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The current study estimates threshold levels of the public debt-to-gross domestic product (GDP) ratio and the budget deficit for 106 developing and 36 developed countries from 1996 to 2018. A PCA-based fiscal sustainability indicator is also constructed and a dynamic panel threshold regression is employed. The main findings reveal a threshold effect in the public debt-to-GDP ratio and budget deficit fiscal sustainability nexus. The public debt-to-GDP ratio and budget deficit are beneficial in maintaining fiscal sustainability at lower or upper threshold levels in different institutional indicators. The highest threshold level of the public debt-to-GDP ratio was 59.56% for developed countries and 64.87% for developing countries. The highest threshold level of budget deficit-to-GDP ratio was 0.41% for developed countries and 3.34% for developing countries. Three institutional indicators contribute significantly to the threshold estimation: regulatory quality, the rule of law and control of corruption. Policymakers are advised to maintain certain threshold points to ensure a fiscally sustainable level. The quality of law enforcement and control of corruption should also be improved.

The current study estimates threshold levels of the public debt-to-gross domestic product (GDP) ratio and the budget deficit for 106 developing and 36 developed countries from 1996 to 2018. A PCA-based fiscal sustainability indicator is also constructed and a dynamic panel threshold regression is employed. The main findings reveal a threshold effect in the public debt-to-GDP ratio and budget deficit fiscal sustainability nexus. The public debt-to-GDP ratio and budget deficit are beneficial in maintaining fiscal sustainability at lower or upper threshold levels in different institutional indicators. The highest threshold level of the public debt-to-GDP ratio was 59.56% for developed countries and 64.87% for developing countries. The highest threshold level of budget deficit-to-GDP ratio was 0.41% for developed countries and 3.34% for developing countries. Three institutional indicators contribute significantly to the threshold estimation: regulatory quality, the rule of law and control of corruption. Policymakers are advised to maintain certain threshold points to ensure a fiscally sustainable level. The quality of law enforcement and control of corruption should also be improved.

This study empirically investigates the effect of innovation on economic growth using the neoclassical economic growth model. Embarking from the traditional labour growth, physical capital and human capital framework, innovation is postulated to be the main driver for robust economic growth. Using time series techniques, we discover very attention-grabbing findings that highlight the impact of innovation on economic growth for Malaysia. First, the innovation measured by the quantity of a total number of a patent application is statistically insignificant. The result is robust for various innovation measurements, including total local patent application and total foreign patent application. Interestingly, switching to total patent grant instead of a total number of patent application (local or foreign), the empirical result shows a significant impact on economic growth. The finding indirectly reveals the crucial impact of quality innovation rather than the quantity concern. Neglecting both quality and the commercialisation process of these new technologies may not solve the rigidity of knowledge commercialisation paradox. Finally, we test for the prominent institutional quality in mediating economic growth under a knowledge-based economy. The interaction between institutional quality and the total patent grant has significantly accelerated the role of innovation channel to economic growth. The empirical findings imply that inadequacy of innovative technology flow over the long term has a detrimental effect on national innovative capacity. Thus, the innovation-economic growth nexus needs to be complemented with a good institutional quality framework, skilled human capital and broader networking to commercialise the innovative product to ensure that the innovation activities promote economic growth.

This study empirically investigates the effect of innovation on economic growth using the neoclassical economic growth model. Embarking from the traditional labour growth, physical capital and human capital framework, innovation is postulated to be the main driver for robust economic growth. Using time series techniques, we discover very attention-grabbing findings that highlight the impact of innovation on economic growth for Malaysia. First, the innovation measured by the quantity of a total number of a patent application is statistically insignificant. The result is robust for various innovation measurements, including total local patent application and total foreign patent application. Interestingly, switching to total patent grant instead of a total number of patent application (local or foreign), the empirical result shows a significant impact on economic growth. The finding indirectly reveals the crucial impact of quality innovation rather than the quantity concern. Neglecting both quality and the commercialisation process of these new technologies may not solve the rigidity of knowledge commercialisation paradox. Finally, we test for the prominent institutional quality in mediating economic growth under a knowledge-based economy. The interaction between institutional quality and the total patent grant has significantly accelerated the role of innovation channel to economic growth. The empirical findings imply that inadequacy of innovative technology flow over the long term has a detrimental effect on national innovative capacity. Thus, the innovation-economic growth nexus needs to be complemented with a good institutional quality framework, skilled human capital and broader networking to commercialise the innovative product to ensure that the innovation activities promote economic growth.

