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The linkage between natural gas consumption and industrial output: new evidence based on time series analysis

2023 , Mohd Shahidan Shaari , Temitayo Blessing Majekodunmi , Nor Fadzilah Zainal , Nor Hidayah Harun , Abdul Rahim Ridzuan

This study is the first to examine the impacts of industrial gas consumption on industrial output in Malaysia due to its significance in the industrial sector. The present study aims to provide valuable insights into sustainable development and carbon emission reduction. The augmented distributed lag (ARDL) approach was employed to explore the relationships between gas consumption, foreign direct investment (FDI), financial development, capital, labor, trade openness, and industrial yield. Gas consumption, FDI, and capital significantly affect industrial output in the short and long runs. Nonetheless, the impacts of labor and financial development were only observed in the long term, while trade openness produced no notable influence on industrial output. The results could lead to critical policy implications as natural gas consumption is associated with lower carbon dioxide (CO2) emissions than non-renewable energy sources, such as oil and coal. Consequently, promoting increased gas utilization in the industrial sector could serve as a crucial driver for sustainable development and environmental protection by simultaneously reducing environmental damage and enhancing output. The current study provided valuable quantitative knowledge for policymakers, industry stakeholders, and any parties intending to advance sustainable economic growth while addressing environmental challenges

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Exploring the relationship between tertiary education and child maltreatment: an ARDL analysis

2023 , Mohd Shahidan Shaari , Noormahayu Mohd Nasir , Nor Hidayah Harun , Siti Nur Fathini Muhsain , Abdul Rahim Ridzuan

This study aims to investigate the correlation between child abuse and tertiary education as a potential determining factor, in addition to established variables such as unemployment, inflation, and economic growth. The data spanning from 1989 to 2020 is analyzed using the Autoregressive Distributed Lag (ARDL) technique. Our findings reveal that inflation can have both short-term and long-term effects on child abuse, while unemployment primarily has a long-term impact on child abuse. However, an interesting discovery emerges as tertiary education demonstrates a protective effect, effectively reducing child abuse in the long run. These findings emphasize the significance of formulating strategies to mitigate the child abuse rate. Policymakers should consider allocating increased resources to enhance tertiary education, recognizing its potential role in preventing child abuse. By focusing on education and addressing the other identified determinants, the government can develop a comprehensive approach to safeguarding children and promoting their well-being. The novelty of this study lies in highlighting the importance of tertiary education and its potential for reducing child abuse, providing valuable insights for policymakers, researchers, and advocates in their efforts to protect vulnerable children.

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Green technology, exports, and CO₂ emissions in Malaysia

2023 , Temitayo B. Majekodunmi , Mohd Shahidan Shaari , Abdul Rahim Ridzuan , Noorazeela Zainol Abidin

The pressing global effort to tackle CO₂ emissions has brought about a strong emphasis on adopting green technology by economies striving for low-carbon development. Within this context, this research investigates the environmental significance of green technology and exports in Malaysia. By examining 30-year data from 1989 to 2019 and utilising the autoregressive distributed lag model (ARDL), this study explores these variables' long-run and short-run effects on Malaysia's environment. The outcomes reveal noteworthy insights: population growth and green technology negatively impact environmental degradation, whereas exports and economic expansion contribute to environmental depletion over the long term. However, the influences of a higher population and exports are inconsequential in the short term. Additionally, the study captures the influences of transient economic challenges, such as the COVID-19 outbreak. Consequently, the study emphasises crucial policy implications for the Malaysian government. Firstly, it strongly recommends increasing investment in sustainable technology, especially within the manufacturing sector, to mitigate the adverse environmental impact of exports. Furthermore, it suggests incentivizing companies to embrace green technology through subsidies for acquiring renewable energy and imposing higher taxes on non-renewable energy sources. Additionally, policymakers are urged to prioritise human capital development by raising public awareness about the dangers of heightened CO₂ emissions. Malaysia can leverage its expertise to foster economic expansion without compromising the environment by engaging the working population in environmentally sustainable economic activities. These policy recommendations aim to expedite the shift towards a decarbonised economy, promote sustainable development, and safeguard Malaysia's natural resources.

