Output growth of the Malaysia’s manufacturing sector – do foreign workers matter?

2018 ◽  
Vol 45 (4) ◽  
pp. 876-895 ◽  
Author(s):  
Atif Awad ◽  
Ishak Yussof ◽  
Norlin Khalid
Keyword(s):  
Migrant Workers ◽  
Manufacturing Sector ◽  
Output Growth ◽  
Foreign Workers ◽  
Skill Levels ◽  
Content Type ◽  
Pooled Mean Group ◽  
Long Run ◽  
Manufacturing Sectors ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of migrant workers on the output growth of 15 sub-industries of the manufacturing sector in Malaysia during the period 1990–2008. The paper seeks to answer the following critical questions: what is the impact of migrant workers on the output growth of the manufacturing sector, the leading sector of Malaysian economy? It is possible that migrant workers with different skill levels may have different impacts on output growth of such sector? Design/methodology/approach The paper employs three econometric techniques: mean group, dynamic fixed effect and the pooled mean group on extended form for Cobb–Douglas production function. Findings The overall findings suggest that due to the inflow of low skills of migrant workers, output growth in the manufacturing sectors is likely to witnesses a marginal decline in the long run. Originality/value The present study complements previous studies by providing a quantitative assessment of the impact of migrant workers on output growth in the manufacturing sector in Malaysia, which is not attempted in extant literature. More importantly, the analysis considers the probability that migrant workers with different skill levels may have different impacts on the growth of output in the manufacturing sector.

Productive contribution of local and foreign workers in Singapore manufacturing industries

2016 ◽  
Vol 43 (3) ◽  
pp. 380-399 ◽  
Author(s):  
Shandre Mugan Thangavelu
Keyword(s):  
Panel Data ◽  
Capital Investment ◽  
Manufacturing Sector ◽  
Sustainable Growth ◽  
Policy Implications ◽  
Foreign Workers ◽  
Content Type ◽  
Industry Level ◽  
Manufacturing Productivity ◽  
The Impact

Purpose – The purpose of this paper is to study the impact of large inflow of foreign workers on the Singapore manufacturing productivity using a panel data at the disaggregated industry level from 1998 to 2008. The results indicate that foreign workers do make productive contribution to manufacturing productivity, but it is much lower as compared to local workers. However, the author observe the declining capital-labour ratio with the increase in the flow of foreign workers. This is expected to have direct impact on the competitiveness of the manufacturing in the export market. Since new technologies are embodied in new capital investment, the declining capital-labour ratio indicates that workers might be producing output with less technology-intensive capital. Conversely, local workers are more productive with high capital investment, indicating that local workers are more skilled and hence there is more complementarity between capital investments and local human capital. Design/methodology/approach – The author implement a panel estimation of disaggregated industry level data of Singapore manufacturing from 1998 to 2008. The author use GMM estimation to control for any endogeneity issues in the estimation. Findings – The results indicate that foreign workers do make productive contribution to manufacturing productivity; but it is much lower as compared to local workers. However; the author observe the declining capital-labour ratio with the increase in the flow of foreign workers. Research limitations/implications – The data for foreign workers at the disaggregated level is not publically available and this is given for this research purpose. The data for foreign workers is limited as it does not have by educational levels. Practical implications – This is the first paper to study impact of foreign workers on manufacturing sector at a disaggregated panel data. There are important policy implications for managing foreign workers and achieving sustainable growth for the Singapore economy. Social implications – The welfare and social impacts of foreign workers on the Singapore economy is discussed. There is also the issue of policy calibration to balance the flow of foreign workers in the Singapore economy. Originality/value – This is the first paper to study impact of foreign workers on manufacturing sector at a disaggregated panel data.

