A theoretical framework to evaluate different margin‐setting methodologies

The margin system is the first line of defense against the default risk of a clearinghouse. From the perspectives of a clearinghouse, the utmost concern is to have a prudential system to control the default exposure. Once the level of prudentiality is set, the next concern will be the opportunity cost of the investors, because high opportunity cost discourages people from hedging futures, and thus defeats the function of a futures market. In this article, we first develop different measures of prudentiality and opportunity cost. We then formulate a statistical framework to evaluate different margin‐setting methodologies, all of which strike a balance between prudentiality and opportunity cost. Three margin‐setting methodologies, namely, (1) using simple moving averages; (2) using exponentially weighted moving averages; (3) using a GARCH approach, are applied to the Hang Seng Index futures. Keeping the same prudentiality level, it is shown that the one using a GARCH approach by and large gives the lowest average overcharge. © 2004 Wiley Periodicals, Inc. Jrl Fut Mark 24:117–145, 2004     

The major determinants of logistic performance in a global perspective: evidence from panel data analysis

The global logistics industry has grown significantly and logistics has become an important sector of the business economic system and a major global economic activity in recent years. Logistics activities accelerate economic and productivity growth. Efficient logistics is also important to a country’s competitiveness and source of employment. The purpose of this paper is to uncover and understand the major determinants of logistics performance (LP) to further lift the LP of countries. Using unbalanced panel data of 93 selected countries from 2007 to 2014, the present research attempts to critically investigate the major determinants of LP. In estimating the model, this study prefers to use static panel data approach owing to limited data. The findings of the present study reveal that (a) countries with low level of corruption and stable political environment are likely to yield a high level of LP; (b) improvement in resources supply such as infrastructure, technology, labour, and education also have a significant positive effect on LP. Therefore, institutional reforms and upgrading resources will effectively accelerate LP.     

The impacts of governance and institutions on inbound tourism demand: evidence from a dynamic panel data study

This study explores the impact of governance and institutions on inbound tourism demand in Malaysia using a dynamic panel data approach for 45 tourism source countries over the period 2005–2015. The results show that institutions play a very important role in explaining the behaviour of inbound tourism demand. To obtain a better picture, we investigate the response of international tourists to disaggregated institutional quality. We find that international tourists are more concerned about political stability, governmental effectiveness, regulations, laws, and corruption than voice and accountability. Therefore, policymakers should focus on ways to improve institutional quality to significantly increase international tourist arrivals.     

Does rapid economic growth enhance democratization? Time-series evidence from high performing Asian economies

We examine the long-run relationship between economic growth and democratization for the high performing Asian economies using a time-series technique called the autoregressive distributive lag bounds test. For all eight of such economies, we do not find a statistically significant long-run relationship running from growth to democratization. Instead, we find a statistically significant long-run relationship running from democratization to growth, which can be either positive or negative. Contrary to the conventional wisdom, our results suggest that rapid economic growth in the high performing Asian economies appears to have little effect on democratization in the long run.     

Is the tourism‐led growth hypothesis valid for malaysia? a view from disaggregated tourism markets

This research note attempts to re‐investigate the validity of tourism‐led growth hypothesis for Malaysia based on the data set of 12 different tourism markets from January 1995 to February 2009. The error‐correction modelling‐based cointegration test shows that economic growth and international tourist arrivals are cointegrated for all tourism markets. Nevertheless, the Granger causality results demonstrate that not all international tourism markets Granger‐cause economic growth. Therefore, identification of potential tourism markets is vital for implementing effective tourism marketing policies. Copyright © 2010 John Wiley & Sons, Ltd.     

Is the tourism‐led growth hypothesis stable for Malaysia? A note

This letter extends the Gunduz and Hatemi‐J study on the tourism‐led growth hypothesis with the Malaysian data. The rolling subsample causality test was employed to demonstrate the validity and stability of the tourism–growth causality relationship. Our result shows the causality relationship is valid and stable over the sample period. Copyright © 2009 John Wiley & Sons, Ltd.     

The savings-growth nexus for the Malaysian economy: a view through rolling sub-samples

The purpose of this study is to re-investigate the savings-growth nexus for the Malaysian economy using bounds testing approach to cointegration and Toda and Yamamoto (1995) and Dolado and Lütkepohl (1996) – TYDL Granger causality test. This study covered the sample period from 1971:Q1 to 2008:Q4. The cointegration results suggest that the variables are moving together in the long run and the TYDL Granger causality results indicate that the relationship between savings and economic growth is bilateral. In addition, the rolling sub-samples TYDL Granger causality test exhibited a relatively stable causal relationship running from savings to economic growth in Malaysia particularly before the onset of Asian Financial Crisis in 1997/1998.     

Comparing the contributions of tourism and non-tourism exports to economic growth in Malaysia

An in-depth study using data from 1974 to 2013 is conducted to assess the role of exports in Malaysia's economic growth through the neoclassical growth model. Unlike previous studies, we segregate exports into four major components, namely tourism, electrical and electronic (E&E), palm oil and rubbers. By doing so, we are able to assess the relative contributions of tourism and non-tourism (i.e. E&E, palm oil and rubbers) exports to Malaysia's economic growth. To achieve the objective of this study, we perform the cointegration, Granger causality and the variance decomposition tests. Our findings suggest that only tourism, E&E and palm oil exports significantly influence economic growth in the long-run. Likewise, our Granger causality results also suggest that only tourism, E&E and palm oil exports Granger-cause economic growth. Thus, it supports the tourism-led growth, E&E export-led growth (ELG) and palm oil ELG hypotheses in Malaysia. With reference to the contributions to economic growth, the long-run estimation results and the results of generalized variance decomposition consistently suggest that tourism is relatively more important than the three non-tourism exports, especially in explaining the long-term economic growth of Malaysia.     

Zoos,Sanctuaries and Turfs: Enactments and Uses of Gay Spaces during the Holidays

Extant theory suggests that the existence of gay space is an important (or even critical) element of gay people's holidays. However, more knowledge on the roles that gay spaces play during the holidays is needed. Drawing on interviews with 53 gay tourists, this paper suggests that the roles gay spaces play differ across gay tourists. Some interviewees enact gay spaces as ‘sanctuaries’, at which one can feel free and openly show one's sexuality. Others feel that gay spaces resemble ‘zoos’, i.e. tourist attractions at which straights gaze upon gays. Finally, some tourists find that gay spaces are too male oriented or even men's turfs. Copyright © 2012 John Wiley & Sons, Ltd.     

The effect of real wages and inflation on labour productivity in Malaysia

This study examines the relationship between labour productivity, real wages and inflation in Malaysia using the bounds testing approach to cointegration and also the Granger causality test. The findings of this study suggest that inflation is negatively related to labour productivity. However, the effect of real wages on labour productivity is non-linear and the two have an inverted-U shape relationship. From a policy viewpoint, the Granger causality test shows that real wages Granger-cause labour productivity, but there is no evidence of reversal causation. Hence, the Malaysian dataset supports the claims by the efficiency wage theory. Moreover, we find that inflation and labour productivity in Malaysia have bilateral causality in the short- and the long-run.