DOES TRADE WITH LABOUR SENDING COUNTRIES REDUCE DEMAND FOR MIGRANT WORKERS: A LESSON FROM MALAYSIA
Journal Title: Asian Economic and Financial Review - Year 2013, Vol 10, Issue 3
Abstract
This paper has three objectives. The first objective is to examine the long-run relationships among exports, imports, income and demand for migrant workers. This is followed by a causality test between these variables as the second objective. Finally, the third objective is to examine the extent to which exports, imports and income affect the demand for migrant workers. The study utilizes time series data and a Vector Auto Regressive (VAR) framework while examining two models, namely, Malaysia and Malaysia-Indonesia (Malindo). The findings show that all variables in the models are cointegrated. Generally, there is no short-run causality between variables in the models. In the long-run, causality runs from exports, imports and income to demand for migrant workers for the Malaysia model. There is bi-directional causality in the long-run between exports and imports, respectively, and demand for migrant workers in the Malindo model. Exports and demand for migrant workers in the Malaysia model, and exports and imports, respectively, and demand for migrant workers from Indonesia in the Malindo model are substitutes. Moreover, the income per capita for Malaysia has a non-significant negative effect on the demand for total migrant workers and a significant positive effect on the demand for migrant workers from Indonesia. The study suggests that trade can be a necessary instrument, but not a sufficient instrument for reducing the demand for migrant workers.
Authors and Affiliations
Fariastuti Djafar| Faculty of Economics and Business, Universiti Malaysia Sarawak, Mohd Khairul Hisyam Hassan| Faculty of Economics and Business, Universiti Malaysia Sarawak
Keywords
Related Articles
- EP ID EP1964
- DOI -
- Views 519
- Downloads 35
COASIAN THEOREM, PUBLIC DOMAIN, AND PROPERTY RIGHTS PROTECTION
In this paper, the expressions of Coasian Theorem and the concept of public domain are discussed at the beginning. Based on it, this paper derived a mathematic logic about Coasian Theorem. At last, it proves that if the...
INVOLVEMENT OF CORPORATE ENTITIES IN WAQAF MANAGEMENT: EXPERIENCES OF MALAYSIA AND SINGAPORE
The main focus of this paper is to examine the corporate management models of selected waqaf entities in Malaysia and Singapore. The waqaf entities involved in this study include two corporate waqaf institutions namely K...
DEPRECIATION RATE OF R&D CAPITAL: PANEL DATA ANALYSIS OF LISTED FIRMS IN JAPANESE R&D-INTENSIVE INDUSTRIES
Research and development (R&D) capital is thought to be at the core of technological progress. To measure the effect of R&D capital correctly, the knowledge of its depreciation rate is required. However, few studies have...
DETERMINANTS OF DEMAND FOR SPORTS LOTTERY: INSIGHTS FROM A MULTILEVEL MODEL
Sports lottery, as a distinct sport product, has gained increasing popularity throughout the world. Drawing upon various theories developed over the years explaining the lottery gaming behavior, this study empirically ex...
AN EXAMINATION OF THE FACTORS THAT DETERMINE THE PROFITABILITY OF THE NIGERIAN BEER BREWERY FIRMS
This paper examines the internal factors that determine the profitability of the beer brewery firms in Nigeria. An OLS in the form of multiple regressions were applied to annual data generated from the annual statements...