Ownership and technical efficiency in Malaysia's automotive industry: A stochastic frontier production function analysis

This article examines the direct effect of the extent of foreign ownership on technical efficiency in Malaysia's automotive industry by applying a stochastic frontier production function analysis to micro-panel data over the years 2000–2004. Technical efficiency in the overall automotive industry is positively related to the degree of vertical integration, the size of establishments in the respective sub-sectors, a higher quality of the work force, and a higher foreign ownership share in the establishment combined with higher net-import intensity. Foreign ownership and net-export intensity are not significant determinants of technical efficiency inthe parts sub-sector. Although majority foreign ownership is not allowed in the assembly sub-sector, this sub-sector is large, with asmall number of establishments generating scale economies in the automotive industry. The determinants of technical efficiency in the parts sub-sector show that foreign ownership per se does not enhance technical efficiency since other determinants like the degree of vertical integration and the size of establishments are significant determinants of technical efficiency.     

Matching of police and hospital road crash casualty records – a data-linkage study in Malaysia

Underreporting of road crashes hampers the development of appropriate road safety countermeasures in many countries. In this study, police and hospital records from road crash casualties in the Melaka Tengah district in Malaysia from 2014 were collected to determine their matching and reporting rates. Based on authentic personal identifiers from both types of records, Microsoft SQL was used to reveal how the matching rate varies due to multiple factors. The results showed that 311 cases (of 7625 hospital records) could be linked to both databases, yielding a 4.1% matching rate and a 4.7% police reporting rate. Both the reporting and matching rates increased with the level of injury severity. The significant underreporting in the police database showed that complementary data are necessary for enhancing the current official crash data records.     

Explaining Heterogeneity in the Effect of the Exchange Rate and Exchange Rate Volatility on Foreign Direct Investment: A Meta‐Analysis Approach

This study examines the effect of exchange rate and exchange rate volatility on foreign direct investment (FDI) by using a meta‐analysis. We filter out publication bias within the 1,329 estimates, pooled from 101 studies and employ Bayesian Model Averaging to reduce model uncertainty and explain the existing heterogeneity. The results reveal that the exchange rate system, estimation characteristics, and the modeling approach have an important and noticeable influence on the statistical significance and direction of the estimates. On one hand, the impact of exchange rate volatility is relatively lower in countries with higher trade openness, human capital and better protection of intellectual property rights. On the other hand, greater geographical distance and technology gap between the host and the home economy are associated with greater uncertainty and thus accentuate the negative causality between exchange rate volatility and FDI. Such sensitivities suggest that greater emphasis should be placed on reporting estimates of the impact of the exchange rate and its volatility on FDI across a variety of methodological characteristics and specification and estimation choices.     

Corporate governance mechanisms and performance： Analysis of Malaysian family and non-family controlled companies

Most study concentrating on family and non-family companies is conducted overseas with little research carried out in Malaysia. This study examined the impact of corporate governance mechanisms on family and non-family controlled companies＇ performance. The sample size of this study is 730 companies listed on Bursa Malaysia from 2003 to 2007. The findings reveal that corporate governance mechanisms influence the family and non-family controlled companies＇ performance. But not all corporate governance mechanisms are significant. The significant variables differ between family and non-family controlled companies. Thus, regulators need to be vigilant that family and non-family controlled companies practise differently and to set different code needed for each type of families.     

FDI productivity spillovers and the technology gap in Malaysia's electrical and electronic industries

This study measures the impact of indirect technology transfer through spillovers from foreign direct investment (FDI) on Malaysia's development of a ‘high‐tech’ sector, namely the electrical and electronic (E&E) industries. We estimate the total factor productivity (TFP) of establishments as a function of foreign presence within and across industries. Both the fixed assets and wages share of foreign establishments in a five‐digit ISIC (International Standard Industrial Classification) industry are used as measures of foreign presence. The estimations provide evidence of significantly negative (or insignificant) FDI vertical spillover effects and insignificant horizontal spillover effects on the TFP of domestic establishments. The positive (negative) coefficient of the interaction term between the forward (horizontal) spillover variable and the technology gap supports the ‘catching‐up’ (technology accumulation) hypothesis. The negative impact, even absence, of FDI spillover effects on TFP and the mixed evidence on the effects of interactions between FDI spillovers and the technology gap suggest that fine‐tuning of fiscal incentive schemes for FDI to arrive at positive net benefits may prove to be a daunting task in the Malaysian E&E industries.     

Website and email adoption by Malaysian hotels

This research note addresses two limitations of Internet diffusion studies by highlighting the importance of multivariate statistical analysis and including the element of time. The results support findings on the positive relationship between two hotel characteristics – affiliation and category – with Internet adoption, but question findings on the relationship between hotel size and Internet adoption.     

A Note on the Predictability of UK Stock Returns

This note presents evidence on the predictability of UK stock returns using a database of companies in the FTSE-Allshare Index newly constructed towards the beginning of 1998. The tests used are autocorrelations at various lags and variance ratios for several aggregations of base observations. The evidence is consistent with that published for US stock returns, namely that daily stock returns contain a strong element of predictability.     

Removed preferences

In formalizing a ‘veil of ignorance’ type procedure, this paper considers how an agent?s preferences over a set of alternatives change as he is placed at an increasing ‘distance’ from the consequences of his choices. A definition for such ‘removed preferences’ is presented and its properties studied. As an application, it is demonstrated that present biased agents are ‘essentially’ exponential when distanced from the present, and that rank-dependent expected utility agents are ‘essentially’ expected utility when distanced from risk.     

Cost-effectiveness of six months versus 1-year adjuvant trastuzumab in HER2 positive early breast cancer in Egypt

Abstract

Introduction: Breast cancer is the most prevalent cancer among women in Egypt. Trastuzumab is administered with chemotherapy for patients with HER2-positive advanced breast cancer (HER2?+?ve ABC) in the metastatic and adjuvant settings resulting in improved treatment outcomes, and long-term follow-up. Some studies have evaluated whether equivalent outcomes can be achieved with reduced treatment duration. This study evaluates the cost-effectiveness of 6-month versus 1-year trastuzumab treatments from payer perspective over a 10 year time horizon.

Methods: A half-cycle corrected Markov model was developed with five mutually exclusive health states; patient with HER2?+ve ABC, disease-free survival (DFS), local or regional relapse, metastatic relapse, and death. A cycle length of 6 months was applied, direct medical costs including cost of treatments, day-care, surgery, health states and follow-up visits were collected, and indirect costs such as lost productivity were not estimated. The transition probabilities and utilities were extracted from published literature, and deterministic sensitivity analyses were conducted.

Results: Among the HER2?+ve ABC patient population in Egypt, the total QALYs of the 6-month trastuzumab were estimated to be 2.99 compared with 2.93 for the 1-year trastuzumab which resulted in a difference of 0.06 QALYs. The total costs were EGP 271,647 ($106,947) and EGP 381,248 ($150,097), respectively. These costs yielded an ICER of –109,600 EGP/QALY (–43,149 $/QALY) for the 6-month trastuzumab. The 6-month trastuzumab is a dominant strategy when compared to 1-year trastuzumab, resulting in improved effectiveness at a reduced cost. All analyses results confirmed the dominance of 6-month trastuzumab and our model robustness.

Conclusions: This study concluded that 6-month trastuzumab is a cost-effective option when compared to 1-year trastuzumab in patients with HER2?+ve ABC in Egypt. Our findings provide health care decision makers with additional insights to best allocate available resources concurrently with the improvement of the Egyptian patient’s outcomes.