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The detrimental effects of dirty energy, foreign investment, and corruption on environmental quality: new evidence from Indonesia

2023 , Amin Pujiati , Heri Yanto , Bestari Dwi Handayani , Abdul Rahim Ridzuan , Halimahton Borhan , Mohd Shahidan Shaari

The alarming trend of CO2 emissions in Indonesia merits a reinvestigation into the determinants in a bid to conserve the environment. In the literature, in Indonesia, three potential determinants, namely, energy, foreign direct investment, and corruption, have been identified to harm the environment. However, their effects are still undetermined. Thus, this study aims to examine the relationships between corruption (COR), energy use (ENY), foreign direct investment (FDI), and CO2 emissions in Indonesia. The autoregressive distributed lag (ARDL) approach was used to analyse data for 36 years, from 1984 to 2020. The results reveal that corruption contributes to greater environmental degradation in the short run, while foreign direct investment does not. However, in the long run, corruption and energy use can positively affect environmental degradation, but foreign direct investment can reduce environmental degradation in Indonesia. This study also found two other factors, namely, economic growth and urbanisation, which can affect the environment with mixed findings. These findings are indispensable for policy formulation in Indonesia as Indonesia is a rapidly developing country that depends on good environmental quality to ensure future growth and sustainable development.

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Innovating for sustainability: the intersection of technology and environmental quality in Indonesia

2023 , Tri Kurniawati , Rani Sofya , Rita Syofyan , Nita Sofia , Abdul Rahim Ridzuan , Mohd Shahidan Shaari

In this study, we placed significant emphasis on the impact of technology on environmental quality in Indonesia. Technology plays a vital role in the country’s progression towards becoming a developed nation; however, it brings both advantages and disadvantages. Indonesia has witnessed substantial economic growth, closely linked to the development and adoption of technology, whether domestically generated or through foreign direct investment (FDI). The primary objective of this study is to investigate the influence of technology and other key macroeconomic variables such as economic growth, FDI, income distribution, globalization, electricity, and urbanization on the level of carbon emissions. The study utilizes annual time series data spanning from 1990 to 2020. The main findings of the study confirm that technology has the potential to reduce environmental pollution levels in the country. However, the impact of other variables on environmental pollution displays a mixed result. Policymakers should pay attention to the significant role of technology and promote government programs that support innovation as a means to address environmental concerns effectively. By doing so, the nation can leverage technology to foster sustainable development and mitigate the adverse impacts of industrialization on the environment.

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Indonesia’s poverty puzzle: chronic vs. transient poverty dynamics

2023 , Lilik Sugiharti , Miguel Angel Esquivias , Mohd Shahidan Shaari , Ari Dwi Jayanti , Abdul Rahim Ridzuan

Indonesia has lowered the total poverty rate by less than 10%. Earlier poverty measurements in Indonesia suggest that transient poverty is more prevalent. We argue that, when employing the Equally Distributed Equivalent (EDE) approach and disaggregated poverty lines, chronic poverty is more prevalent than transient poverty. We estimated chronic and transient poverty in Indonesia from 2007 to 2014 by employing a large longitudinal dataset and disaggregated poverty line measures at the district level. The empirical results are robust in various groups based on education, gender, marital status, location (urban-rural), and employment characteristics (status, farming and non-farming, type, and sector). The results indicate that chronic poverty accounts for at least two-thirds of total poverty. Poverty gaps based on education, regional location, gender, and employment are significant. Moreover, we assess whether poverty is linked to socioeconomic aspects and policy programs using quantile regression. The findings indicate that gender (female), age, number of household members, and household location are positively related to higher poverty and chronic poverty. Household head deaths and physical disabilities are positively associated with poverty. Although the urban-rural poverty gap has decreased, casual workers remain prone to poverty. Moreover, poverty is negatively linked to educational attainment, access to financial, transportation, and communication services, suggesting that improving these aspects may help reduce poverty. Social aid programs that support health, food assistance, education, and conditional cash transfers are negatively linked to both total and chronic poverty. Energy subsidies were not associated with lower levels of poverty.

