Labuan Bulletin of International Business & Finance (LBIBF)

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Volume 1, Number 1 (June 2003)

Measuring Technical and Scale Efficiency in the Credit Guarantee Corporation (Malaysia) Berhad: An Application of Non-Parametric Approach 1-11
Author:
Hway-Boon Ong, Muzafar Shah Habibullah, M. Azali and Alias Radam
Date:
17 April 2014

Abstract

This study is conducted to evaluate the efficiency of Credit Guarantee Corporation (CGC) in providing credit guarantee schemes to small and medium enterprises, SMEs. The efficiency evaluation of CGC is conducted for single output, two outputs and three outputs. The results suggest that CGC is most efficient in granting credit guarantees to three sectors of the economy than one and two sectors. The findings also suggest that both pure technical and scale inefficiency contributed to the inefficiency of CGC and pure technical inefficiency contributed slightly more than scale inefficiency. As such, CGC should consider reallocating its existing inputs as well as increasing the amount of credit guarantees granted to general business, manufacturing and agriculture sectors in order to achieve a reasonable level of efficiency.

Singapore’s Aggregate Import Demand Function: Southeast Asian Economies Compared 13-27
Author:
Tuck-Cheong Tang
Date:
17 April 2014

Abstract

The present study estimates an aggregate import demand function for a small-open economy, Singapore. The result from bounds test (Pesaran et al., 2001) revealed that the volume of import demanded and its determinants, namely real income and relative price are cointegrated. The long run aggregate import demand behaviour for Singapore is found to be income elastic (1.16) but price inelastic (-0.35). Other issue discussed in the present study is a comparative study for import demand behaviour of Singapore with other Southeast Asian economies (or ASEAN), comprising Indonesia, Malaysia, the Philippines and Thailand. This paper provides some relevant policy implications for those selected Southeast Asian economies.

A BDS Test of Random Walk in the Malaysian Stock Market 29-39
Author:
Kian-Ping Lim, Muzafar Shah Habibullah and Hock-Ann Lee
Date:
17 April 2014

Abstract

This study empirically investigates the random walk behaviour of Malaysia’s stock market. Recent breakthroughs pertaining to non-linear dynamics, coupled with the rapid acceleration in computer power, have made it possible to more robustly test for the random walk in financial and economic data. This has prompted researchers to re-examine the possibility of uncovering a more complex form of dependencies in the earlier observed random series. This study uses the non-linear Brock-Dechert-Scheinkman (BDS) test to examine whether the Malaysia’s stock return series are random walk with the property of being independent and identically distributed. The results reject overwhelmingly the hypothesis of random walk since some cycles or patterns show up more frequently than would be expected in a true random series. These results may have implications that the Malaysian stock market is inefficient in the weak form of efficient market hypothesis, if the underlying structure in this non-random series can be identified and profitably exploited. This remains an avenue for further research.

Can WOM Communication, Patronage Intention, and Complaining Behaviour, Predict Customer Retention And Loyalty? 41-51
Author:
Nelson Oly Ndubisi and Oswald Aisat Igau
Date:
17 April 2014

Abstract

Can behavioral intentions (such as word-of-mouth [WOM] communication, patronage intention, & complaining behavior) determine actual behavior (e.g. customer retention & loyalty) in the Malaysian Borneo banking sector? Answers to the question were sought through a field investigation of bank customers in Kota Kinabalu. A total of 539 customers participated in the survey, out of which 536 responses were usable. The results of the study provide strong support for patronage intentions, and complaining behavior to predict customer retention and loyalty, and a weaker support for WOM communication to predict it. It is concluded therefore that behavioral intentions is a predictor of actual behavior. Theoretical and managerial implications of the findings are discussed.

Financial Development and Economic Growth in Malaysia: A Re-Assessment from Bound-Test Approach 53-63
Author:
Chee-Keong Choong, Zulkornain Yusop, Siong-Hook Law and Khim-Sen Liew
Date:
17 April 2014

Abstract

This paper studies seven selected financial indicators representing various aspects of financial development, which are likely to exhibit long run relationship with economic growth in the Malaysian economy stemming from 1978 to 2000. Applying the newly developed unrestricted error correction model (UECM) proposed by Pesaran et al. (2001), we detect the existence of a long run steady state equilibrium relationship between the selected financial indicators and economic growth. Whereas, through variance decomposition analysis, we suggest that evolution of financial sector at different levels have different impacts in promoting economic growth. In particular, this study postulates that in addition to the evolution of the financial sector, the role of monetary policy and openness level of the country are also highly related to economic growth.

Foreign Direct Investment and Economic Growth: An Empirical Study on ASEAN-4 and China 65-78
Author:
Hock-Tsen Wong
Date:
17 April 2014

Abstract

ASEAN-4 and China have received high inflows of foreign direct investment (FDI) and experienced rapid and prolonged economic growth. This study aims to investigate whether FDI has contributed to the economic growth of these ASEAN-4 countries and China using panel data. The empirical estimation of the relationship between FDI and economic growth is based on an endogenous growth model. Furthermore, the study investigates whether FDI has crowded-in or crowded-out domestic investment. The results show that FDI has contributed to the economic growth of ASEAN-4 and China directly. In addition to that, human capital, domestic investment and openness are found to have a positive impact on economic growth. On the other related issue, there is no strong evidence to suggest that FDI has any impact on domestic investment. However, government consumption and financial development have contributed positively to domestic investment.

 
 
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