This study empirically examines the relation between the domestic fuel prices with the ten disaggregated economic sectors in Malaysia with the spanning of data from 1990:Q1 to 2007:Q4. We found that only three sectors (agriculture, trade and other services sectors) are cointegrated with the fuel price and fuel price does Granger cause these sectors. Despite the evidence of non-cointegrated in most of the economic sectors, fuel price able to influence these sectors over a longer period. Policy recommendation from this study includes the utilization of the renewable energy (RE) as a strategic plan is the long-term solution due to the high dependency and increasing demand of energy. While energy prices have experienced some correction in response to signs of slower global growth, sufficient government enforcement and support need to be established to facilitate successful renewable energy implementation in Malaysia.
This paper is concerned with the time series behaviour of the cross border trade flows between Sarawak (East Malaysia) - West Kalimantan (Indonesia) conducted through regional port of Tebedu custom district with the main focus on the long run sustainability of Sarawak trade deficits. Cross border trade activity has gain much attention due to the dynamic linkages of this unique regional economic activity on industry, investment and employment, yet the study on long-run relationships of cross border trade flows have been largely overlooked. By employing the three stages of modern time series econometric technique, the research found significant long run cointegration relationship for the bilateral trade flows as well as support for the strong form of sustainability condition, suggesting that Sarawak-West Kalimantan bilateral trade is on the sustainable path in governing their trade flows performance. This suggests that the macroeconomic policies of Sarawak and West Kalimantan have been effective in bringing exports and imports into a long run equilibrium.
The objective of this paper is to examine the influence of poverty, unemployment and GDP on entrepreneurship. Time series data for 31 years was collected from various official sources for the analysis. Vector autoregressive (VAR) framework was adopted to systematically capture the rich dynamic of multiple time series. Other tests conducted were unit root test, Johansen and Juselius (1990) co-integration test, Granger causality and dynamic model analysis beyond the sample. It was found that poverty and GDP influence entrepreneurship negatively, while unemployment influences entrepreneurship positively. The paper reveals the presence of both opportunity and necessity driven entrepreneurs in the country. There is a need for the government to revisit the existing policy on micro, small and medium enterprises (MSMEs) to adequately address the problem of the poor and unemployed by availing them with the opportunity to engage in entrepreneurship. Future study should consider mitigating the effect of frequent entry and exit from entrepreneurship in their data to correctly predict the effect of entrepreneurship on the economy.
The objective of this paper is to examine the influence of poverty, unemployment and GDP on entrepreneurship. Time series data for 31 years was collected from various official sources for the analysis. Vector autoregressive (VAR) framework was adopted to systematically capture the rich dynamic of multiple time series. Other tests conducted were unit root test, Johansen and Juselius (1990) co-integration test, Granger causality and dynamic model analysis beyond the sample. It was found that poverty and GDP influence entrepreneurship negatively, while unemployment influences entrepreneurship positively. The paper reveals the presence of both opportunity and necessity driven entrepreneurs in the country. There is a need for the government to revisit the existing policy on micro, small and medium enterprises (MSMEs) to adequately address the problem of the poor and unemployed by availing them with the opportunity to engage in entrepreneurship. Future study should consider mitigating the effect of frequent entry and exit from entrepreneurship in their data to correctly predict the effect of entrepreneurship on the economy. ; Celem artykułu jest zbadanie wpływu ubóstwa, bezrobocia i PKB na przedsiębiorczość. Dla potrzeb tej analizy zgromadzono dane za okres trzydziestu jeden lat wykorzystując rozmaite oficjalne źródła. Zastosowano model wektorowej autoregresji (VAR), aby systematycznie ująć bogatą dynamikę wielokrotnych serii czasowych. Inne przeprowadzone testy obejmowały jednostkowy test pierwiastka, test ko-integracji Johansena i Juseliusa (1990), Model przyczynowości Grangera i analizę dynamicznego modelu wykraczającą poza próbkę. Okazało się, że ubóstwo i PKB negatywnie wpływają na przedsiębiorczość, natomiast bezrobocie ma na nią wpływ pozytywny. Artykuł ujawnia zarówno obecność przedsiębiorców wykorzystujących możliwości, jak i tych z konieczności w badanym państwie. Istnieje potrzeba, aby rząd dokonał rewizji swojej polityki dotyczącej mikro-, małych i średnich przedsiębiorstw aby odpowiednio zareagować na problem ludzi biednych i bezrobotnych, dając im możliwość zaangażowania się w przedsiębiorczość. Przyszłe badania powinny zająć się zminimalizowaniem efektu częstego rozpoczynania i kończenia działalności przedsiębiorczej, tak by prawidłowo przewidzieć wpływ przedsiębiorczości na gospodarkę.
The capability of monetary aggregates to generate stable links with fundamental economic indicators verifies the effectiveness of monetary targeting. However, traditional monetary aggregates become flawed when financial reforms take place. As official monetary aggregates fail to maintain stable links with crucial economic indicators in Malaysia, monetary targeting has been substituted by interest rate targeting. Therefore, Divisia monetary aggregates, which are considered superior to their simple-sum counterparts are used in the investigation for Malaysia. The findings imply that Divisia M2 money demand is stable and capable of generating appropriate coefficients with correct signs for the variables included. Thus, Divisia money has shed new light on the usefulness of monetary targeting in formulating monetary policy in Malaysia.
In this paper, we examine stationarity properties of data on budget deficits for a cluster of twenty-seven developing countries (D-27) for the period spanning 1970 to 2003. It has been argued in the literature that this statistical property correlates well with the economic property of sustainability of the budget deficit. The univariate unit root tests indicated a non-stationary process of I(1) with the exception of three countries. However, the non-stationary properties were rejected when the panel unit roots procedures were adopted. Since panel procedures provide greater power, the statistical evidence favors stationarity. This in turn suggests that budgets deficits in our sample of countries are sustainable, an important conclusion with many real world economic implications. The conflict between single country results and panel results suggests that univariate procedures may lead to the wrong conclusions.
PurposeThis research attempts to assess the role of green intellectual capital components with respect to the sustainability business performance of manufacturing SMEs in Malaysia.Design/methodology/approachEmpirical data for this study were gathered through structured questionnaire forms, from entrepreneurs, managers, and decision-makers of manufacturing, small and medium enterprises. A sample of 500 individuals from 170 manufacturing SMEs from Malaysia was participated. Partial Least Squares (PLS) Structural Equation Modelling technique was used to examine the impact of green intellectual capital on the sustainability business performance of SMEs.FindingsResults expressed that green intellectual capital has a positive significant impact on the sustainability business performance of manufacturing SMEs in Malaysia. Results also posited that the three components such as green customer capital, green technological capital, and green spiritual capital were supported while green human capital, green structural capital, and green social capital were not supported.Practical implicationsThe present study inspects how entrepreneurs, managers, and policymakers should practice the concept of green and sustainability to attain maximum benefits from green intellectual capital to increase the sustainability business performance of their organizations.Originality/valueThis pioneering research produces a comprehensive theoretical model of green intellectual capital, supporting the current literature where similar works have been yet. This theoretical model will guide entrepreneurs and managers of SMEs to measure green intellectual capital in SMEs. Despite the significant contribution, this study offers insights to researchers, academicians and practitioners to mitigate environmental destruction and to achieve the sustainable business performance of SMEs in Malaysia and developing countries.
