Air And Water Pollutants Impact on Malaysia’s Manufacturing Productivity

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This study examines the impact of air and water pollutants (consisting of carbon dioxide (CO2) and organic water pollutant Biochemical Oxygen Demand (BOD) emissions in combination) on Malaysia's manufacturing sector productivity growth and the factors that determined its growth. Autoregressive method was carried out on time series data for the period 1970-2001 to estimate the manufacturing sector productivity growth. Two models were generated from the production functions to measure manufacturing sector productivity growth. The first is an extensive growth theory model and the second one is an intensive growth theory model. The extensive theory model had a gap that cast doubt in the results. A statistical analysis was provided to close this gap. Exclusion of externalities such as pollutant emissions created a deficiency in growth accounting models as those pollutant emissions were internalised in order to calculate the green total factor productivity. The results showed a slowdown in the contribution of Total Factor Productivity (TFP) growth and a negative impact of total pollutant emissions produced by the sector on productivity growth in general and TFP growth in particular in comparison with other productivity indictors of the sector.


Keywords: Malaysia, Air, Water, Pollutant Emissions, Economic Impact, Manufacturing Sector, Productivity Growth
Stream: Environmental Sustainability
Presentation Type: Paper Presentation in English
Paper: Air and Water Pollutants Impact on Malaysia’s Manufacturing Productivity


Professor Elsadig Musa Ahmed

Lecturer, Economics Unit, Faculty of Business and Law, Multimedia University
Melaka, Melaka, Malaysia

Dr. Elsadig Musa Ahmed is a lecturer at Economics unit of the faculty of Business and Law, Multimedia University, Melaka, Malaysia. He is currently teaching International Economic History, International Political Economy, East Asian Economies, Knowledge-based Economy, Malaysia and Knowledge Economy, Basic Economics, Economic Integration Regionalism, Microeconomics and Macroeconomics. He published so far number of papers in international refereed journals and conferences. He is supervising some Ph.D. and industrial training students and has also been an examiner to Ph.D., Master and final year project students. He is active member of World Assembly of Youth (WAY) and several associations. He is reviewer and an expert of the second Millennium Ecosystem Assessment report "Biodiversity and Human Well–being: A Synthesis Report for the Convention on Biological Diversity" He has also been a reviewer for many international, regional and local Journals and conferences such as (Economic Modelling, World Review of Science, Technology and Sustainable Development and International Journal of Economic Policy Studies). His research interests include productivity analysis, productivity and environment, development economics, economic growth and environment and knowledge-based economy.

Dr. Khalid Abdul Rahim

Professor, Faculty of Economics and Management, Universiti Putra Malaysia
Serdang, Selangor, Malaysia

Name Khalid Abdul Rahim, PhD
Position Professor, Deputy Dean (Graduate Studies and Student Affairs)
Department Hospitality and Recreation
E-Mail khalid@econ.upm.edu.my
Telephone + 603 8946 7733, 7653
Room A315.1, Deputy Dean (Graduate Studies and Student
Specialization Environmental Economics
Website http://econ.upm.edu.my/~khalid

Publication BOOK
Khalid Abdul Rahim. 2007. Trade and Sustainable Development Lessons From Malaysia's Experience. UPM, Press.

CHAPTER IN BOOK
Khalid Abdul Rahim. 2005. Managing Natural Wealth: Envoronment and Development in Malaysia In :(Ed., Vincent and Rozali), Water Pollution Control, Resource for the Future. Washington, DC. Pp. 319-349.

Elsadiq Musa Ahmed, Khalid Abdul Rahim, Zulkornain Yusop and Zakariah Abd Rashid. 2003. Impact of Dirty Fuel Consumption on Malaysia’s Manufacturing Productivity In :(Ed., Samsinar Md Sidin, Murali Sambasivan, Zaleha Mohd Noor and Mastura Yahya), Contemporary Issues in Economics. Prentice Hall, Pearson (M) Sdn. Bhd. Pp. Vol.1,186-201..

