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

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  • Hussain, Nor Ermawati

    (School of Social and Economic Development Universiti Malaysia Terengganu 21030 Kuala Nerus Terengganu MALAYSIA)

  • Shaari, Mohd Shahidan

    (School of Business Innovation and Technopreneurship Universiti Malaysia Perlis Pengkalan Jaya, Jalan alor-Setar-Kangar 01000 Kangar Perlis MALAYSIA)

  • Mohamad Akhir, Noor Haslina

    (School of Social and Economic Development Universiti Malaysia Terengganu 21030 Kuala Nerus Terengganu MALAYSIA)

  • Chau, Diana Nabila Abdullah

    (Faculty of Business, Economicsand Accountancy Universiti Malaysia Sabah Jalan UMS, 88400 Kota Kinabalu Sabah MALAYSIA)

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.

Suggested Citation

  • Hussain, Nor Ermawati & Shaari, Mohd Shahidan & Mohamad Akhir, Noor Haslina & Chau, Diana Nabila Abdullah, 2018. "Macroeconomic Variables and In-Migration in Malaysia’s Developed States," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(1), pages 225-241.
    • Handle: RePEc:ukm:jlekon:v:52:y:2018:i:1:p:225-241
    DOI: http://dx.doi.org/10.17576/JEM-2018-5201-19
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    References listed on IDEAS

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