Kertas ini bertujuan untuk mengkaji kesan keterangkuman kewangan terhadap pertumbuhan firma dalam kalangan firma kecil, sederhana dan besar (275 buah firma) di negara Malaysia dan Indonesia dengan menggunakan teknik penganggaran regresi ambang keratan rentas. Tahap keterangkuman kewangan diukur berdasarkan agihan perkhidmatan kewangan merentasi firma iaitu akses kepada kredit. Keputusan kajian mendapati wujud kesan tidak monotonik dalam hubungan antara keterangkuman kewangan dan pertumbuhan firma, yang mana kesan keterangkuman kewangan terhadap pertumbuhan firma hanya signifikan dan positif di bawah tahap ambang. Implikasi dasar daripada kajian ini mencadangkan pemilik firma dan institusi kewangan perlu mengekang pengagihan akses kepada kredit supaya berada dalam lingkungan nilai optimum atau tahap ambang untuk menjamin pertumbuhan firma.

This study aims to analyze the dynamics relationship between exchange rates and economic growth in four ASEAN countries; Malaysia, Indonesia, Singapore and Thailand. The study focuses on the effect of exchange rate volatility on growth through trade channels by investigating the effect of interaction between exchange rate volatility and export. Quarterly data from 1984 to 2013 together with two exchange rate volatility series i.e. conditional and non-conditional is generated from exponential generalized autoregressive conditional heteroskedasticity (EGARCH) model and moving average of standard deviation are used. The relationship is estimated using dynamic ordinary least squares method (DOLS) of Stock and Watson (1993). The results suggest that the exchange rate volatility does affect economic growth in all ASEAN countries through international trade. Interestingly, the study found that the positive effect of export is capable in changing the direction of the relationship especially for countries that are able to reduce the negative impact of exchange rates volatility through diversification of trade policy.

Inspired by increasing evidence of nonlinear relationship of exchange rate and the importance to integrate the role of institutions, we have estimated the threshold value of exchange rate volatility in analyzing the relationship of exchange rate volatility, institutions and growth. The study is conducted on Malaysia, using quarterly data from 1984 to 2013. Further, the non-monotonicity relationship is analyzed by employing threshold regression adapted from Hansen (2000). The results suggest that there is an evidence of threshold effect in the relationship between exchange rate volatility and economic growth. Interestingly, the study finds that the negative effect of exchange rate volatility is reduced for countries with good institutions. The negative effect is effective only after certain level of volatility is archived. In conclusion, the study shows that the volatility of the exchange rate adversely affect economic growth and the effects vary according to the level of volatility, however good quality of institution is able to reduce the negative impact on economic growth.

Developing countries face a dilemma: to have either a stringent environmental policy that may lead to less foreign direct investment (FDI) or a less stringent environmental policy but more FDI through which economic growth may occur. Motivated by this paradox, it is necessary to examine the dynamic relationship between FDI, pollution control and corruption to suggest a mechanism that may be effective in combating the pollution haven effect. Using dynamic panel Generalised Method of Moments (GMM) estimation for 110 countries from 2005 to 2012, the findings suggest that the stringency in environmental control alone has had a negative effect on FDI, and at the same time, high levels of corruption have attracted FDI inflows. Interestingly, in contrast to previous findings, our results show that high stringency in environmental control coupled with low levels of corruption has attracted significantly more FDI inflows. In other words, ethical institutions could nullify the negative effect of stringency in pollution control to FDIs. This finding, besides its robustness to various environmental stringency measures, is a potential answer to the pollution haven effect for developing countries.

