Air and Water Pollutants Impact on Malaysia’s Manufacturing Productivity

By Elsadig Musa Ahmed and Khalid Abdul Rahim.

Published by The Sustainability Collection

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Article: Print $US10.00
Article: Electronic $US5.00

This study examines the impact of air and water pollutants (consisting of carbon dioxide (CO2) and organic water pollutant Biochemical Oxygen Demand (BOD) emissions in combination) on Malaysia's manufacturing sector productivity growth and the factors that determined its growth. Autoregressive method was carried out on time series data for the period 1970-2001 to estimate the manufacturing sector productivity growth. Two models were generated from the production functions to measure manufacturing sector productivity growth. The first is an extensive growth theory model and the second one is an intensive growth theory model. The extensive theory model had a gap that cast doubt in the results. A statistical analysis was provided to close this gap. Exclusion of externalities such as pollutant emissions created a deficiency in growth accounting models as those pollutant emissions were internalised in order to calculate the green total factor productivity. The results show a slowdown in the contribution of Total Factor Productivity (TFP) growth and a negative impact of total pollutant emissions produced by the sector on productivity growth in general and TFP growth in particular in comparison with other productivity indictors of the sector.

Keywords: Malaysia, Air, Water, Pollutant Emissions, Economic Impact, Manufacturing Sector, Productivity Growth

The International Journal of Environmental, Cultural, Economic and Social Sustainability, Volume 4, Issue 1, pp.45-56. Article: Print (Spiral Bound). Article: Electronic (PDF File; 631.229KB).

Professor Elsadig Musa Ahmed

Lecturer, Economics Unit, Faculty of Business and Law, Multimedia University, Melaka, Melaka, Malaysia

Dr. Elsadig Musa Ahmed is a lecturer at Economics Unit and Coordinator for Post Graduate programs of the Faculty of Business and Law, Multimedia University, Melaka Campus, Malaysia. He is currently teaching International Economic History, International Political Economy, East Asian Economies, Knowledge-based Economy, Economic Integration and Regionalism, Microeconomics and Macroeconomics. He published several papers in international refereed journals and conferences and chapters and one book. He is reviewer and an expert of the second Millennium Ecosystem Assessment report "Biodiversity and Human Well–being: A Synthesis Report for the Convention on Biological Diversity, 2005" He has also been a reviewer for various international, regional and local Journals and conferences such as (Economic Modelling, World Review of Science, Technology and Sustainable Development, International Journal of Economic Policy Studies). His research interests include productivity analysis, productivity and environment, development economics, economic growth and environment and knowledge-based economy.

Dr. Khalid Abdul Rahim

Professor, Faculty of Economics and Management, Universiti Putra Malaysia, Serdang, Selangor, Malaysia

Professor Dr. Khalid Abdul Rahim is the professor of environmental economics and Deputy Dean of Graduate Studies and Student Affairs Faculty of Economics and Management, Universiti Putra Malaysia. He published several papers in international refereed journals and conferences and books and chapters. He has served as Malaysia’s representative in the United Nations Environmental Program. He is supervising some Master of Science (MSc) and Doctor of Philosophy (PhD), and has also been an examiner to PhD and Master Theses. He awarded the best paper presenter in several international conferences and medals from Malaysian government and institutions.


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