Hussin Abdullah

Economic growth, tourism and selected macroeconomic variables : a triangular causal relationship in Malaysia

Tourism is one of the largest and fastest growing industries in the world, which makes it a potential strategic factor for economic growth. This adds to the strong interest in the role of tourism in Malaysia’s economic growth as it is the second-largest contributor to foreign exchange earnings after manufacturing. In addition, empirical results associated with Granger causality among economic growth, tourism and exports within the neoclassical framework are inconsistent. The objectives of this study, thus, are to determine: the long-run relationship; the long-run and short-run Granger causality; and the long-run triangular Granger causality between economic growth and tourism receipts corresponding to selected macroeconomic variables such as government tourism expenditure, physical capital, education, health and exports as control variables. The long-run Granger causality in vector error correction model (VECM) shows economic growth, tourism receipts and health complement each other (bidirectional causality), while unidirectional causalities are found between government tourism expenditure, physical capital, education and exports to economic growth. In addition, enhancing physical capital, education, health, exports and government tourism expenditure precede tourism receipts; all these in turn indirectly lead to economic growth, thus witnessing triangular relationships among them. JEL Classification: C01, C32, L83, 047, O53

The impact of CO2 emissions on economic growth: evidence from selected higher CO2 emissions economies

The main purpose of this work is to analyze the impact of environmental degradation proxied by CO2 emissions per capita along with some other explanatory variables namely energy use, trade, and human capital on economic growth in selected higher CO2 emissions economies namely China, the USA, India, and Japan. For empirical analysis, annual data over the period spanning between 1971 and 2013 are used. After using relevant and suitable tests for checking data properties, the panel fully modified ordinary least squares (FMOLS) method is employed as an analytical technique for parameter estimation. The panel group FMOLS results reveal that almost all variables are statistically significant, whereby test rejects the null hypotheses of non cointegration, demonstrating that all variables play an important role in affecting the economic growth role across countries. Where two regressors namely CO2 emissions and energy use show significantly negative impacts on economic growth, for trade and human capital, they tend to show the significantly positive impact on economic growth. However, for the individual analysis across countries, the panel estimate suggests that CO2 emissions have a significant positive relationship with economic growth for China, Japan, and the USA, while it is found significantly negative in case of India. The empirical findings of the study suggest that appropriate and prudent policies are required in order to control pollution emerging from areas other than liquefied fuel consumption. The ultimate impact of shrinking pollution will help in supporting sustainable economic growth and maturation as well as largely improve society welfare.

Factors affecting performance of co-operatives in Malaysia

Purpose - – The purpose of this paper is to investigate the factors affecting co-operatives performance by focussing on the roles of its intangible assets which are in the form of intellectual capital and members’ participation. Design/methodology/approach - – Questionnaires have been distributed among co-operatives board of members of the 100 best co-operatives in Malaysia. This study used Pearson correlation and multiple regression analysis to examine the impact of intellectual capital and members’ participation on the co-operatives performance and determine the most influencing factors that affect the performance. Findings - – Results showed that there is a positive relationship between structural capital, relational capital and members’ participation with the co-operatives performance while human capital has been found to have a negative relationship. This is further supported by the findings based on the multiple regression analysis whereby all the independent variables were found to be significant expect for structural capital. Based on the findings, this study proposed a model for co-operatives’ performance which is based on its intangible assets. Practical implications - – Findings of this study would provide guidance for the co-operatives sector to improve its performance and indirectly help the government in realizing the nation economic goals. Originality/value - – This study provided a better understanding on the performance of the co-operatives by focussing on the roles of its intangible assets. Apparently, there are very limited studies on intellectual capital which is based on co-operative framework and thereby this present study would fill in the gap. In addition, due to the objective of the co-operatives which differs from other types of organization, findings of this study might provide significant contribution on the study of intellectual capital.

The Effects of Gender-Separate Human Capital Composition on Technology Transfer and Absorptive Capacity

International transfer of technology has been recognized as a major source of total factor productivity growth in the developing countries. The ability to absorb global technology is crucial in determining the extent of technology transfer in the recipient country. This paper empirically investigates the effect of gender-separate human capital level in the technology diffusion process and productivity growth in a panel of 12 developing Asian countries over the period 1970–2009. The model of logistic technology diffusion is used to measure the degree of different types of female and male education level contribution on total factor productivity growth using fixed and random effects estimators. It contributes to the growth and development literature by presenting empirical evidences on the role of gender-separate human capital composition in facilitating technology transfer process. The results show that both female and male education levels are significant in facilitating technology diffusion and TFP growth. Tertiary education based absorptive capacity has greater impact in productivity convergence while the impact of primary and secondary education is marginally lower. Thus, tertiary education is important in enhancing TFP growth and induces developing Asian to move closer to technological frontier. However, the absorptive capacity of female is greater at the low education level while male has greater absorptive capacity at high education level.