Pub Date : 2022-06-14DOI: 10.22452/mjes.vol59no1.5
Chokri Zehri
This paper investigates the effects of foreign assets management (FAM), led by policymakers in emerging market economies, on companies’ capital expenditure with international financial shocks (IFS). Using company-level data from 45 emerging market economies from 2005 to 2020, we employed a multiplicative regression setup for Tobin’s Q ratio capital expenditure framework. First, our findings show that FAM positively affects capital expenditure; this impact is reinforced with stronger detrimental IFS. Second, the capacity to access foreign funding supports FAM policy, and more financially constrained companies are less responsive to FAM. Third, capital controls and macroprudential policies support FAM – they create a protective policy mix in the IFS context. The statistical significance of FAM’s impact on companies’ capital expenditure has an economic implication and is pertinent to the global economy. This study recommends coordinating macro-management policies to isolate companies’ capital expenditure from IFS effectively.
{"title":"Foreign Assets Management and Capital Expenditure: Firm-Level Evidence from 45 Emerging Market Economies","authors":"Chokri Zehri","doi":"10.22452/mjes.vol59no1.5","DOIUrl":"https://doi.org/10.22452/mjes.vol59no1.5","url":null,"abstract":"This paper investigates the effects of foreign assets management (FAM), led by policymakers in emerging market economies, on companies’ capital expenditure with international financial shocks (IFS). Using company-level data from 45 emerging market economies from 2005 to 2020, we employed a multiplicative regression setup for Tobin’s Q ratio capital expenditure framework. First, our findings show that FAM positively affects capital expenditure; this impact is reinforced with stronger detrimental IFS. Second, the capacity to access foreign funding supports FAM policy, and more financially constrained companies are less responsive to FAM. Third, capital controls and macroprudential policies support FAM – they create a protective policy mix in the IFS context. The statistical significance of FAM’s impact on companies’ capital expenditure has an economic implication and is pertinent to the global economy. This study recommends coordinating macro-management policies to isolate companies’ capital expenditure from IFS effectively.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2022-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43756668","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-14DOI: 10.22452/mjes.vol59no1.1
C. Ooi, C. Hooy, Jong-seo Choi
This study investigates the impact of corporate governance code revisions on corporate social performance, and its’ moderating effect on the relationship between corporate social performance and firm value. This study applies the two-stage Heckman sample selection bias approach to tackle endogeneity issues. The sample includes public listed firms from 35 countries that have released their national codes of corporate governance from 2007-2014. Prior to the analysis, we read through the national codes of corporate governance, and find that a majority of the recently revised codes provide new recommendations related to corporate social responsibility. Based on the regression results, we find that progressive corporate governance code revisions are positively related to corporate social performance. In addition, the progressive revisions positively moderate the relationship between corporate social performance and firm value, which is shown in those firms having above-median positive correlation between their corporate governance score and the code revisions. The overall results are robust to industry-adjusted measure of corporate social performance. Furthermore, we find that firm age is important in explaining the moderating effect of corporate governance code revisions.
{"title":"Corporate Governance Code Revisions, Corporate Social Performance and Firm Value: International Evidence","authors":"C. Ooi, C. Hooy, Jong-seo Choi","doi":"10.22452/mjes.vol59no1.1","DOIUrl":"https://doi.org/10.22452/mjes.vol59no1.1","url":null,"abstract":"This study investigates the impact of corporate governance code revisions on corporate social performance, and its’ moderating effect on the relationship between corporate social performance and firm value. This study applies the two-stage Heckman sample selection bias approach to tackle endogeneity issues. The sample includes public listed firms from 35 countries that have released their national codes of corporate governance from 2007-2014. Prior to the analysis, we read through the national codes of corporate governance, and find that a majority of the recently revised codes provide new recommendations related to corporate social responsibility. Based on the regression results, we find that progressive corporate governance code revisions are positively related to corporate social performance. In addition, the progressive revisions positively moderate the relationship between corporate social performance and firm value, which is shown in those firms having above-median positive correlation between their corporate governance score and the code revisions. The overall results are robust to industry-adjusted measure of corporate social performance. Furthermore, we find that firm age is important in explaining the moderating effect of corporate governance code revisions.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2022-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49197764","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-14DOI: 10.22452/mjes.vol59no1.8
Norhanishah Mohamad Yunus, Norehan Abdullah
Using a set of absorptive capacity proxies, we present new empirical findings on the role of absorptive capacity in assimilating the technology effects from the presence of multinational corporations (MNCs) in the Malaysian manufacturing industry. We applied a quantile regression estimator to explicitly gauge the level of absorptive capacity among workers by their levels of education at different quantiles of the conditional FDI distribution during the period of 2000–2018. We conclude that the medium-high technology industries benefit more from FDI if the workers’ absorptive capacity level reaches at least the median quantile. Based on the findings of this study, we suggest that educational digitisation efforts in enhancing quality human capital should be intensified, by equipping them with the latest knowledge and skills, which in turn requires cooperation between universities, public technical and vocational education and training (TVET) institutions as well as MNCs.
