Macroeconomic Variables and In-Migration in Malaysia’s Developed States

Nor Ermawati Hussain (), Mohd Shahidan Shaari (), Noor Haslina Mohamad Akhir () and Diana Nabila Abdullah Chau ()
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Nor Ermawati Hussain: School of Social and Economic Development Universiti Malaysia Terengganu 21030 Kuala Nerus Terengganu MALAYSIA
Mohd Shahidan Shaari: School of Business Innovation and Technopreneurship Universiti Malaysia Perlis Pengkalan Jaya, Jalan alor-Setar-Kangar 01000 Kangar Perlis MALAYSIA
Noor Haslina Mohamad Akhir: School of Social and Economic Development Universiti Malaysia Terengganu 21030 Kuala Nerus Terengganu MALAYSIA
Diana Nabila Abdullah Chau: Faculty of Business, Economicsand Accountancy Universiti Malaysia Sabah Jalan UMS, 88400 Kota Kinabalu Sabah MALAYSIA

Jurnal Ekonomi Malaysia, 2018, vol. 52, issue 1, 225-241

Abstract: Nowadays, in-migration is one of the important phenomena that affects urbanisation and development in the destination area. Indirectly, it will cause the rapid growth of the population, leads to overcrowding, competition for jobs, unemployment, poverty and the formation of new towns in the destination area especially urban areas. However, for rural destination areas, in-migration of professionals is important to stimulate economic growth. Hence, the objective of this study is to forecast and analyze the effect of macroeconomic variables on in-migration into developed states in Malaysia. Using the annual time series data from 1980 to 2012, Autoregression Distributed Lag (ARDL) and Granger-causality test were conducted. The findings have found that long run and short run relationships exist between in-migration and macroeconomic factors for developed states. The forecasting until year 2020 expects that in-migration will increase in Perak and Penang. Investment factors that are concentrated in the developed states also affect the population’s decision to migrate especially in Kuala Lumpur and Selangor. To promote the economic growth, foreign direct investment and domestic investment for development sector should be intensified to improve household incomes in the region. Besides, Perak and Selangor need to improve the existing policies to ensure that there is an increase in foreign direct investment and domestic investment.

Keywords: In-migration; forecasting; investment; macroeconomics; overcrowding (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ukm:jlekon:v:52:y:2018:i:1:p:225-241

DOI: 10.17576/JEM-2018-5201-19

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