Nor Ghani Md Nor, Ahmad Zainuddin Abdullah and Khalid Abdul Rahim. 2001. Vertical Intergration and Stigler’s Hypothese:Evidence from Malaysian Manufacturing In :(Ed., Alias Radam and Azali Mohamed), Readings on Malaysian Economy Issues in Industry and Trade. Imagepac Print (M) Sdn. Bhd. Pp. 115-132.

JOURNAL
Wong Swee Kiong, Khalid Abdul Rahim, Mad Nasir Shamsudin and K. Kuperan. 2007. Export Market Competitiveness of Eco-Friendly Pepper Production in Malaysia. The ICFAI Journal of Environmental Economics, V(2):69-82.

Khalid Abdul Rahim. 2005. Market-Based Instruments for Environmental Protection: Piloting a Presumptive and Emissions Trading for Malaysian SMIs . International Journal of Business and Society, 6 (2) / July:1-36 .

Wong Swee Kiong, K. Kuperan and Khalid Abdul Rahim. 2004. The Economics of Water Supply in Sri Aman, Sarawak. International Journal of Business and Society, 5(2):54-71.

PROCEEDING
Khalid Abdul Rahim and Audrey Liwan. 2006. Harmonizing Trade and Environment Conflicts: Win, Lose or Draw. Proceedings of the 2nd International Borneo Business Conference, Kuching, Sarawak, pp. 386-398.

Wong Swee Kiong, Khalid Abdul Rahim, Mad Nasir Shamsudin and K. Kuperan. 2006. The Export Market Competitiveness of Eco-Friendly Pepper Production in Malaysia. Proceedings of the 2nd International Borneo Business Conference, Kuching, Sarawak, pp. 285-293..

Khalid Abdul Rahim. 2004. Trade and Environment Related Measures: Some Malaysian Experience. Proceedings of the PETA-BERNAS-KPM-FAMA on evaluation of the National Agricultural Policy, Bangi, pp. 117-148.

Khalid Abdul Rahim. 2004. Market-Based Instruments for Environmental Protection: Piloting a Presumptive Charge and Emissions Trading for Malaysian SMIs. Proceedings of the International Borneo Business Conference, Kota Kinabalu, Sabah, pp. 722-742.

Khalid Abdul Rahim. 2003. Resource Comsumption Allowance for Malaysian’s Tin . Proceedings of the 1st International Conference on Asian Academy of Applied Business,, pp. 840-858.

Elsadiq Musa Ahmed, Khalid Abdul Rahim, Zulkornain Yusop and Zakariah Abd Rashid. 2003. Economic Impact of Water Pollutant Emision Produced by Malaysian Manufacturing Sector on its Productivity Growth. Proceedings of the International Conference on Environrmental Management and Technology, Putrajaya, pp. 111-117.

Elsadiq Musa Ahmed and Khalid Abdul Rahim. 2003. The Knowlledge-based Economy Achievements through Malaysian Manufacturing Sector Productivity Growth. Proceedings of the 1st International Conference on Asian Academy of Applied Business, Kota Kinabalu, pp. 61.

Elsadiq Musa Ahmed, Khalid Abdul Rahim, Zulkornain Yusop and Zakariah Abd Rashid. 2003. Economic Impact of Dirty Fuel Consumed by Malaysia’s Manufacturing Sector on its Productivity Growth. Proceedings of the Malaysian Science and Technology Congress Synposium for Environrment, Biodiversity & Resource Management, Genting Hihglands, pp. 99-110.

Elsadiq Musa Ahmed, Khalid Abdul Rahim, Zakariah Abd Rashid and Zulkornain Yusop. 2002. Factors Determining the Malaysian Manufacturing Sector Productivity Growth. Proceedings of the Asia Pasific Economics & Business Conference, Kuching, Sarawak, pp. 816-824.

Wong Swee Kiong, K. Kuperan and Khalid Abdul Rahim. 2002. The Economic of Water Supply in Sri Aman, Malaysia. Proceedings of the Asia Pasific Economics & Business Conference, Kuching, Sarawak, pp. 183-189.

Elsadiq Musa Ahmed and Khalid Abdul Rahim. 2001. Economic Impact of CO2 Emision on Malaysia’s Manufacturing Sector Productivity Growth. Proceedings of the Faculty of Economics and Management Seminar, Pahang, pp. 259-280.

Ref: S08P0032