Variations in economic growth across states in Malaysia: an exploratory analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yusniliyana Yusof ◽  
Kaliappa Kalirajan

PurposeThe study contributes to the aim of regional development policy in reducing regional disparities, by examining the spatial balance in socioeconomic development across the states of Malaysia based on composite development index (CDI). Besides, the study has attempted to understand the issues in the development gaps across Malaysian states by evaluating the factors that explain the variation in economic growthDesign/methodology/approachThis study uses three-stage least squares (3SLS) and bootstrap sampling and estimation techniques to examine the factors that explain the variations in the growth of development across the states in Malaysia. The analysis involves 13 states in Malaysia (Johor, Melaka, Negeri Sembilan, Pulau Pinang, Perak, Perlis, Selangor, Kedah, Kelantan, Pahang, Terengganu, Sabah and Sarawak) from 2005 to 2015.FindingsThe pattern in the spatial socioeconomic imbalance demonstrates a decreasing trend. However, the development index reveals that the performance of less developed states remained behind that of the developed states. The significant factors in explaining the variation in growth across the Malaysian states are relating to agriculture, manufacturing, human capital, population growth, Chinese ethnicity, institutional factors and natural resources.Research limitations/implicationsThe authors focused on Malaysian states over the period between 2005 and 2015. The authors encountered some limitations in obtaining relevant data such as international factors and technological change that might also explain the variation in economic growth as the data on these variables are not reported at the state level. Moreover, the data on GSDP by sector was only available from the year 2005. Second, the study is based on secondary data. Future studies might examine the factors that contribute to the development gap across Malaysian states through interviews or questionnaires and compare the findings with the existing results. Despite its limitations, this study contributes to the existing literature that emphasizes on spatial balance of socioeconomic in a developing country, focusing on Malaysian states.Practical implicationsThese findings provide guidance for policymakers by understanding key potential areas to reduce the disparity in economic growth across Malaysian states by understanding their impact on the growth.Originality/valueThis study employs different method of 3SLS and bootstrap sampling and estimation techniques in examining the factors that explain the variations in the growth of development across the states in Malaysia.

2018 ◽  
Vol 14 (2) ◽  
pp. 197-211
Author(s):  
Arfah Habib Saragih

Abstract: An Analysis of Local Taxes Revenue’s Effect on Human Development Index. Regional tax reform in Indonesia has been ongoing for approximately twenty years. The aim of the tax reform is to increase regional revenues from tax which will be used society’s welfare through regional development, which can be measured by Human Development Index (HDI). This study aims to analyse the effect of local tax revenue on HDI in Indonesia. Quantitative research method is used with unit of analysis of thirty-four provinces in Indonesia in 2013-2016, with a total of 134 observations. Secondary data is processed through panel data regression using random effect method. This study finds that local tax revenue has a significant positive effect on HDI. This study also finds that economic growth and unemployment rates have no significant effect on HDI, while gini ratio has a significant negative effect on HDI. Keywords: local taxes, human development index, tax reform, economic growth, gini ratioAbstrak: Analisis Pengaruh Penerimaan Pajak Daerah Terhadap Indeks Pembangunan Manusia. Reformasi perpajakan daerah di Indonesia sudah berlangsung selama kurang lebih dua puluh tahun. Tujuan dari reformasi perpajakan tersebut adalah untuk meningkatkan penerimaan daerah dari sektor perpajakan yang akan digunakan untuk kemakmuran rakyat melalui pembangunan daerah yang dapat diukur salah satunya dengan Indeks Pembangunan Manusia (IPM). Penelitian ini bertujuan untuk menguji pengaruh penerimaan pajak daerah terhadap IPM di Indonesia. Metode riset yang digunakan adalah metode kuantitatif dengan unit analisis tiga puluh empat provinsi di Indonesia pada periode 2013-2016 dengan total 134 observasi. Data sekunder diolah melalui regresi data panel dengan metode random effect. Penelitian ini menemukan bahwa penerimaan pajak daerah berpengaruh positif signifikan terhadap IPM. Temuan lain yang diperoleh dari penelitian ini adalah pertumbuhan ekonomi dan tingkat pengangguran tidak berpengaruh signifikan terhadap IPM, sedangkan rasio gini berpengaruh negatif signifikan terhadap IPM. Kata kunci: Kata Kunci: pajak daerah, indeks pembangunan manusia, reformasi perpajakan, pertumbuhan ekonomi, rasio gini


2020 ◽  
pp. 174-186
Author(s):  
A. Mahendra

This research is intended to know the influence of government expenditure on education and health sector, inflation, and poverty on human development index with economic growth as a moderating variables in Indonesia. Population in this research is Indonesia and 20 of them were selected to be the samples for this research through purposive sampling technique. Estimates conducted by the multiple regression analysis. The data that were used in this study were secondary data, consisted of Government Expenditure, Inflation, and Poverty to human development index for the year 2000-2019. The results of this research, that Based on the partial test (t test), the Poverty variable has no significant effect while the Inflation and Government Expenditure variables have a significant effect on the variables of the human development index in Indonesia, the simultan test (F test), government expenditure, inflation, and poverty have a significant effect on the variables of the human development index. The economic growth variables are unable to moderate the relationship between government expenditure, inflation and poverty on the human development index.


