elasticity are not statistically different, its estimated and implied export elasticity are statistically different and vice-versa.

RETURNS TO EDUCATION AND WAGE DIFFERENTIALS IN MALAYSIA

The main objective of this study is to estimate the effects of education on earnings of Malaysians. To achieve the objective, a Mincerian earning function has been estimated using Malaysia’s Household Income Survey 2009. Apart from considering levels of qualification, factors such as age, marital status, ethnicity, occupational types and geographical locations have been considered in the estimations. The results show that the rates of return in Malaysia are high and positive, especially at the upper secondary and university education levels. Male workers, on average, received 40.3% higher than their female counterparts, holding other factors constant. There is also significant evidence of wage differential attributable to regional/urban-rural locations in Malaysia. By occupational activities, our estimates suggest that employers received the highest income, followed by those in public service, private sector, and then self-employed workers. Wage differential in Malaysia is also explained by ethnicity.

An empirical analysis of factors that determine poverty among the beneficiaries of Pakistan Poverty Alleviation Fund

This study aims to examine the determinants of poverty among microcredit beneficiaries in Pakistan Poverty Alleviation Fund.,The study is based on a nationwide survey of microcredit beneficiaries of Pakistan Poverty Alleviation Fund. Using the national poverty line, this study classified borrowers into the poor and the non-poor. A Tobit model was estimated to examine the determinants of poverty among the borrowers.,The model was found to fit the data well and six out of the ten specified independent variables are found to be statistically significant.,The results of the study can be helpful in fully characterizing poverty dynamics and in policy formulation in using microcredit to reduce poverty.,The paper is the first to examine the determinants of poverty among Pakistan Poverty Alleviation Fund recipients.