This paper attempts to provide a probable answer to a longstanding resource curse puzzle; i.e., why resource-rich nations grow at a slower rate compared to less fortunate ones. Using an innovative threshold estimation technique, the empirical results reveal that there is a threshold effect in the natural resources – economic growth relationship. We find that the impact of natural resources is meaningful to economic growth only after a certain threshold point of institutional quality has been attained. The results also shed light on the fact that the nations that have low institutional quality depend heavily on natural resources while countries with high quality institutions are relatively less dependent on natural resources to generate growth.

This paper attempts to provide a probable answer to a longstanding resource curse puzzle; i.e., why resource-rich nations grow at a slower rate compared to less fortunate ones. Using an innovative threshold estimation technique, the empirical results reveal that there is a threshold effect in the natural resources – economic growth relationship. We find that the impact of natural resources is meaningful to economic growth only after a certain threshold point of institutional quality has been attained. The results also shed light on the fact that the nations that have low institutional quality depend heavily on natural resources while countries with high quality institutions are relatively less dependent on natural resources to generate growth.

Previous literatures on both studies of pollution haven and FDI-corruption nexus have produced inconclusive results. This study uses Generalized Method of Moments (GMM) to address potential endogeneity of independent variables and country-specific effects issues when assessing the relationship between foreign direct investment (FDI), stringency of environmental regulations and corruption. FDI inflows are found to be discouraged by stricter environmental regulations and high level of corruption will induce FDI. Surprisingly, we find new evidence that both effects are changed after each of them exceeds threshold levels. Countries have to pass the threshold levels in order to gain positive impact of both stricter regulations and low level of corruption.

Previous literatures on both studies of pollution haven and FDI-corruption nexus have produced inconclusive results. This study uses Generalized Method of Moments (GMM) to address potential endogeneity of independent variables and country-specific effects issues when assessing the relationship between foreign direct investment (FDI), stringency of environmental regulations and corruption. FDI inflows are found to be discouraged by stricter environmental regulations and high level of corruption will induce FDI. Surprisingly, we find new evidence that both effects are changed after each of them exceeds threshold levels. Countries have to pass the threshold levels in order to gain positive impact of both stricter regulations and low level of corruption.

This paper examines the relationship between natural resources and financial development using non-dynamic panel threshold analysis. This paper contributes to the natural resource curse (NRC) literature in three main areas. First, we focus on the relationship between resource abundance and financial development which is rarely discussed in the NRC literature. Second, we suppose that the relationship between resource abundance and financial development may not necessarily monotonic. It is because many relationships between economic variables are not linear throughout time or space due to natural cycle of economics forces. Therefore it might be the case that at one level of natural resources, the effect to financial development is negative while at another level the effect might be positive. Third, development of social capital seems to be an important mechanism for nullifying the NRC paradox. Employing an endogenous non-dynamic panel threshold estimation technique, we find four important results; first, the relationship between natural resource and financial development is non-monotonic; second, human development contributes positively to the financial development; third, the existence of NRC hypothesis in the finance-resource nexus is depending on the level of human development. Low human development economies experience negative contribution of natural resources to financial development, while this relationship is not applicable for high human development economies.

The main objective of this paper is to reinvestigate the relationship between liberalization and returns volatility by considering different level of economic fundamentals and level of openness. The real impact of financial liberalization is expected to vary across countries with different macroeconomic fundamentals and level of liberalization. This study is different from previous studies because we do not impose priori linear restriction on the estimation. Employing endogenous threshold estimation methods, our finding shows that the relationship between liberalization and returns volatility is nonlinear and the negative impact of liberalization can be annulled for countries with strong and stable government.

The main objective of this paper is to reinvestigate the relationship between liberalization and returns volatility by considering different level of economic fundamentals and level of openness. The real impact of financial liberalization is expected to vary across countries with different macroeconomic fundamentals and level of liberalization. This study is different from previous studies because we do not impose priori linear restriction on the estimation. Employing endogenous threshold estimation methods, our finding shows that the relationship between liberalization and returns volatility is nonlinear and the negative impact of liberalization can be annulled for countries with strong and stable government.