2020 ◽  
Vol 5 (3) ◽  
pp. 253-269
Author(s):  
Majed Alharthi ◽  
Imran Hanif

Purpose This study aims to examine the influence of the blue economy factors on the economic growth of the South Asian Association for Regional Cooperation (SAARC) countries. Design/methodology/approach Secondary data from 1995 to 2018 have been used for the analysis of eight countries. The contributing factors that measure the fishing production are total aquaculture production, total fisheries production and agriculture, forestry and fishing. Trade and the rate of inflation are used as control variables. Using the feasible generalized least square technique. Findings It was found that the blue economy factors play a statistically significant role in the economic growth of SAARC countries and contribute to the achievement of Goal 14 of the United Nations’ sustainable development goals: to conserve and sustainably use the oceans, seas and marine resources for sustainable development. Originality/value This study highlights the fact that proper management and utilization of water resources may assist the stimulation of economic growth and meet the challenges of food insecurity by improving the supply of seafood in developing South Asian countries. The study proposes that the sustainable management of water resources requires an alliance across nation states. The alliance will be useful in understanding the concept of the blue economy and the role it plays in ensuring economic growth in developing nations throughout the world.


2009 ◽  
Vol 5 (1) ◽  
pp. 70-82 ◽  
Author(s):  
Hakeem Ishola Mobolaji ◽  
Kamil Omoteso

PurposeThe general objective of the paper is to investigate the impact of corruption and other institutional factors on economic growth in some selected transitional economies for the period of 1990‐2004 and make policy recommendations for combating it. Specifically, the study attempts to: assess whether corruption has any impact on the growth of the sample countries; examine whether simultaneous policy reform focussing on accountability and rule of law impact positively on growth of these economies; and investigate whether corruption in these countries exhibit the efficient grease syndrome.Design/methodology/approachThe indices for corruption and other institutional variables were drawn from International Country Risk Guide (ICRG – PRS) for the period of 1990‐2004, the polity data were obtained from the Polity IV, while the real gross domestic product (GDP) per capita growth were obtained from the Penn World 6.2. The study covered the period between 1990 and 2004 that coincides with the real transition of these economies from centrally planned to market economies. It adopts the panel data framework, the fixed effect, the random effect and the maximum likelihood estimation techniques for the analysis.FindingsThe study's findings support Mauro's hypothesis that corruption has a negative impact on the economies. However, the study cannot find a robust statistical evidence to support the efficient grease hypothesis of Leff and Huntington.Research limitations/implicationsThe paper recommends policy efforts that would strengthen accountability and bureaucratic quality, reduce discretionary power, ethnic fractionalisation and military involvement in politics with a view to enhancing social responsibility practices at both micro and macro levels.Originality/valueUnlike previous studies that focussed on single cross‐country regression with an assumption of identical aggregate production function for all countries, this study adopts the panel data framework that makes it possible to allow for differences in the form of unobservable individual country effects. The paper employs the fixed effect, the random effect and the maximum likelihood estimation techniques.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amarendu Nandy ◽  
Chhavi Tiwari ◽  
Sayantan Kundu

Purpose The COVID-19 pandemic educed extraordinary policy responses globally, including in India, to flatten the infection-growth curve. The trajectories of infections, recovery, and deaths vastly differed across Indian states. The purpose of this study is to investigate whether persistent investments by states in critical social sectors, such as health and education, explain their preparedness and hence better management of the pandemic. Design/methodology/approach This study uses secondary data on the number of infected, recovered and deceased due to COVID-19, along with data on population and income across 302 districts in 11 major states in India. Data on health and education indices are collected at the state-level. Linear regression models that also control for heteroskedasticity are applied. Findings This study finds that higher investments in health care and education reduce the propensity of the infection spread. Further, states with persistent investments in health care and education exhibit a higher rate of recovery. This study also finds that death rates are significantly lower in states with higher investments in education. Research limitations/implications The findings support the conjecture that states that have consistently invested in social sectors benefited from the associated positive externalities during the crisis that helped them manage the pandemic better. Originality/value This study will help policymakers understand the underlying social forces critical to the success in the fight against pandemics. Apart from improving preparedness for future pandemics, the evidence provided in the paper may help give better direction and purpose to tax-financed public spending in states where social sector development has hitherto received low priority.