{"title":"A Quantile Regression Analysis of Absorptive Capacity in the Malaysian Manufacturing Industry","authors":"Norhanishah Mohamad Yunus, Norehan Abdullah","doi":"10.22452/mjes.vol59no1.8","DOIUrl":"https://doi.org/10.22452/mjes.vol59no1.8","url":null,"abstract":"Using a set of absorptive capacity proxies, we present new empirical findings on the role of absorptive capacity in assimilating the technology effects from the presence of multinational corporations (MNCs) in the Malaysian manufacturing industry. We applied a quantile regression estimator to explicitly gauge the level of absorptive capacity among workers by their levels of education at different quantiles of the conditional FDI distribution during the period of 2000–2018. We conclude that the medium-high technology industries benefit more from FDI if the workers’ absorptive capacity level reaches at least the median quantile. Based on the findings of this study, we suggest that educational digitisation efforts in enhancing quality human capital should be intensified, by equipping them with the latest knowledge and skills, which in turn requires cooperation between universities, public technical and vocational education and training (TVET) institutions as well as MNCs.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2022-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48972054","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-05DOI: 10.22452/mjes.vol58no2.4
Siew-Boey Yeoh, C. Hooy
Our paper uses a multidimensional analysis to provide a better insight on the relationship between CEO foreign experience and corporate risk-taking. By decomposing the foreign experience of CEOs from developing economies such as Malaysia, we find that CEOs who have studied in OECD countries undertake higher levels of risk-taking and CEOs’ foreign working experience may have an adverse effect on risk-taking behaviour especially if the working experience is obtained from non-OECD countries. Additional analysis reveals that younger CEOs and family CEOs with foreign working experience matter in reinforcing the firms’ risk-taking activities. Overall, our findings provide implication for researchers and policymakers seeking to nurture risk-taking behaviours and innovativeness in emerging countries.
{"title":"Foreign Experience of CEOs and Managerial Risk Taking","authors":"Siew-Boey Yeoh, C. Hooy","doi":"10.22452/mjes.vol58no2.4","DOIUrl":"https://doi.org/10.22452/mjes.vol58no2.4","url":null,"abstract":"Our paper uses a multidimensional analysis to provide a better insight on the relationship between CEO foreign experience and corporate risk-taking. By decomposing the foreign experience of CEOs from developing economies such as Malaysia, we find that CEOs who have studied in OECD countries undertake higher levels of risk-taking and CEOs’ foreign working experience may have an adverse effect on risk-taking behaviour especially if the working experience is obtained from non-OECD countries. Additional analysis reveals that younger CEOs and family CEOs with foreign working experience matter in reinforcing the firms’ risk-taking activities. Overall, our findings provide implication for researchers and policymakers seeking to nurture risk-taking behaviours and innovativeness in emerging countries.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2021-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45538516","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-05DOI: 10.22452/mjes.vol58no2.3
V. Dang
The paper empirically examines bank liquidity hoarding fluctuations over the economic cycle and provides further evidence on the heterogeneous cyclicality of bank liquidity hoarding across different banks in Vietnam for the period 2007–2019. Using both static panel models with the fixed-effects regression using corrected Driscoll-Kraay standard errors and dynamic panel models with the two-step system generalized method of moments estimator, we find that the liquidity hoarding of banks is procyclical. Concretely bank liquidity hoarding on- and off-balance sheets tends to increase during economic upturns and decrease during economic downturns. Our additional analysis yields a consistent pattern that financially weaker banks are more procyclical than their stronger counterparts. During booms and busts, the behaviour of hoarding liquidity is more pronounced for banks with smaller sizes, less capital, more risk, and less profit. This heterogeneity also contributes to understanding the core mechanism behind our main findings, further confirming the precautionary motive of bank liquidity hoarding.
