Bee Wah Tan - Academia.edu (original) (raw)

Papers by Bee Wah Tan

Research paper thumbnail of Examining the Causal Linkages among Domestic Investment, FDI, Trade, Interest Rate and Economic Growth in ASEAN-5 Countries

International Journal of Economics and Financial Issues, 2016

The aim of this study is to empirically analyse the linkages among domestic investment, foreign d... more The aim of this study is to empirically analyse the linkages among domestic investment, foreign direct investment (FDI), trade, interest rate and economic growth in the ASEAN-5 regions in the period 1970-2012. The Johansen-Juselius cointegration approach is applied to examine the long-run relationship and the Granger causality approach is applied to evaluate the causal linkages among the variables. The results confirm the existence of long-term causal links between domestic investment and FDI for the ASEAN-5. This means that collaboration of domestic and foreign investors is essential as the development of domestic firms contributes to further participation by multinational investors. We also reveal that domestic investment and FDI are growth enhancing and their impact is felt in both short- and long-run in the majority of the ASEAN-5 markets, indicating that these three variables are interrelated since they could be attracted to the growing economies. Thus, economic policies that a...

Research paper thumbnail of The nexus of electricity consumption and economic growth in Gulf Cooperation Council economies: evidence from non-stationary panel data methods

Geosystem Engineering, 2018

This paper investigates the electricity-growth nexus of Gulf Cooperation Council (GCC) member cou... more This paper investigates the electricity-growth nexus of Gulf Cooperation Council (GCC) member countries from 1980 to 2014. To achieve the goal of this research, both panel cointegration and causality approaches are utilised to examine the long-term and causal relationships between variables. Empirical results confirm the presence of cointegration between variables. Moreover, this study finds that electricity consumption affects the long-term economic growth. Given that GCC member countries are energy-dependent economies, policies that aim to conserve energy consumption may jeopardise economic growth.

Research paper thumbnail of Energy consumption and economic growth in Vietnam

Renewable and Sustainable Energy Reviews, 2016

This study attempts to analyse the relationship between energy consumption and economic growth in... more This study attempts to analyse the relationship between energy consumption and economic growth in Vietnam using the neoclassical Solow growth framework for the 1971–2011 period. The concept and methods of cointegration and Granger causality are used to establish the relationship between the variables of interest. Our results confirm the existence of cointegration among the variables. In particular, energy consumption, FDI and capital stock were found positively influence economic growth in Vietnam. The Granger causality test revealed unidirectional causality running from energy consumption to economic growth. Hence, Vietnam is an energy-dependent economy and any energy or environment policy drawn up in an attempt to conserve energy will jeopardise the process of economic development in Vietnam. For this reason, the renewable energy policy should be given attention to provide sufficient supplies of energy to speed up economic expansion. Investment in R&D may be required to incentivise private/public institutions to engage in this innovation, while the awareness for energy-saving policy among public could be integrated to meet social economic development.

Research paper thumbnail of Energy consumption and economic growth in Vietnam

Renewable and Sustainable Energy Reviews, 2016

This study attempts to analyse the relationship between energy consumption and economic growth in... more This study attempts to analyse the relationship between energy consumption and economic growth in Vietnam using the neoclassical Solow growth framework for the 1971–2011 period. The concept and methods of cointegration and Granger causality are used to establish the relationship between the variables of interest. Our results confirm the existence of cointegration among the variables. In particular, energy consumption, FDI and capital stock were found positively influence economic growth in Vietnam. The Granger causality test revealed unidirectional causality running from energy consumption to economic growth. Hence, Vietnam is an energy-dependent economy and any energy or environment policy drawn up in an attempt to conserve energy will jeopardise the process of economic development in Vietnam. For this reason, the renewable energy policy should be given attention to provide sufficient supplies of energy to speed up economic expansion. Investment in R&D may be required to incentivise private/public institutions to engage in this innovation, while the awareness for energy-saving policy among public could be integrated to meet social economic development.

Research paper thumbnail of The impact of energy consumption, income and foreign direct investment on carbon dioxide emissions in Vietnam

Energy, 2015

The purpose of this paper is to examined the empirical effects of stocks traded-total value, fore... more The purpose of this paper is to examined the empirical effects of stocks traded-total value, foreign direct investment, number of students, and fossil fuel energy consumption on nitrogen dioxide (NO2) emissions in Iran using time series data for the period 1978-2012. To achieve this goal, we applied the autoregressive distributed lag (ARDL) bounds testing approach. Findings indicate that foreign direct investment, fossil fuel energy consumption, and number of students stimulate NO2 emissions in the long run. Based on these findings, the study recommends that Iran reduce emissions by expanding its existing Carbon Capture, Utilization, and Storage plants; capitalizing on its vast solar and wind energy; reducing high subsidies of the residential electricity scheme; and aggressively investing in energy research to build expertise for achieving electricity generation efficiency. It must be noted that greenhouse gas reduction policies cannot produce immediate results in changing wind and precipitation patterns and thus mitigating climate change effects.

