Siong Hook Law

Siong Hook Law
Universiti Putra Malaysia | UPM · School of Business and Economics

Ph.D (Economics)

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168
Publications
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Publications

Publications (168)
Article
In recent years, the new economy has entered a phase of rapid development and upgrading China’s service consumption is driving the continuous optimization of the population’s consumption structure. To realize the rationalization of the Chinese household consumption structure, the ELES model is used to analyze the structure system of Chinese househo...
Article
In order to explore the correlation between ICT development and consumer spending, this paper uses artificial intelligence and time series econometric models to study the correlation between ICT development and consumer spending. Moreover, this paper organically combines the advantages of wavelet analysis and hidden Markov model to construct a wave...
Article
This study is motivated to examine if firm growth is dependent on access to external finance but subject to the macroeconomic environment. Using firm-level data from firms listed in Bursa Malaysia for the 2006-2014 period, the study applies dynamic panel system generalized method of moments (GMM) estimation (Blundell & Bond, 1998) to estimate how a...
Article
Purpose: The purpose of this paper is to present a review of empirical evidence on the effectiveness of Aid for Trade (AfT) inflows and recommend new areas of interest concerning the initiative other than its effect on trade performance. Design/methodology/approach: This paper reviews a sample of 55 studies over the past 11 years. Besides, this pa...
Article
This article analyses the importance of high-technology trade as a channel of economic growth to ease Malaysia out of the middle-income trap. This study also wonders upon the missing absorptive capabilities that validate the likelihoods of dismal gross domestic product (GDP) growth since the 1990s. Using the autoregressive distributed lag (ARDL) ap...
Article
This study examines the dynamic linkage among transparency, financial development, income inequality and economic growth of 68 developing countries from 2000 to 2016, using a Panel Vector Autoregressive (PVAR) model. Two transparency indicators namely: (i) World Governance Indicators (WGI) and (ii) Global Index of Information Transparency and Accou...
Article
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Purpose This study aims to examine the effects of institutions on private investment (PI) using panel data analysis, where the sample countries consist of 100 countries around the world and the time period is covering from 2007 to 2016. The system generalized method of moments (GMM) estimator, introduced by Arellano and Bond (1991) and further deve...
Article
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The paper investigates the oil price fluctuation on exchange rates for main African net oil importing countries, namely South Africa, Morocco, Côte d’Ivoire, Kenya, Ghana and Senegal that cover for the period from 1983Q2 to 2018Q4. In order to thoroughly examine the subject matter, this study takes a specific account of the symmetric and asymmetric...
Article
Studies show that the impact of financial markets on innovation is mixed. This paper examines whether financial development can help explain the pace of innovation in 68 developed and developing countries during 1995‒2018. By utilizing panel data and incorporating market institutions (market creating, market regulating, market stabilizing, and mark...
Article
This study examines the impact of financial inclusiveness on economic growth using a sample of 60 countries from 2010 to 2017. A new Index of Financial Inclusion (IFI) has been constructed for each country to determine their level of financial inclusiveness across time. The main findings using a dynamic panel threshold estimation technique revealed...
Article
Using a dynamic panel threshold technique, this study provides new evidence on the threshold value of the ratio of public debt to the gross domestic product in seventy-one developing countries from 1984 to 2015. We show a threshold debt value of 51.65 percent, which is much lower than in the previous literature. The debt has a negative and statisti...
Article
This study explores the asymmetric effects of corporate sustainability strategy on firm value at different conditioning quantiles by performing a dynamic panel quantile regression analysis on global automotive firms from 2011 to 2017. Further, this study measures the distinct effects of positive and negative corporate sustainability strategies on f...
Article
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This study delivers new empirical evidence on the impact of banking regulations on the levels of social and financial efficiency of microfinance institutions (MFIs) between the years 2012 to 2018. The sample consisted of data from 172 MFIs from ASEAN-5 countries. As the first stage of the analysis, data envelopment analysis (DEA) was employed to de...
Article
This study is motivated by Modigliani and Miller's (1958) financing constraints theory (FCT) and others like Rajan and Zingales (1998), Fisman and Love (2007), and Manganelli and Popov (2013) also sharing similar enthusiasm that firm growth are dependence on access to external finance but subject to macroeconomic environment. Using firm-level data...
Article
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The aim of the present study was to examine the effect of urbanization, purchasing power, and income on motorcycle ownership and the effects of interactions between these factors. Specifically, we examined how the inverse-U relationship between motorcycle ownership and economic development changed in response to different levels of purchasing power...
Article
Income inequality is a source of social instability and armed conflict, which in turn are detrimental to economic development. This study examines the role of innovation in income inequality in twenty-three developed countries, using a panel mean group estimator that takes cross-sectional dependence into consideration. Three income inequality indic...