{"title":"Economic Cycle and Bank Liquidity Hoarding: Are They Procyclical or Countercyclical?","authors":"V. Dang","doi":"10.22452/mjes.vol58no2.3","DOIUrl":"https://doi.org/10.22452/mjes.vol58no2.3","url":null,"abstract":"The paper empirically examines bank liquidity hoarding fluctuations over the economic cycle and provides further evidence on the heterogeneous cyclicality of bank liquidity hoarding across different banks in Vietnam for the period 2007–2019. Using both static panel models with the fixed-effects regression using corrected Driscoll-Kraay standard errors and dynamic panel models with the two-step system generalized method of moments estimator, we find that the liquidity hoarding of banks is procyclical. Concretely bank liquidity hoarding on- and off-balance sheets tends to increase during economic upturns and decrease during economic downturns. Our additional analysis yields a consistent pattern that financially weaker banks are more procyclical than their stronger counterparts. During booms and busts, the behaviour of hoarding liquidity is more pronounced for banks with smaller sizes, less capital, more risk, and less profit. This heterogeneity also contributes to understanding the core mechanism behind our main findings, further confirming the precautionary motive of bank liquidity hoarding.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2021-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44698995","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-05DOI: 10.22452/mjes.vol58no2.7
M. Sholihin, Ramsah Ali, Deri Wanto
This study aims to examine the literature related to shariah compliance in the Scopus database. Furthermore, classification and critical commentary were applied to find a new direction for developing studies on shariah compliance in Islamic economics. The bibliometric approach was used to analyse 233 articles, while a systematic literature review was used to classify issues from 82 articles on this paradigm. The results showed that the examined studies grew significantly and were influential in developing the shariah compliance paradigm. This was indicated by the author’s highest m-index of 0.666. However, this literature primarily concerns financial institutions and their relationship with the paradigm, followed by related literature in various industries, with extensive discussion on ethics and in the normative context. In this regard, shariah compliance issues can be classified into three topics, namely Islamic banks, non-bank financial institutions, and general firms. Shariah compliance was insufficiently used as an instrument to measure the product restructuring impact of an Islamic bank and a reflection of the compliance from the customer psychology perspective. In this context, it is necessary to transform the paradigm into “preventing exploitation” by introducing the customer exploitation index.
{"title":"Shariah Compliance in Islamic Economics: A Bibliometric Analysis","authors":"M. Sholihin, Ramsah Ali, Deri Wanto","doi":"10.22452/mjes.vol58no2.7","DOIUrl":"https://doi.org/10.22452/mjes.vol58no2.7","url":null,"abstract":"This study aims to examine the literature related to shariah compliance in the Scopus database. Furthermore, classification and critical commentary were applied to find a new direction for developing studies on shariah compliance in Islamic economics. The bibliometric approach was used to analyse 233 articles, while a systematic literature review was used to classify issues from 82 articles on this paradigm. The results showed that the examined studies grew significantly and were influential in developing the shariah compliance paradigm. This was indicated by the author’s highest m-index of 0.666. However, this literature primarily concerns financial institutions and their relationship with the paradigm, followed by related literature in various industries, with extensive discussion on ethics and in the normative context. In this regard, shariah compliance issues can be classified into three topics, namely Islamic banks, non-bank financial institutions, and general firms. Shariah compliance was insufficiently used as an instrument to measure the product restructuring impact of an Islamic bank and a reflection of the compliance from the customer psychology perspective. In this context, it is necessary to transform the paradigm into “preventing exploitation” by introducing the customer exploitation index.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2021-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43821224","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-05DOI: 10.22452/mjes.vol58no2.1
B. Soh, G. Lim, Soo Y. Chua
Malaysia, one of the global major fish producers, has highly traded fisheries products given its many water bodies. Nonetheless, it faces a serious fish trade deficit, implying that the Malaysian fisheries sector might lose its competitiveness in the global market. This paper adopts a modified constant market share (CMS) analysis, which incorporates a net-share approach index and geometric framework, to measure the export competitiveness of the Malaysian fisheries sector. The findings reveal that half of the fisheries products exhibit optimistic export competitiveness. Malaysia reflects the strongest competitiveness in exporting frozen fish and the least competitiveness in the export of crustaceans. Additional effort and attention on those less competitive groups of aquatic invertebrates, live fish and crustaceans are required to improve the export performance. Application of the modified approach is highly proposed as it is not only a simple measurement that gives relatively more accurate results but also succeeds to overcome inconsistency in the traditional approach. The findings provide evidence of unrealised fish export potential regarding product categories, which helps policymakers, traders and marketers to develop their long-term strategic plans and enhance the export competitiveness of the fisheries sector in Malaysia.