International capital inflows and labour immigration

2016 ◽  
Vol 43 (12) ◽  
pp. 1420-1438 ◽  
Author(s):  
Evelyn S. Devadason ◽  
Thirunaukarasu Subramaniam
Keyword(s):  
Migrant Workers ◽  
Migrant Worker ◽  
Policy Coordination ◽  
Output Growth ◽  
Trade Theory ◽  
Model Framework ◽  
Fdi Inflows ◽  
Content Type ◽  
Long Run ◽  
Cointegration Tests

Purpose The purpose of this paper is to examine the relationship between inward foreign direct investment (FDI) and unskilled immigrants for a panel of 23 manufacturing industries in Malaysia, spanning the period 1985-2009. Design/methodology/approach The paper establishes the causal FDI-immigrant links within a multivariate model framework for the period 2000-2009, and in a univariate context for 1985-1999 and 1985-2009. Findings Based on heterogeneous panel cointegration tests, there is a long-run equilibrium between inward FDI, unskilled migrant share, output growth, export intensity and market concentration. The long-run cointegrating coefficient based on the fully modified least squares estimator suggests the presence of unskilled migrant workers a significant location determinant for inward FDI for the first sub-period and the overall period. The results of the panel vector error correction model further attest to causal links between unskilled migrant worker presence and inward FDI in the short- and long run. Bidirectional causality between inward capital and labour flows is present in the first sub-period and unidirectional causal links from unskilled migrants to inward FDI is evident for the overall period. Research limitations/implications The observed FDI-immigration (unskilled) links in manufacturing support the argument that inward FDI is induced by unskilled migration. The study reveals that unskilled immigration increases FDI inflows or rather “capital chases labour” in terms of international factor mobility. Practical implications This has profound implications for public policy as the government seeks to reduce its dependence on migrant workers. Policy coordination is therefore needed between regulating inflows of foreign capital and foreign labour so that implemented policies do not pull in different directions and undermine Malaysia’s attractiveness as a destination for FDI. Originality/value The large presence of unskilled migrants, an intrinsic characteristic (based on the new trade theory that includes factor endowments) of Malaysia, seems to be largely ignored when explaining FDI inflows to manufacturing, particularly so when the siting of MNCs in this sector have traditionally been in light scale manufacturing.

scholarly journals The impact of FDI on Nigeria’s export performance: a sectoral analysis

2018 ◽  
Vol 45 (5) ◽  
pp. 1088-1103 ◽  
Author(s):  
Obiora G. Okechukwu ◽  
Glauco De Vita ◽  
Yun Luo
Keyword(s):  
Service Sector ◽  
Manufacturing Sector ◽  
Export Performance ◽  
Content Type ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Oil Exports ◽  
The Impact ◽  
Sectoral Fdi

Purpose The purpose of this paper is to examine the foreign direct investment (FDI)–exports relationship in Nigeria using disaggregated FDI and export data. Design/methodology/approach This paper applies the autoregressive distributed lag cointegration approach in examining the long-run relationship between FDI and exports. Findings The results suggest that aggregate FDI has a positive and statistically significant long-run impact on total exports. Once exports are disaggregated into oil and non-oil exports, the positive, cointegrating relationship holds only for oil exports. When disaggregated by sector, primary sector and manufacturing sector FDI have a positive and significant long-run relationship with both total exports and oil exports but service sector FDI does not appear to have any significant influence on Nigerian exports. Originality/value This is the first paper that employs both sectoral FDI and disaggregated export data to examine the FDI–exports nexus in Nigeria.

The impact of China's trade, aid and FDI on African economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Derrick Anquanah Cudjoe ◽  
He Yumei ◽  
Hanhui Hu
Keyword(s):  
Economic Growth ◽  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
Generalized Method Of Moments ◽  
Marginal Effect ◽  
African Countries ◽  
Content Type ◽  
Long Run ◽  
Per Capita ◽  
The Impact

PurposeThis study examines the impact of China’s trade, aid and foreign direct investment (FDI) on the economic growth of Africa.Design/methodology/approachOur study covered 41 countries in Africa, cutting across the western, eastern, central, southern and northern sub-regions. The study adopted the dynamic system generalized method of moments (SGMM), feasible generalized least squares (FGLS) and Dumitrescu–Hurlin Panel Granger causality techniques for estimations.FindingsOverall, FDI, trade and aid from China have a nonlinear relationship with Africa’s economic growth. The findings reveal a key novelty in that the marginal effect on real per capita GDP increases when China’s FDI interacts with the manufacturing sector in Africa. These findings are robust to long-run estimations.Research limitations/implicationsGiven that we have examined the short-and long-run symbiotic effects of China’s FDI and Africa’s manufacturing sector and China’s aid and Africa’s manufacturing sector, more studies are warranted in this area, particularly to produce further empirical evidence of these findings. Moreover, future work could focus on investigating the country-specific effects of China’s trade, China’s FDI and China’s aid on real GDP per capita in each African country as our results reflect within-country elasticities.Originality/valueThis study provides new evidence on the impact of China’s trade, aid and FDI on the growth of African economies. To the best of our knowledge, this is the first study to empirically explore the long-run effects of China’s trade, FDI and aid on economic growth in African countries. This study also tests the claim of the displacement of Africa’s manufacturing industry by its Chinese counterparts.