This paper examines the relationship between natural resources and financial development using non-dynamic panel threshold analysis. This paper contributes to the natural resource curse (NRC) literature in three main areas. First, we focus on the relationship between resource abundance and financial development which is rarely discussed in the NRC literature. Second, we suppose that the relationship between resource abundance and financial development may not necessarily monotonic. It is because many relationships between economic variables are not linear throughout time or space due to natural cycle of economics forces. Therefore it might be the case that at one level of natural resources, the effect to financial development is negative while at another level the effect might be positive. Third, development of social capital seems to be an important mechanism for nullifying the NRC paradox. Employing an endogenous non-dynamic panel threshold estimation technique, we find four important results; first, the relationship between natural resource and financial development is non-monotonic; second, human development contributes positively to the financial development; third, the existence of NRC hypothesis in the finance-resource nexus is depending on the level of human development. Low human development economies experience negative contribution of natural resources to financial development, while this relationship is not applicable for high human development economies.

The aim of this study is to re-examine the well-known empirical puzzle of uncovered interest parity (UIP) for emerging market economies with different prediction time horizons. The empirical results obtained using dynamic panel and time series techniques for monthly data from January 1995 to December 2009 eventually show that the panel data estimates are more powerful than those obtained by applying individual time series estimations and the significant contribution of the exchange rate prediction horizons in determining the status of UIP. This finding reveals that at the longer time horizon, the model has better econometric specification and thus more predictive power for exchange rate movements compared to the shorter time period. The findings can also be a signalling of well-integrated currency markets and a reliable guide to international investors as well as for the orderly conduct of monetary authorities.

This paper attempts to provide a probable answer to a longstanding resource curse puzzle i.e. why resource rich nations grow at a slower rate compare to the less fortunate one. Using an innovative threshold estimation technique, the empirical results reveal that there is a threshold effect in the natural resources – economic growth relationship. We find that the impact of natural resources are meaningful to economic growth only after a certain threshold point of institutional quality has been attained. The results also shed light on the fact that the nations that have low institutional quality depend much on natural resources while countries with high quality institution are relatively less dependent to natural resources to generate growth.

This paper attempts to provide a probable answer to a longstanding resource curse puzzle i.e. why resource rich nations grow at a slower rate compare to the less fortunate one. Using an innovative threshold estimation technique, the empirical results reveal that there is a threshold effect in the natural resources – economic growth relationship. We find that the impact of natural resources are meaningful to economic growth only after a certain threshold point of institutional quality has been attained. The results also shed light on the fact that the nations that have low institutional quality depend much on natural resources while countries with high quality institution are relatively less dependent to natural resources to generate growth.

This paper analyses the short and long run dynamic interrelationship among four emerging equity markets (Korea, Taiwan, Malaysia and Thailand) and two Asian major equity markets (Japan and Hong Kong). The empirical investigation is conducted in two diferent periods from 1988 to 1991 (preliberalisation) and 1992 to 1997 (post-liberalisation) to investigate the impact of financial reforms and the opening up of the Asian markets. The empirical evidence shows that financial reforms have an impact on the cointegrating relationships between the Asian markets are closely linked with Japan, Hong Kong and among themselves over the post-liberalisation era.

The main purpose of this thesis is to assess the impact of removal of financial impediments on the ASIAN emerging equity markets. In the recent years the ASIAN countries have attempted to promote economic growth by taking steps to liberalise their domestic financial systems and removing restriction in international capital flows. countries, greater role in their financial markets. An important effect of financial liberalisation policies is the impact on the degree of integration between the emerging markets and the world equity markets. If equity markets are highly integrated, it implies that a given country's market cannot effectively insulate from foreign influences. linkages of the equity markets in the region with the major world markets by utilising the lohansen-luse tests, data is used in the analysis covering the period from January 1988 to January 1997. The ASIAN emerging markets selected include Malaysia, South Korea, Taiwan and Thailand while Hong Kong, Japan and the US are considered as the major world markets in vector autoregressive (VAR) model. The empirical evidence obtained from this study suggests the following. First, market liberalisation appears to have significant impact on all the equity markets. Analysis on iterative Johansen tests, sub-sample analysis and CUSUM tests indicate a possible structural break in the long run relationship among the emerging stock markets and the major exchange markets. Second, national stock markets are becoming more interdependent with the US, Japan and Hong Kong providing the link in the interdependence as one move towards the present liberalise system. Finally, the individual markets are all adjusting more rapidly to the equilibrium paths or stationary fundamental forces as one move towards recent past, and shocks to the system are becoming more persistent in the 1990's. The results of this study have some important policy conclusions. First, effective and efficient diversification of securities portfolios among

