Food Industry Malaysia
Vol. 2, No. 3
International Business Research
An ARDL Approach in Food and Beverages Industry Growth Process in Malaysia
Rohana Kamaruddin Department of Economics, Faculty of Business Management, Universiti Teknologi Mara, Malaysia Tel: 60-3-5544-4935 E-mail: rohana070@salam.uitm.edu.my / rohana77@hotmail.com Kamaruzaman Jusoff (Corresponding author) Faculty of Forestry, Universiti Putra Malaysia, 43400 Serdang, Selangor. Malaysia. Tel: 60-3-8946-7176 E-mail: kjusoff@yahoo.com
The research is financed by Universiti Teknologi MARA (Sponsoring information) Abstract The study examines the process of growth in the value added of food and beverages industry in Malaysia. The per capita income, population, skill and export are likely to exhibit long run relationship with the value added growth of this industry. Using the newly developed autoregressive distributed lag (ARDL) by Pesaran et al, (1995,1997, 1999 and 2000), a long run steady state equilibrium relationship between the independent variables and the growth performances of food industries is detected. Specifically this study has shown that in addition to the size of the population and percapita income, export are closely related to the growth of the value added of food and beverages industry. This empirical result would help Malaysia aspiration of becoming a hub for the halal food industry a reality. Keywords: Value added, Error correction model, Halal food, Food and beverages, Growth 1. Introduction The manufacturing sector is the fastest growing sector and the dominant force in Malaysia’s growth experience. The structural transformation in the Malaysian economy has turned the country from an exporter of primary commodities into an exporter of high value added manufactured products. During the early process of development in the Malaysian economy, there occurred a dramatic decline of the proportion of GDP generated by the primary sector. It was counterbalanced by a dramatic increase in the share of
International Business Research
An ARDL Approach in Food and Beverages Industry Growth Process in Malaysia
Rohana Kamaruddin Department of Economics, Faculty of Business Management, Universiti Teknologi Mara, Malaysia Tel: 60-3-5544-4935 E-mail: rohana070@salam.uitm.edu.my / rohana77@hotmail.com Kamaruzaman Jusoff (Corresponding author) Faculty of Forestry, Universiti Putra Malaysia, 43400 Serdang, Selangor. Malaysia. Tel: 60-3-8946-7176 E-mail: kjusoff@yahoo.com
The research is financed by Universiti Teknologi MARA (Sponsoring information) Abstract The study examines the process of growth in the value added of food and beverages industry in Malaysia. The per capita income, population, skill and export are likely to exhibit long run relationship with the value added growth of this industry. Using the newly developed autoregressive distributed lag (ARDL) by Pesaran et al, (1995,1997, 1999 and 2000), a long run steady state equilibrium relationship between the independent variables and the growth performances of food industries is detected. Specifically this study has shown that in addition to the size of the population and percapita income, export are closely related to the growth of the value added of food and beverages industry. This empirical result would help Malaysia aspiration of becoming a hub for the halal food industry a reality. Keywords: Value added, Error correction model, Halal food, Food and beverages, Growth 1. Introduction The manufacturing sector is the fastest growing sector and the dominant force in Malaysia’s growth experience. The structural transformation in the Malaysian economy has turned the country from an exporter of primary commodities into an exporter of high value added manufactured products. During the early process of development in the Malaysian economy, there occurred a dramatic decline of the proportion of GDP generated by the primary sector. It was counterbalanced by a dramatic increase in the share of
References: (2004) 103 July, 2009 Table 5 V1 V2 V3 V4 V5 SL0G 2.6084*** (5.0374) -0.1814 (-0.22023) -0.2344** (-3.1612) -8.5483 (-1.3810) -4.2032*** (-38.9880)