{"title":"Competitiveness of Malaysian Fisheries Exports: A Constant Market Share Analysis","authors":"B. Soh, G. Lim, Soo Y. Chua","doi":"10.22452/mjes.vol58no2.1","DOIUrl":"https://doi.org/10.22452/mjes.vol58no2.1","url":null,"abstract":"Malaysia, one of the global major fish producers, has highly traded fisheries products given its many water bodies. Nonetheless, it faces a serious fish trade deficit, implying that the Malaysian fisheries sector might lose its competitiveness in the global market. This paper adopts a modified constant market share (CMS) analysis, which incorporates a net-share approach index and geometric framework, to measure the export competitiveness of the Malaysian fisheries sector. The findings reveal that half of the fisheries products exhibit optimistic export competitiveness. Malaysia reflects the strongest competitiveness in exporting frozen fish and the least competitiveness in the export of crustaceans. Additional effort and attention on those less competitive groups of aquatic invertebrates, live fish and crustaceans are required to improve the export performance. Application of the modified approach is highly proposed as it is not only a simple measurement that gives relatively more accurate results but also succeeds to overcome inconsistency in the traditional approach. The findings provide evidence of unrealised fish export potential regarding product categories, which helps policymakers, traders and marketers to develop their long-term strategic plans and enhance the export competitiveness of the fisheries sector in Malaysia.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2021-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49467365","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-05DOI: 10.22452/mjes.vol58no2.5
Duc Nha Le
Most countries satisfy domestic food consumption by importing from foreign supplies, thus highlighting the role of agricultural exports in maintaining and diversifying the global food supply. In the age of globalisation, whether the flourishing number of regional trade agreements (RTAs) has been facilitating greater market access of agricultural and food products is questioned by national governments. Meanwhile, logistics performance has been the bottleneck of emerging economies, which exerts negative impacts on agricultural export competitiveness in foreign markets. Overall, the interlink between globalisation, logistics and food supply has not been addressed adequately. Therefore, this paper employs the trade gravity model to examine the relationship between agricultural exports, RTAs membership, and logistics performance in the case of Vietnam and her 97 major trading partners. Static and dynamic panel data estimation are employed with the methods applied to solving the zero trade and endogeneity concerns. Findings confirm the interlink between globalisation, logistics and food supply. RTAs-based globalisation and logistics policies are intertwined to secure and diversify import-driven food supply. The unified framework for long-term and sustainable development which aims at strengthening the interlink between globalisation, logistics, agriculture and global food supply should be considered in policy formulation.
{"title":"Globalisation, Logistics and Food Supply: Evidence from Vietnam","authors":"Duc Nha Le","doi":"10.22452/mjes.vol58no2.5","DOIUrl":"https://doi.org/10.22452/mjes.vol58no2.5","url":null,"abstract":"Most countries satisfy domestic food consumption by importing from foreign supplies, thus highlighting the role of agricultural exports in maintaining and diversifying the global food supply. In the age of globalisation, whether the flourishing number of regional trade agreements (RTAs) has been facilitating greater market access of agricultural and food products is questioned by national governments. Meanwhile, logistics performance has been the bottleneck of emerging economies, which exerts negative impacts on agricultural export competitiveness in foreign markets. Overall, the interlink between globalisation, logistics and food supply has not been addressed adequately. Therefore, this paper employs the trade gravity model to examine the relationship between agricultural exports, RTAs membership, and logistics performance in the case of Vietnam and her 97 major trading partners. Static and dynamic panel data estimation are employed with the methods applied to solving the zero trade and endogeneity concerns. Findings confirm the interlink between globalisation, logistics and food supply. RTAs-based globalisation and logistics policies are intertwined to secure and diversify import-driven food supply. The unified framework for long-term and sustainable development which aims at strengthening the interlink between globalisation, logistics, agriculture and global food supply should be considered in policy formulation.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2021-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47408902","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-05DOI: 10.22452/mjes.vol58no2.6
S. Law, M. Naseem, Anitha Roslan, Nirvikar Singh
This study examines the effects of business (enterprise) credit and household credit on economic performance in Malaysia. The World Bank’s Doing Business report ranked Malaysia at number one among developing countries in terms of ease of getting credit in the six consecutive years since 2008. The analysis is based on quantile regression estimations, using quarterly time series datasets from 1999: Q4 to 2019: Q4. The empirical findings reveal that business credit is positively associated with economic performance whereas household credit is an insignificant determinant of economic performance. We also consider the interaction between credit and institutional quality, an emerging key fundamental variable that determines economic performance. The results demonstrate that only the interaction term between business credit and institutions is statistically significant. In short, business credit outperforms household credit in promoting economic performance in Malaysia. The empirical findings are robust to alternative control variables and quantile regression estimation techniques.