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Macroeconomic determinants of military expenditure in Malaysia

2020 , Abdul Rahim Ridzuan , Mohd Shahidan Shaari , Nur Surayya Mohd Saudi , Vikniswari Vija Kumaran , Mohamad Idham Md Razak

The decreasing trend of Malaysian annual allocation towards military expenditure in the past 16 years ago has become a subject of interest for this research paper. This paper aim to investigates either the selected macroeconomic variables such as domestic investment, exchange rates, inflation, trade openness and population growth could be the factors that lead towards lower government spending in this country. The ARDL regression is introduced based on the data span range from 1970 until 2016. The long run elasticities showcased that low inflation and currency appreciation lead towards higher government spending on military expenditure while deepening in trade openness cause lower spending on military. The role of inflation again is being highlight as it is also granger cause military expenditure in Malaysia. The list of policy recommendation is being discuss and hopefully it could give a fresh insight to the policymakers with regards to this research topic.

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An environmental assessment of the impacts of corruption, foreign investment inflow and trade liberalization in the rapidly emerging Malaysian Economy

2023 , Bright Akwasi Gyamfi , Stephen Taiwo Onifade , Abdul Rahim Ridzuan , Mohd Shahidan Shaari , Pabitra Kumar Jena

In the wake of various catastrophic consequences of climate change, Malaysia, a rapidly developing economy, is also inevitably experiencing environmental degradation that merits prompt and serious attention from policymakers and its government. Hence, this study simultaneously highlights the short and long-run dynamic connections between carbon emission in Malaysia and the trio of corruption levels, foreign investment inflow, and trade liberalization. The study also controls for a combination of other factors including energy use, GDP, and urbanization. A robust empirical analysis was conducted on time series observations for the country based on the recent Dynamic ARDL simulation. It was observed that Malaysia's per capita pollution levels significantly reduces based on the corruption perception levels during the sampling period while the economic expansion’s effect on emission levels is positive. Additionally, urbanization, trade levels and energy use all aggravate the emission levels. On the other hand, although FDI poses an insignificant environmental damage in the short run, its environmental sustainability enhancement roles were supported by its long-run negative impacts on carbon emission. Lastly, the EKC was established and as such, essential policy directions were provided for stakeholders in the rapidly emerging Malaysian economy.

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Gas consumption as a key for low carbon state and its impact on economic growth in Malaysia: ARDL approach

2023 , Temitayo B. Majekodunmi , Mohd Shahidan Shaari , Nor Fadzilah Zainal , Nor Hidayah Harun , Abdul Rahim Ridzuan , Noorazeela Zainol Abidin , Nur Hayati Abd Rahman

Natural gas consumption contributes the least to CO2 emissions than other non-renewable energy such as oil and coal. Thus, it is important to replace oil in generating economic activities and leading the country towards low carbon state. Despite the environmentally friendly energy, most previous studies did not study gas consumption. Therefore, this study investigates the effects of gas consumption and other selected macroeconomic determinants such as labour, capital, foreign direct investment, trade openness, and financial development on Malaysia's economic growth from 1980 to 2019. The Augmented Distributed Lag (ARDL) approach is employed, and the results show that gas consumption plays a vital role in boosting economic growth in the short and long run. Based on these findings, all economic sectors should consume more natural gas instead of oil, including industries and transportation. This move can conserve the environment and support clean energy for sustainable development. The remaining variables also increased economic growth except for financial development. Based on these outcomes, the country's policymakers can construct a suitable policy that can improve all the potential macroeconomic determinants besides the use of natural gas consumption in accelerating growth in Malaysia.

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The effects of international migration on male unemployment in Malaysia

2020-02 , Mohd Shahidan Shaari , Abdul Rahim Ridzuan , Nor Hidayah Harun , Faiz Masnan

In Malaysia, male employment plays an important role in families as they are breadwinners. However, an increase in international migrants can cause them to be unemployed. Other than that, the number of male employment is higher than the number of female employment. In addition, the number of international migrants also exhibit an increasing trend. This situation has alarmed economists and policymakers. Therefore, this study aims to investigate the effects of international migration on male unemployment in Malaysia from 1982 to 2015. The Autoregressive Distributed Lags (ARDL) technique was employed and the results show that international migrants do not harm the labour force in Malaysia in the long run. This is because Malaysia needs foreign workers in some crucial sectors such as agriculture and construction. However, the results of the causality test reveal that migration can influence male unemployment in the short run. Therefore, it is imperative for policymakers to introduce policies to alleviate the problem of male unemployment, such as controlling the number of permits for foreign workers to work in the sectors that are dominated by local male workers.