Full-text resources of CEJSH and other databases are now available in the new Library of Science.
Visit https://bibliotekanauki.pl

PL EN


2018 | Volume 14 | Issue 1 | 29-42

Article title

Determinants of employees provident fund in Malaysia: Potential factors to jeopardize the EPF sustainability

Content

Title variants

Languages of publication

EN

Abstracts

EN
The topic of EPF sustainability has gained considerable attentions among the governments worldwide. In the wake of growing elderly population, improving life expectancy and declining mortality rate particularly in Malaysia over the years, concerns arise on the EPF’s failure to fully commit the retirement incomes provision to the elderly population in the post-retirement periods. Specifically, this paper examines the short run and long run relationships between EPF balances and its determinants; investment earnings, nominal income, elderly population, life expectancy and mortality rate from 1960 to 2014. Of the findings, elderly population and mortality rate are unfolded to represent key deterrents of EPF balances, which acts as the proxy for the EPF sustainability, both in the short run and long run cycles. Thus, new improvements to the existing EPF scheme are recommended as means to alleviate the poverty problems among the elderly population besides addressing other economic and social fronts.

Year

Volume

Issue

Pages

29-42

Physical description

Dates

published
2018-01-24

Contributors

  • School of Economics, Finance and Banking, Universiti Utara Malaysia, Malaysia
author
  • School of Economics, Finance and Banking, Universiti Utara Malaysia, Malaysia