Article
Changes in the oil price directly affect production costs, and subsequently, the general price level of products. With Indonesia observing an inflation targeting policy, this study applies the nonlinear autoregressive distributed lag (NARDL) technique to investigate the effect of oil price fluctuations in Indonesia. The relationship is important fo...
Conference Paper
Full-text available
Abstract Trade facilitation has gained more attention in a recent trade research area and has become more important trade policy measures particularly after trade liberalization reform takes place. Trade liberalization has resulted in a significant tariff reduction in most of the countries including ASEAN countries. This has forced ASEAN countries...
Article
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Purpose The purpose of this study is to examine how banking regulation and supervision affect the performance of microfinance institutions (MFIs). It proposes performance of the MFIs from the aspect of social and financial efficiency because the MFIs nowadays not only view to sustain the social role of poverty eradication but in the same time they...
Article
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-...
Article
This paper empirically analyses the role of Islamic banking in financial intermediation costs as measured by net interest margins for a leading dual banking country, Malaysia. Controlling for theoretically motivated determinants of the margins, the paper compares the interest/financing margins of conventional and Islamic banks and examines the impa...
Article
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This study assesses the impact of corporate social responsibility (CSR) on corporate financial performance (CFP) by using an innovative threshold estimation technique. We examine whether the CSR effect on CFP is varied with the distinct levels of market differentiation. The empirical analysis is based on a world automotive panel dataset for the per...
Article
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This study investigates the dynamic causality relationship between Corporate Social Responsibility (CSR) and the Corporate Political Activity (CPA). We employed the Vector AutoRegression (VAR) model in the Generalised Method of Moments (GMM) framework and considered all time-invariant characteristics of every organisation. We studied a sample consi...
Article
This study investigates the effect of trade openness on income inequality using the panel system generalised method of moments (GMM). The sample countries consist of 65 developed and developing countries and the time period covers from 1984 to 2012. This study also provides new evidence that sheds light on the role of institutional quality in influ...
Preprint
Full-text available
High maternal mortality in the developing countries, particularly in Nigeria, poses serious challenge to achieving the maternal mortality target of the Sustainable Development Goals (SDGs) in the countries. Hence, there is need for multifaceted approach to curtailing the scourge. Women being the victims of maternal mortality, this study finds the e...
Article
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This study examines the dynamic impact of financial development, energy consumption, trade openness, and economic growth on carbon dioxide (CO2) emissions in Nigeria. We applied autoregressive distributed lag bound testing technique for the period of 1971–2010. The empirical result shows a long-run cointegration relationship among the variables. Th...
Article
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In the initial phase of economic development, motorcycle ownership rise with the growing demand in transportation. However, as income rose and perhaps due to convenience, safety and prestige, motorists opt to purchase car than motorcycle. Under high inflation, motorists tend to choose cheaper mode of transportation, like motorcycles and mopeds, whi...
Article
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The dynamic relationship between carbon dioxide emissions and other macroeconomic variables is long established in the literature, and carbon dioxide is seen as one of the variables that captures the environmental conditions in the global economy. The manufacturing sector plays a key role in the economic growth of every nation. However, its operati...
Article
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This study is an attempt to model the bidirectional linkages between corporate social responsibility (CSR) and corporate financial performance (CFP) by using the prospective and retrospective approaches. A panel data set for 100 of the Fortune Most Admired Companies was used to study the relationships. Moreover, 1000 firm-year observations were exa...
Article
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This study contributes to economic growth literature by providing new evidence on the relationship between life expectancy and economic growth utilising the recently developed dynamic panel threshold estimator. The sample of this study contains a total of 112 developed and developing countries covering the period from 1981 to 2010. The findings ind...
Article
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The increase in indigenous oil firms’ participation (IOFP) and backward linkages through which additional jobs could be created was the main target of the local content policy (LC policy) implemented in the Nigerian oil sector over the past decade. Thus, the purpose of this paper is to assess whether IOFP and backward linkages mediate the relations...
Article
We use principal component analysis (PCA) to extract the essential information contained in 10 different country rankings, measuring different country characteristics such as GDP per capita, human development, quality of governance, environmental quality and business environment. Globally, the first principal component accounts for about 82 per cen...
Article
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The present paper examine the causal relationship between economic growth and remittances among the top ten highest remittance recipient countries in the world based on remittance to GDP ratio (Haiti, Honduras, Kyrgyz Republic, Lebanon, Lesotho, Moldova, Nepal, Samoa, Tajikistan, and Tonga). We applied Konya (2006) Bootstrap panel remittance inflow...