{"title":"Business Credit, Household Credit and Economic Performance in Malaysia: A Quantile Regression Approach","authors":"S. Law, M. Naseem, Anitha Roslan, Nirvikar Singh","doi":"10.22452/mjes.vol58no2.6","DOIUrl":"https://doi.org/10.22452/mjes.vol58no2.6","url":null,"abstract":"This study examines the effects of business (enterprise) credit and household credit on economic performance in Malaysia. The World Bank’s Doing Business report ranked Malaysia at number one among developing countries in terms of ease of getting credit in the six consecutive years since 2008. The analysis is based on quantile regression estimations, using quarterly time series datasets from 1999: Q4 to 2019: Q4. The empirical findings reveal that business credit is positively associated with economic performance whereas household credit is an insignificant determinant of economic performance. We also consider the interaction between credit and institutional quality, an emerging key fundamental variable that determines economic performance. The results demonstrate that only the interaction term between business credit and institutions is statistically significant. In short, business credit outperforms household credit in promoting economic performance in Malaysia. The empirical findings are robust to alternative control variables and quantile regression estimation techniques.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2021-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48170425","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-05DOI: 10.22452/mjes.vol58no2.2
Aris Ananta, Evi Nurvidya Arifin, Ahman Irsan A Moeis
Studies on perceived financial adequacy (PFA) among older persons are mostly about developed countries. However, the ageing population is undergoing an even faster rate in developing countries. This paper fills this gap, by examining economic–social factors associated with PFA in Indonesia, a developing country. The analysis uses statistics derived from three nationwide surveys conducted in 2015, enriched with insights on retirement income and retirement age derived from two online surveys, conducted in 2016/2017 and 2018. The result shows consistency in the pattern of objective income and PFA. This paper also finds that intensity of working and flexibility in working are positively associated with PFA. Better health and better living environment are positively associated with PFA. Finally, social assistance is negatively related to PFA. It reveals that older persons may not have been able to maintain the standard of living they had before retirement. Workers (future retirees) may want much higher retirement income and work longer as working is still the only reliable source of financial support in old age. It therefore recommends that the retirement age is raised, health is improved, decent living environment is enhanced, and the government continues with social assistance programmes.
{"title":"Perceived Financial Adequacy in Old Age: A Case Study in Indonesia","authors":"Aris Ananta, Evi Nurvidya Arifin, Ahman Irsan A Moeis","doi":"10.22452/mjes.vol58no2.2","DOIUrl":"https://doi.org/10.22452/mjes.vol58no2.2","url":null,"abstract":"Studies on perceived financial adequacy (PFA) among older persons are mostly about developed countries. However, the ageing population is undergoing an even faster rate in developing countries. This paper fills this gap, by examining economic–social factors associated with PFA in Indonesia, a developing country. The analysis uses statistics derived from three nationwide surveys conducted in 2015, enriched with insights on retirement income and retirement age derived from two online surveys, conducted in 2016/2017 and 2018. The result shows consistency in the pattern of objective income and PFA. This paper also finds that intensity of working and flexibility in working are positively associated with PFA. Better health and better living environment are positively associated with PFA. Finally, social assistance is negatively related to PFA. It reveals that older persons may not have been able to maintain the standard of living they had before retirement. Workers (future retirees) may want much higher retirement income and work longer as working is still the only reliable source of financial support in old age. It therefore recommends that the retirement age is raised, health is improved, decent living environment is enhanced, and the government continues with social assistance programmes.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2021-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43176783","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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