Real exchange rate misalignment and economy

2019 ◽  
Vol 46 (1) ◽  
pp. 211-227 ◽  
Author(s):  
Hock Tsen Wong
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Manufacturing Sector ◽  
Economic Sectors ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Exchange Rate Misalignment ◽  
Productivity Differential ◽  
The Impact

PurposeThe purpose of this paper is to examine the impact of real exchange rate misalignment on economy and economic sectors, namely construction, manufacturing and mining and quarrying in Malaysia.Design/methodology/approachThe equilibrium real exchange rate and economic models are estimated using the autoregressive distributed lag approach.FindingsAn increase in productivity differential or reserve differential will lead to an appreciation of real exchange rate in the long run. An increase in positive (negative) real exchange rate misalignment will lead to an increase (decrease) in economy. An increase in long-run real exchange rate misalignment will lead to a decrease in economy. Real exchange rate misalignment or long-run real exchange rate misalignment can influence the manufacturing sector in Malaysia. More specifically, undervaluation will promote whereas overvaluation will hurt the manufacturing sector.Originality/valueReal exchange rate misalignment can be a policy to influence economy but may not be the best choice.

Economic Growth and Foreign Workers in ASEAN and Singapore

2012 ◽  
Vol 11 (3) ◽  
pp. 114-136 ◽  
Author(s):  
Shandre Mugan Thangavelu
Keyword(s):  
Open Economy ◽  
Wage Gap ◽  
Small Open Economy ◽  
Output Growth ◽  
Foreign Workers ◽  
Domestic Economy ◽  
Unskilled Workers ◽  
Market Trends ◽  
State Growth ◽  
The Impact

This paper studies the trends of foreign immigrants in Asia and their effect on the growth of the Singapore economy. The paper also discusses the key labor market trends and the rationale for foreign workers in a small open economy like Singapore. Further, the paper highlights key simulations of the impact of foreign immigrants on output growth and wage gap for the Singapore economy by using Thangavelu's (2011) dynamic general equilibrium model. The study accounts for the flow of skilled and unskilled foreign workers on (a) steady-state growth; (b) the wage gap between the skilled and unskilled workers; and (c) innovation capabilities of the domestic economy. Further, the model also accounts for the contribution of immigrants on the welfare of the domestic economy through the immigration surplus that will accrue to the domestic economy.

Best-value supply chains and firms’ competitive performance: empirical studies of their linkage

2015 ◽  
Vol 35 (12) ◽  
pp. 1688-1709 ◽  
Author(s):  
Xun Li ◽  
Qun Wu ◽  
Clyde W. Holsapple
Keyword(s):  
Supply Chains ◽  
Competitive Advantage ◽  
Empirical Studies ◽  
Abnormal Returns ◽  
Competitive Performance ◽  
Content Type ◽  
Long Run ◽  
Best Value ◽  
Multiple Method ◽  
The Impact

Purpose – Best-value supply chains characterized by agility, adaptability, and alignment, have become a crucial strategic means for firms to create and sustain competitive advantage in today’s turbulent environment. The purpose of this paper is to investigate linkage between best-value supply chains and firms’ competitive performance. Design/methodology/approach – In Study 1, survey data from 76 firms is used to test the impact of the three qualities of best-value supply chains on firms’ competitive performance. In Study 2, to test if a firm’s competitive advantage can be sustained through building best-value supply chains, a long-run performance analysis is conducted, which is based on a stock portfolio of firms identified from the American Marketing Association’s annual list of “Supply Chain Top 25.” Findings – The results of Study 1 indicate that the three qualities of best-value supply chains are positively related to firms’ competitive performance. The results of Study 2 show that firms having best-value supply chains generate significant and positive abnormal returns for shareholders over time. Originality/value – This is a multiple-method research, providing two-level empirical evidence to the investigation of theoretical linkage between best-value supply chains and firms’ competitive performance.