Article
Using an unbalanced panel of 96 banks that operate in the Chinese banking sector from 2007 to 2014, we first seek to uncover the relation between credit market freedom and bank profit. Thereafter, we further analyse the freedom effects on the convergence of bank profit so as to explain the prevailing persistent fall in the profit growth of Chinese...
Article
The present paper examine the causal relationship between economic growth and remittances among the top ten highest remittance recipient countries in the world based on remittance to GDP ratio (Haiti, Honduras, Kyrgyz Republic, Lebanon, Lesotho, Moldova, Nepal, Samoa, Tajikistan, and Tonga). We applied Konya (2006) Bootstrap panel Granger-causality...
Article
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Simple theoretical consideration suggests that the flows of workers’ remittances ought to be partly driven by domestic macroeconomic indicators. However, empirical research seeking to support this claim has produced mixed results. In this paper, using a Pooled Mean Group (PMG) estimator on panel data from 15 labour-sending Asian countries during th...
Article
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The current paper examines the relationship between health financing (public and out-of-pocket health financing), CO2 emission and health outcomes in 35 Sub-Saharan African countries for the period of 1995–2012. The panel unit root and cointegration tests are conducted as pre-tests, followed by the estimation of the parameters using the FM-OLS and...
Article
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Carbon dioxide (CO2) emissions have been rising globally and have raised public concern regarding their detrimental effects to human life. This article investigates the validity of the Environmental Kuznets Curve (EKC) hypothesis in developing countries in a nonlinear framework. The article applies the dynamic panel threshold method, which is able...
Article
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This study investigates whether financial development dampens the negative impact of oil resource abundance on economic growth. Because of substantial cross-sectional dependence in our data, which contain a core sample of 63 oil-producing countries from 1980 through 2010, we use the common correlated effect mean group (CCEMG) estimator to account f...
Article
It is expected that possessing the natural resources could faster increases the pace of growth in natural resource endowed countries. However, history has shown that this is not the case for some resource rich countries. In the current study, hence, we assess whether more developed financial markets can channel the revenues from oil into more produ...
Article
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The past decade has seen the rapid development of the tourist industry in Southeast Asia. There is increasing concern that tourism is highly affecting CO2 emissions, but the nature of the relationship is still unclear. The main target of this paper is to investigate the existence of a linear and/or nonlinear relationship between tourism and CO2 emi...
Article
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The present article examines the dynamic linkages between biomass energy consumption, capital stock, human capital and economic growth across selected Sub-Saharan African countries based on dynamic heterogeneous panels of a mean group (MG) and pooled mean group (PMG) techniques. The finding based on PMG as the preferred method reveals that biomass...
Article
This study examines the dynamic causal links and volatility spillovers of inflation, output growth and their uncertainties in four South Asian countries, namely, Pakistan, India, Bangladesh and Sri Lanka by utilizing asymmetric GARCH family models. Our empirical evidence supports a number of important conclusions. There is an overwhelming support f...
Article
This paper investigates the effect of banking sector development on economic growth in a panel of 87 countries, paying particular attention to the role of institutions in reducing the finance curse phenomenon. The dynamic generalized method-of-moments (GMM) results indicate that institutions play an important role in mediating the positive relation...
Article
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This paper examines the non-linear relationship between financial development and innovation using panel system generalized method of moments (GMM) estimators. The sample countries consist of 75 developed and developing countries and the sample period covers from 1996 through 2010. The empirical results reveal an inverted U-shaped non-linear relati...
Article
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This study examines the long and short term abilities of gold to hedge against inflation in Malaysia during the period from 1971 to 2011. The Johansen cointegration results reveal that there is a long term relationship between gold price and consumer price index. Using the Tsay’s linearity test, the findings demonstrate the nonlinear relationship b...
Article
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This study examines an empirical analysis of the causal links and volatility spillovers between inflation, output growth and their uncertainties in Bangladesh by utilizing the autoregressive AR(p)-exponential generalized AR conditional heteroscedasticity (EGARCH) model for the period 1993-2014. The study shows that EGARCH version provides the best...
Article
This paper investigates the roles of formal institutions and social capital in countries’ innovation activities. The sample consists of 62 developed and developing countries, using the ordinary least squares robust standard error estimations, instrumental variable (IV) estimators, and quantile regression. The empirical results indicate that formal...
Article
Full-text available
This firm-level study examines whether the effects of financial leverage on stock returns of 12 Bursa Malaysian sectors can be explained by debt maturity. When total leverage is used, only 3 out of 12 sectors exhibit a significant relationship with stock returns. However, when the leverage is divided by using short-term and long-term debt, regressi...
