This paper analyses public spending efficiency and the effect of political and economic factors o... more This paper analyses public spending efficiency and the effect of political and economic factors on public spending efficiency in East Asian countries for the period 2000-2007. In the first stage, the non-parametric Data Envelopment Analysis (DEA) approach is used to estimate public spending efficiency scores. In the second stage, the Tobit regression model is then used to determine the effect of political and economic factors on public spending efficiency. Results of the study show that China is relatively efficient in public spending on education, health, and maintaining economic performance and stability, Japan on infrastructure, and Singapore on promoting public services. In addition, countries in East Asia are relatively less efficient in public spending for promoting equal income distribution. The results also indicate that political stability and financial freedom have a positive effect on public spending efficiency. However, voice, accountability, and civil liberties have a negative effect on public spending efficiency.
Recently, the government has decided that Malaysia would introduce a minimum wage policy. However... more Recently, the government has decided that Malaysia would introduce a minimum wage policy. However, some quarters argued against the idea of a nationwide minimum wage asserting that it will lead to an increase in the cost of doing business and thus will hurt Malaysian competitiveness. Although standard economic theory unambiguously implies that wage floors have a negative impact on employment, the existing empirical literature is not so clear. Some studies have found the expected negative impact on employment, yet others have found no impact or, in occasional cases, a positive effect of minimum wages on jobs. It is also argued that, a minimum wage law, if pegged above the market wage, could leads to a general misallocation of resources and loss of efficiency in the overall economy. However, there is no study linking minimum wage on a country's efficiency. Hence, the objective of this study is to analyse the effect of minimum wage policy on a country's technical efficiency. To...
Using bilateral foreign direct investment (FDI) stocks around the world, we explore the importanc... more Using bilateral foreign direct investment (FDI) stocks around the world, we explore the importance of a wide range of institutional variables as determinants of the location of FDI. While we find that better institutions have overall a positive and economically significant effect on FDI, some institutional aspects matter more than others do. Especially, the unpredictability of laws, regulations and policies,
The identification on the main determinants of food price inflation in Malaysia was the focus of ... more The identification on the main determinants of food price inflation in Malaysia was the focus of this study. Using the data from 1960 to 2013, the long run relationship among food price inflation and its determinants (per capita GDP, petrol prices, GST, population and unemployment) were found by utilizing Johansen's co-integration technique. All determinants affected food price inflation positively and significantly in the long run except GST which was proxied by the sale and service tax was insignificant with correct positive sign. The short run dynamics using the Vector Error Correction Model (VECM) indicated that food price inflation was only affected by per capita GDP, sale tax, petrol price, and population.
This paper analyses public spending efficiency and the effect of political and economic factors o... more This paper analyses public spending efficiency and the effect of political and economic factors on public spending efficiency in East Asian countries for the period 2000-2007. In the first stage, the non-parametric Data Envelopment Analysis (DEA) approach is used to estimate public spending efficiency scores. In the second stage, the Tobit regression model is then used to determine the effect of political and economic factors on public spending efficiency. Results of the study show that China is relatively efficient in public spending on education, health, and maintaining economic performance and stability, Japan on infrastructure, and Singapore on promoting public services. In addition, countries in East Asia are relatively less efficient in public spending for promoting equal income distribution. The results also indicate that political stability and financial freedom have a positive effect on public spending efficiency. However, voice, accountability, and civil liberties have a negative effect on public spending efficiency.
Recently, the government has decided that Malaysia would introduce a minimum wage policy. However... more Recently, the government has decided that Malaysia would introduce a minimum wage policy. However, some quarters argued against the idea of a nationwide minimum wage asserting that it will lead to an increase in the cost of doing business and thus will hurt Malaysian competitiveness. Although standard economic theory unambiguously implies that wage floors have a negative impact on employment, the existing empirical literature is not so clear. Some studies have found the expected negative impact on employment, yet others have found no impact or, in occasional cases, a positive effect of minimum wages on jobs. It is also argued that, a minimum wage law, if pegged above the market wage, could leads to a general misallocation of resources and loss of efficiency in the overall economy. However, there is no study linking minimum wage on a country's efficiency. Hence, the objective of this study is to analyse the effect of minimum wage policy on a country's technical efficiency. To...
Using bilateral foreign direct investment (FDI) stocks around the world, we explore the importanc... more Using bilateral foreign direct investment (FDI) stocks around the world, we explore the importance of a wide range of institutional variables as determinants of the location of FDI. While we find that better institutions have overall a positive and economically significant effect on FDI, some institutional aspects matter more than others do. Especially, the unpredictability of laws, regulations and policies,
The identification on the main determinants of food price inflation in Malaysia was the focus of ... more The identification on the main determinants of food price inflation in Malaysia was the focus of this study. Using the data from 1960 to 2013, the long run relationship among food price inflation and its determinants (per capita GDP, petrol prices, GST, population and unemployment) were found by utilizing Johansen's co-integration technique. All determinants affected food price inflation positively and significantly in the long run except GST which was proxied by the sale and service tax was insignificant with correct positive sign. The short run dynamics using the Vector Error Correction Model (VECM) indicated that food price inflation was only affected by per capita GDP, sale tax, petrol price, and population.
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