References

  • Adam, A. M., Agyapong, D., & Gyamfi, E. N. (2010). Dynamic macroeconomic convergence in the West Africa Monetary Zone, International Business and Management, 1(1), 30-42.
  • Adamu, P. A., & Oriakhi, D. E. (2013). The impact of foreign direct investment on economic growth in the economic community of West African states. African Journal of Economic Policy, 20(2), 89-114.
  • Adeleke, A. I. (2014). FDI-Growth nexus in Africa: does governance matter? Journal of Economic Development, 39(1), 111-135.
  • Ajide, K., & Raheem, I. D. (2016). Institutions-FDI nexus in ECOWAS countries. Journal of African Business, 17(3), 319-341 doi: 10.1080/15228916.2016.1180778
  • Ajide, K. B., & Osode, O. E. (2017). Does FDI dampen or magnify output growth volatility in the ECOWAS region? African Development Review, 29(2), 211-222. doi: 10.1111/1467-8268.12251
  • Ajide, K., Adeniyi, O., & Raheem, I. (2014). does governance impact on the foreign direct investment-growth nexus in Sub-Saharan Africa? Zagreb International Review of Economics and Business, 17(2), 71-81. http://hrcak.srce.hr/129469
  • Akinlo, A. (2004). Foreign direct investment and growth in Nigeria: an empirical investigation. Journal of Policy Modeling, 26(5), 627-639. doi:10.1016/j.jpolmod.2004.04.011
  • Alege, P.O., & Ogundipe A. A. (2013). Foreign direct investment and economic growth in ECOWAS: a system-GMM approach. Covenant Journal of Business and Social Sciences (CJBSS), 5(1), 1-22
  • Asiedu, E. (2002). On the determinants of foreign direct investment to developing countries: is Africa different? World Development, 30(1), 107-119. doi:10.1016/S0305-750X(01)00100-0
  • Aye, G. C., Gadinabokao, O. A., & Gupta, R. (2017). Does the SARB respond to oil price movements? Historical evidence from the frequency domain, Energy Sources, Part B: Economics, Planning, and Policy, 12(1), 40-46, DOI: 10.1080/15567249.2014.966927
  • Bengoa, M., & Sanchez-Robles, B. (2003). Foreign direct investment, economic freedom and growth: new evidence from Latin America. European Journal of Political Economy, 19(3), 529-545. doi:10.1016/S0176-2680(03)00011-9
  • Biørn, E., & Han, X.(2017). Revisiting the FDI impact on GDP growth in errors-in-variables models: a panel data GMM analysis allowing for error memory. Empir Econ, 53(4), 1379-1398. doi:10.1007/s00181-016-1203-4
  • Bornschier, V. (1980). Multinational corporations and economic growth: a cross-national test of the decapitalisation thesis. Journal of Development Economics, 7(2), 115-135. doi:10.1016/0304-3878(80)90004-8
  • Breitung, J., & Candelon, B. (2006). Testing for short-and long-run causality: A frequency-domain approach. Journal of Econometrics, 132(2), 363-378. doi: 10.1016/j.jeconom.2005.02.004
  • Flora P.,& Agrawal G. (2017). FDI and economic growth nexus for the largest FDI recipients in Asian emerging economies: a panel co-integration analysis. In Raghunath S., Rose E. (Eds.), International Business Strategy. London: Palgrave Macmillan. Doi:10.1057/978-1-137-54468-1_12
  • Aye, G. C., Gadinabokao, O. A., & Gupta, R. (2017). Does the SARB respond to oil price movements? Historical evidence from the frequency domain. Energy Sources, Part B: Economics, Planning, and Policy, 12(1), 40-46, DOI: 10.1080/15567249.2014.966927
  • Hansen, H., & Rand, J. (2006). On the causal links between FDI and growth in developing countries. The World Development, 29(1), 21-41. doi: 10.1111/j.1467-9701.2006.00756.x
  • Lucas, L. (1990). Why doesn’t Capital Flow from Rich to Poor Countries. AEA papers and Proceedings, 80(2), 92-96. doi: 10.3386/w11901
  • Lucas, R. (1988). On the mechanics of economic development, Journal of Monetary Economics, 22(1), 3-42. doi: 10.1016/0304-3932(88)90168-7
  • Mankiw, N. G., Romer, D., & Weil, D. N. (1992). A contribution to the empirics of economic growth. The quarterly journal of economics, 107(2), 407-437. doi: 10.3386/w3541
  • O’ Hearn, D. (1990). TNCs, intervening mechanisms and economic growth in Ireland: a longitudinal test and extension of Bornschier model. World Development, 18(1), 417- 429. doi: 10.1016/0305-750X(90)90127-J
  • Pesaran, M. H., Shin, Y., & Smith, R. J. (2001) Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16, 289-326. doi:10.1002/jae.616
  • Ram, R. & Zhang, K. H. (2002). Foreign direct investment and economic growth: evidence from cross-country data for the 1990s. Economic Development and Cultural Change, 51(1), 205-215. doi:10.1086/345453
  • Ramirez, M. D. (2000). Foreign direct investment in Mexico: a cointegration analysis. The Journal of Development Studies, 37(1), 138-162. doi: 10.1080/713600062
  • Romer, M. (1986). Increasing returns and long- run growth. Journal of Political Economy, 94(5). 1002-1037. doi: 10.1086/261420
  • Romer, M. (1987). Growth based on increasing returns due to specialization. American Economic Review, 77(1), 56-62. http://www.jstor.org/stable/1805429
  • Singh, P. G. A. (2016). Causal nexus between foreign direct investment and economic growth: a study of BRICSs nations using vecm and granger causality test, Journal of Advances in Management Research, 13(2), 1-27. doi: 10.1108/JAMR-04-2015-0028
  • Solow, R. M. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics, 70(1), 65-94. doi.org/10.2307/1884513
  • Sothan, S. (2017). Causality between foreign direct investment and economic growth for Cambodia. Cogent Economics & Finance, 5(1), 1-13. doi: 10.1080/23322039.2016.1277860
  • Stoneman, C. (1975). Foreign capital and economic growth. World Development, 3(1), 11-26.
  • Temiz, D., & Gokmen, A. (2014). FDI inflow as an international business operation by MNCs and economic growth: an empirical study on Turkey. International Business Review, 23(1), 145-154. doi: 10.1016/j.ibusrev.2013.03.003
  • Toda, H. Y., & Yamamoto, T (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66(1), 225-250. doi: 10.1016/0304-4076(94)01616-8

Document Type

Publication order reference

Identifiers

YADDA identifier

bwmeta1.element.mhp-8b907c0f-d776-48ac-94b8-fa6e729a967e
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.