Article
This study analyses the wealth channel of the monetary policy transmission mechanism in Malaysia. Given the underdevelopment and non-inclusion of housing wealth in previous literature regarding the wealth channel in Malaysia, this research aims to find out (1) whether monetary policy shocks significantly affect asset prices, (2) whether asset price...
Article
Full-text available
Manuscript type: Research paper. Research aims: This study examines whether developing countries that had adopted the International Financial Reporting Standards (IFRS) experience better foreign direct investment (FDI) inflows than non-adopting countries. Linked to that, the study also examines the moderating role of country-level institutional qua...
Article
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This paper aims to investigate the impact of financial integration on economic growth. Home bias, which is the tendency of over-investing in domestic stock bourse, is proposed as a proxy of advanced financial integration. The persistence of home bias reflects the existence of international friction. A high degree of home bias reflects imperfect int...
Article
FDI can be beneficial in term of creating spillover in the hosts’ country, but there is no direct evidence to confirm that FDI affects innovation activities in Malaysia. Innovation means fresh thinking and approaches that add value to consistently create wealth and social welfare. This study examines the effect of inward FDI and human capital on in...
Article
Full-text available
FDI can be beneficial in term of creating spillover in the hosts’ country, but there is no direct evidence to confirm that FDI affects innovation activities in Malaysia. Innovation means fresh thinking and approaches that add value to consistently create wealth and social welfare. This study examines the effect of inward FDI and human capital on in...
Article
This study investigated the degree of synchronization between credit expansion and financial stability in Malaysia at aggregated and disaggregated levels. The dynamic factor model and a broad range of macro-financial variables are adopted to construct a financial stability index to measure the stability of the Malaysian financial system. The non-pa...
Article
This paper aims to investigate the role of home country institution in affecting outward FDI from Malaysia using data spans from 1980 to 2012. The model specification is examined in autoregressive distributed lag (ARDL) bounds testing framework. The empirical evidence reveals that GDP, exchange rate, openness to trade, and corporate tax rate are th...
Article
Full-text available
The question of how adopting local content policy (LC policy) benefits the economic growth of developing oil-rich countries is hardly new but is a continuous debate that often centers on increasing the value-added that LC policy can create within the oil industry. However, the level to which LC policy can achieve this goal in some of these countrie...
Article
We assess whether well-developed financial system can moderate the positive association between oil volatility and growth volatility. Using a core sample of 63 oil-producing countries over the period 2000–2010, the empirical analysis confirms a negative link between oil terms of trade volatility and growth volatility. In addition, we find evidence...
Article
Full-text available
The objective of this paper is to examine the dynamic impact of urbanization, economic growth, energy consumption, and trade openness on CO 2 emissions in Nigeria based on autoregressive distributed lags (ARDL) approach for the period of 1971–2011. The result shows that variables were cointegrated as null hypothesis was rejected at 1 % level of sig...
Conference Paper
Full-text available
This study examined the dynamic impact of institutional quality on financial inclusion during 2004-2010 across 52 developing countries. We applied dynamic panel generalized of moments (GMM) technique and found that, institutional quality promotes both access and uses of formal financial services in developing countries. Furthermore, the result show...
Article
Full-text available
This study examines whether financial inclusion can help to promote financial development. We analyze the determinants of financial development using a system generalized method of moments (System GMM) in a panel of 97 countries during 2004-2012. The empirical results suggest that financial inclusion is statistically significant determinant of fina...
Article
This study examines the dynamic linkages among consumer price, producer price, industrial production and import price indices in Malaysia by using monthly data from 2005 to 2013. The empirical results based on Johansen multivariate cointegration test reveal that there is a long-run relationship among these indices. The long-run estimations indicate...
Article
Full-text available
The issue of governance and armed conflict has been debated in recent years. Economists recognized that good governance is central to achieving higher economic development and also ending conflict. In this study, we investigate the effect of governance on armed conflict in 80 selected developing economies for the period 1996-2013. Using Logit model...
Article
Full-text available
This paper attempts to investigate the impact of health financing and environmental quality on health outcome in low and lower-middle income countries using Generalized Method of Moments (GMM). Data were obtained from World Development Indicators and World Governance Indicators. Results based on system GMM reveal that health financing plays a posit...
Article
FDI can be beneficial in term of creating spillover in the hosts' country, but there is no direct evidence to confirm that FDI affects innovation activities in Malaysia. Innovation means fresh thinking and approaches that add value to consistently create wealth and social welfare. This study examines the effect of inward FDI and human capital on in...
Conference Paper
Full-text available
This study examines the roles of institutions in reducing carbon emissions across 47 developing countries during 2004-2010. The main empirical finding based on panel generalized method of moments (GMM) reveals that sound and quality institutions reduces environmental degradation through reduction of carbon emissions in developing countries. As show...