Association between mass collaboration and knowledge management: a case ofJordan companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hosam Alden Riyadh ◽  
Laith T. Khrais ◽  
Salsabila Aisyah Alfaiza ◽  
Abdulsatar Abduljabbar Sultan
Keyword(s):  
Knowledge Management ◽  
Organizational Structure ◽  
Structural Equation ◽  
Manufacturing Sector ◽  
Equation Modeling ◽  
Content Type ◽  
Mass Collaboration ◽  
Organization Level ◽  
Learning Techniques ◽  
The Impact

Purpose The key purpose of this research paper was to identify the association between mass collaboration and knowledge management in the context of Jordanian companies. Apart from that, this study also aims to examine the moderating effect of trust and leadership on the association between mass collaboration and knowledge management. Design/methodology/approach In this study, the researcher has followed theprimary quantitative method. For data collection, the researcher has conducted a survey questionnaire, whereas the sample was based on 323 participants from the manufacturing sector of Jordan specifically for data analysis; the technique of structural equation modeling was implemented. Findings All the independent variables, including organizational structure, adoptedtechnologies in mass collaboration and collaborative learning techniques, have a significantimpact on knowledge management and leadership. Moreover, leadership was also found to be significantly moderating the association between adopted technologies in mass collaboration and knowledge management. Similarly, trust also significantly moderates the association of organizational structure and adopted technologies in mass collaboration significantly with knowledge management. Research limitations/implications All study respondents were from Jordan, which might limit the generalizability of the findings. The researchers also invited for more researchers in the incorporation of the time sequence in the proposed causal relations and in the organization level through which mass collaboration and knowledge management. Originality/value This study promises to make a valuable contribution to the existing literature, as there was a lack of evidence in the previous studies regarding the impact of mass collaboration on knowledge management within the context of Jordan.

Foreign capital inflows and economic growth: the experience of low-income countries in Sub Saharan Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atif Awad
Keyword(s):  
Low Income ◽  
Foreign Capital ◽  
Ordinary Least Squares ◽  
Capital Inflows ◽  
Sub Saharan Africa ◽  
Low Income Countries ◽  
Content Type ◽  
Long Run ◽  
Foreign Capital Inflows ◽  
The Impact

Purpose This paper aims to investigate the long-run impact of selected foreign capital inflows, including aid, remittances, foreign direct investment (FDI), trade and debt, on the economic growth of 21 low-income countries in the Sub Saharan Africa (SSA) region, during the period 1990–2018. Design/methodology/approach To obtain this objective and for robust analysis, a parametric approach, which was dynamic ordinary least squares, and a non-parametric technique, which was fully modified ordinary least squares, were used. Findings The results of both models confirmed that, in the long run, trade and aid affected the growth rate of the per capita income in these countries in a positive way. However, external debt seemed to have an adverse influence on such growth. Originality/value First, this is the initial study that has addressed this matter across a homogenous group of countries in the SSA region. Second, while most of the previous studies regarding capital inflows into the SSA region have focused on the impact of only one or two aspects of such foreign capital inflows on growth, the present study, instead, examined the impact of five types of foreign capital inflows (aid, remittances, FDI, trade and debt).

Human capital accumulation, income distribution, and economic growth: a demand-led analytical framework

2021 ◽  
Vol 9 (3) ◽  
pp. 319-336
Author(s):  
Gilberto Tadeu Lima ◽  
Laura Carvalho ◽  
Gustavo Pereira Serra
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Analytical Framework ◽  
Output Growth ◽  
Human Capital Accumulation ◽  
Capital Utilization ◽  
Tax Rate ◽  
Long Run ◽  
The Impact ◽  
Long Run Equilibrium

This paper incorporates human capital accumulation through provision of universal public education by a balanced-budget government to a demand-driven analytical framework of functional distribution and growth of income. Human capital accumulation positively impacts on workers’ productivity in production and their bargaining power in wage negotiations. In the long-run equilibrium, a rise in the tax rate (which also denotes the share of output spent in human capital formation) lowers the pre- and after-tax wage share and physical capital utilization, and thus raises (lowers) the output growth rate when the latter is profit-led (wage-led). The impact of a higher tax rate on the employment rate (which also measures human capital utilization) in the long-run equilibrium is negative (ambiguous) when output growth is wage-led (profit-led). In any case, the supply of higher-skilled workers does not automatically create its own demand.

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