2017 ◽  
Vol 4 (1) ◽  
pp. 117
Author(s):  
Riza Firdhania ◽  
Fivien Muslihatinningsih

This research describes the relation between variables of population, inflation, minimum wage, economic growth, and humandevelopment index toward the unemployment rate in Jember. The type of data used in this research was secondary data in theform of ‘time series’ obtained from Jember Department of Labor and Central Bureau of Statistics in the year of 2002-2013.The research method was a kind of statistical descriptive analysis and multiple linear regression analysis. Moreover, theresearcher used partial test (T-test), simultaneous test (F-test), and coefficients determination test (R2) for the hypothesis.Whereas the assumption test was conducted in the use of normality, multicollinearity, heteroscedasticity, and autocorrelationtest. From the result of the data analysis, it confirmed that the population positively and significantly affected theunemployment rate in Jember. The variables of inflation, minimum wage, and human development index negatively andsignificantly affected the unemployment rate in Jember. Whereas the variables of economic growth positively and significantlyaffected unemployment rate in Jember. Finally, the result of the data analysis highlighted the variables of population,inflation, minimum wage,economic growth, and human development index that simultaneously and significantly affectedunemployment rate in Jember.


2020 ◽  
Vol 2 (3) ◽  
pp. 169-176
Author(s):  
Puji Yuniarti ◽  
Wiwin Wianti ◽  
Nandang Estri Nurgaheni

Purpose- This study aims to determine the factors of economic growth in 34 provinces in Indonesia. The variables used include labor force participation rate, human development index, Poverty Level, unemployment rate, income inequality, and economic growth. Methods- Secondary data from the Central Bureau of Statistics were processed using multiple linear regression. Findings- The study show that only force participation rate and unemployment rate were proven to significantly affect economic growth, while human development index, poverty level, and income inequality were not statistically significant. Implications- This study can provide important information on the factors shaping economic growth as a basis for future decision making. Abstrak Tujuan- Penelitian ini bertujuan untuk mengetahui faktor-faktor pertumbuhan ekonomi di 34 provinsi di Indonesia. Variabel yang digunakan antara lain tingkat partisipasi angkatan kerja, indeks pembangunan manusia, tingkat kemiskinan, tingkat pengangguran, ketimpangan pendapatan, dan pertumbuhan ekonomi. Metode- Data sekunder dari Badan Pusat Statistik diolah dengan menggunakan regresi linier berganda. Temuan- Studi tersebut menunjukkan bahwa hanya tingkat partisipasi angkatan dan tingkat pengangguran yang terbukti secara signifikan mempengaruhi pertumbuhan ekonomi, sedangkan indeks pembangunan manusia, tingkat kemiskinan, dan ketimpangan pendapatan tidak signifikan secara statistik. Implikasi- Studi ini dapat memberikan informasi penting tentang faktor-faktor yang membentuk pertumbuhan ekonomi sebagai dasar pengambilan keputusan di masa depan


2021 ◽  
Vol 4 (1) ◽  
pp. 21
Author(s):  
Jihad Lukis Panjawa ◽  
Bhimo Rizky Samudro

Inequality still becomes popular issue in the establishment of developing countries. Aside from the income inequality, the human development inequality is considered as an interesting topic for further study, in terms of resuming the solution. The purpose of this study is considered as specific in identifying the human development gap between origin and new regencies in Eastern Indonesia as well as the determinant. This study uses a positivist perspective with a deductive approach. Secondary data with cross-section types used in this study covers regencies and cities in Eastern Indonesia. This study uses the econometrics methodology using regression analysis with a dummy variable. The results showed there were differences in human development index between origin and new regencies in Eastern Indonesia. The human development index in the new regency is lower than in the origin regency. The results support the Myrdal’s Theory, which explains the gap in human development disparities among regions due to the significant backwash effects. Fiscal decentralization has a role in reducing the gap in human development in origin and new regencies, yet insignificant for the economic growth. Poverty lowers the impact on increasing human development in the origin regencies but does not occur in the new regencies.JEL Classification  H30; I32; O15


2020 ◽  
Vol 3 (1) ◽  
pp. 12
Author(s):  
Laeli Sugiyono

<p>This study aims to analyze the disclosure distribution of the position regency/city in Central Java based on the linkage of Economic Growth (EG) and Human Development Index (HDI). The study uses secondary data in the form of cross-sectional regional regency/city based on EG and HDI components. Data analysis uses regency/city distribution plot diagram based on EG and HDI components in the Cartesian diagram which divides the space into 4 Quadrants, namely: Quadrant I of the regency/city distribution plots with high EG and HDI, Quadrant II of the regency/city distribution plots with low EG and high HDI, Quadrant III of the regency/city distribution plots with high EG and low HDI, and Quadrant IV of the regency/city distribution plots with low EG and HDI. This study concludes that the position of cities in Central Java in general is in line with the Quadrant I group, the HDI of regency/city in the area of the ex-Semarang and ex-Surakarta residency is in Quadrant I. Other regencies/cities are spread in Quadrant II, III, and IV.</p><p><strong>Keywords</strong><strong> : </strong>human development index, economic growth, Central Java, distribution plot</p><p> </p>


Significance The bill aims to expand the accruable revenue for the federal government, crucial for meeting the government’s 2022 fiscal targets. In particular it looks to close existing tax loopholes rather than raising consumption taxes which could inhibit economic growth. Impacts Increased taxes will only have a limited impact on consumer spending and inflation. The bill will not appreciably increase state-level revenues. Broader institutional reforms in the public sector are unlikely due to powerful patronage networks.


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