The main purpose of this thesis is to assess the impact of removal of financial impediments on the ASIAN emerging equity markets. In the recent years the ASIAN countries have attempted to promote economic growth by taking steps to liberalise their domestic financial systems and removing restriction in international capital flows. countries, greater role in their financial markets. An important effect of financial liberalisation policies is the impact on the degree of integration between the emerging markets and the world equity markets. If equity markets are highly integrated, it implies that a given country's market cannot effectively insulate from foreign influences. linkages of the equity markets in the region with the major world markets by utilising the lohansen-luse tests, data is used in the analysis covering the period from January 1988 to January 1997. The ASIAN emerging markets selected include Malaysia, South Korea, Taiwan and Thailand while Hong Kong, Japan and the US are considered as the major world markets in vector autoregressive (VAR) model. The empirical evidence obtained from this study suggests the following. First, market liberalisation appears to have significant impact on all the equity markets. Analysis on iterative Johansen tests, sub-sample analysis and CUSUM tests indicate a possible structural break in the long run relationship among the emerging stock markets and the major exchange markets. Second, national stock markets are becoming more interdependent with the US, Japan and Hong Kong providing the link in the interdependence as one move towards the present liberalise system. Finally, the individual markets are all adjusting more rapidly to the equilibrium paths or stationary fundamental forces as one move towards recent past, and shocks to the system are becoming more persistent in the 1990's. The results of this study have some important policy conclusions. First, effective and efficient diversification of securities portfolios among

Green home concept is an effort made to reduce the impacts of pollution, saving energy and educate Malaysian people with sustainable lifestyle. The aim of this study was to examine consumers' preference on green home attributes in Peninsular Malaysia defined by carbon dioxide (C02) emission, rainwater harvesting system, natural air ventilation, and greeneries area. Self-administered questionnaires were used to obtain· necessary data from 300 selected households through stratified random sampling in Kajang and Bandar Baru Bangi, using questionnaires through face to face. The choice model technique was applied to estimate the non market values for this study. The results show that all the attributes are tested significant in generic form, while only three are tested significant in label form. Two attributes are tested insignificant which is rainwater harvesting system and greeneries area in label form. The estimated implicit values for green home attributes based on Multinomial Logit regression shows that natural indoor air ventilation is the most important attribute. This is followed by greeneries area, carbon dioxide (C02) emission and rainwater harvesting system. The findings also reveal that Malaysian society preferred green home as compared to conventional housing based on the attributes. Finally, the study highlighted several recommendations for households, developers and government to stimulate the green home development in Malaysia. Future work should examine the possibility of other attributes effect to consumers' sustainable lifestyle.

Green home concept is an effort made to reduce the impacts of pollution, saving energy and educate Malaysian people with sustainable lifestyle. The aim of this study was to examine consumers' preference on green home attributes in Peninsular Malaysia defined by carbon dioxide (C02) emission, rainwater harvesting system, natural air ventilation, and greeneries area. Self-administered questionnaires were used to obtain· necessary data from 300 selected households through stratified random sampling in Kajang and Bandar Baru Bangi, using questionnaires through face to face. The choice model technique was applied to estimate the non market values for this study. The results show that all the attributes are tested significant in generic form, while only three are tested significant in label form. Two attributes are tested insignificant which is rainwater harvesting system and greeneries area in label form. The estimated implicit values for green home attributes based on Multinomial Logit regression shows that natural indoor air ventilation is the most important attribute. This is followed by greeneries area, carbon dioxide (C02) emission and rainwater harvesting system. The findings also reveal that Malaysian society preferred green home as compared to conventional housing based on the attributes. Finally, the study highlighted several recommendations for households, developers and government to stimulate the green home development in Malaysia. Future work should examine the possibility of other attributes effect to consumers' sustainable lifestyle.