Research paper thumbnail of The dynamic relationship between private domestic investment, the user cost of capital, public investment, foreign direct investment and economic growth in Malaysia

This study attempts to examine the dynamic relationship between private domestic investment (PDI)... more This study attempts to examine the dynamic relationship between private domestic investment (PDI), the user cost of capital, and economic growth in Malaysia over the period of 1970 to 2009. Johansen cointegration test suggests that PDI, the user cost of capital, and economic growth are cointegrated in Malaysia. Granger causality test reveals that there is a unidirectional causality running from PDI to economic growth and also from PDI to the user cost of capital in the long run. Moreover, there is a bidirectional causal relationship between economic growth and the user cost of capital in the long run. Meanwhile, there is a strong evidence of a bidirectional causality between PDI, economic growth, and the user cost of capital in the short run. For completeness, variance decomposition is also generated and the results suggest that PDI is more important than the user cost of capital in explaining the variation of economic growth. Finally, the impulse response function confirmed that a shock in the user cost capital exerts a negative effect on PDI and economic growth in Malaysia.

Research paper thumbnail of The linkages among energy consumption, economic growth, relative price, foreign direct investment, and financial development in Malaysia

Quality & Quantity, 2012

The aim of this study is to analyse the causal relationship among energy consumption, economic gr... more The aim of this study is to analyse the causal relationship among energy consumption, economic growth, relative price, financial development (FD) and foreign direct investment in Malaysia using a multivariate framework. This study covers a sample from 1972 to 2009. Both the Johansen-Juselius cointegration test and bounds testing approach to cointegration consistently suggest that the variables are cointegrated. We find that energy consumption and economic growth Granger causes each other in the short and long run. In addition, both FDI-led growth and finance-led growth hypotheses are also supported by the findings from this study. Ultimately, energy is a prominent resource for financial sector development in Malaysia because we find that energy consumption Granger causes FD. Policymakers should implement a dual strategy that, on one hand, increases investment in energy infrastructure to ensure that the supply of energy is sufficient for the financial sector and economic development, while, on the other, encourages R&D in green technology such as exercising proper soil conservation techniques and sustainable farming practices in order to reduce the consumption of fossil fuels. By doing so, environmental problems such as carbon dioxide emissions can be minimised without affecting economic growth and financial sector development in Malaysia.

Research paper thumbnail of A revalidation of the savings–growth nexus in Pakistan

Economic Modelling, 2014

The aim of this study is to understand the relationship between savings and economic growth in Pa... more The aim of this study is to understand the relationship between savings and economic growth in Pakistan over the period 1971-2011. The cointegration and the Granger causality tests are adopted to examine the relationship between the variables. The results confirm the existence of long-run equilibrium among the variables of interest. Meanwhile, savings have positively affected economic growth in both the short run and long run. The Granger results also show that savings Granger-cause economic growth. Based upon these findings, we confirm that savings is a catalyst of growth for the Pakistani economy. Additionally, our results seem more likely to support the capital fundamentalists because the long run estimation as well as the Granger causality results also indicates that savings growth can effectively spur economic growth in Pakistan.

Research paper thumbnail of A nexus between intra-ASEAN outward FDI, intra-ASEAN exports and economic growth of ASEAN-10: evidence using panel causality analysis

Asia-Pacific Journal of Business Administration

PurposeThe Association of Southeast Asian Nations (ASEAN) has evolved into ASEAN Economic Communi... more PurposeThe Association of Southeast Asian Nations (ASEAN) has evolved into ASEAN Economic Community (AEC), which aims to pursue a single market and production base to transform ASEAN into a dynamic, competitive and global region. ASEAN is inherently heterogeneous that potentially could promote further economic integration, fundamentally, through the interactions between intra-regional outward foreign direct investment (OFDI), export trade and economic growth. Hence, this paper attempts to explore the causal relationship between intra-ASEAN OFDI, intra-ASEAN exports and economic growth of ASEAN-10 countries.Design/methodology/approachThis paper attempts to explore the causal relationship between intra-ASEAN OFDI, intra-ASEAN exports and economic growth of ASEAN-10 countries, using regional panel data based on Dumitrescu and Hurlin (2012) non-causality analysis, which allows us to take into account of the heterogeneity in terms of causal relationships.FindingsThe empirical study shows...

Research paper thumbnail of Examining the Causal Linkages among Domestic Investment, FDI, Trade, Interest Rate and Economic Growth in ASEAN-5 Countries

International Journal of Economics and Financial Issues, 2016

The aim of this study is to empirically analyse the linkages among domestic investment, foreign d... more The aim of this study is to empirically analyse the linkages among domestic investment, foreign direct investment (FDI), trade, interest rate and economic growth in the ASEAN-5 regions in the period 1970-2012. The Johansen-Juselius cointegration approach is applied to examine the long-run relationship and the Granger causality approach is applied to evaluate the causal linkages among the variables. The results confirm the existence of long-term causal links between domestic investment and FDI for the ASEAN-5. This means that collaboration of domestic and foreign investors is essential as the development of domestic firms contributes to further participation by multinational investors. We also reveal that domestic investment and FDI are growth enhancing and their impact is felt in both short- and long-run in the majority of the ASEAN-5 markets, indicating that these three variables are interrelated since they could be attracted to the growing economies. Thus, economic policies that a...

Research paper thumbnail of The nexus of electricity consumption and economic growth in Gulf Cooperation Council economies: evidence from non-stationary panel data methods

Geosystem Engineering, 2018

This paper investigates the electricity-growth nexus of Gulf Cooperation Council (GCC) member cou... more This paper investigates the electricity-growth nexus of Gulf Cooperation Council (GCC) member countries from 1980 to 2014. To achieve the goal of this research, both panel cointegration and causality approaches are utilised to examine the long-term and causal relationships between variables. Empirical results confirm the presence of cointegration between variables. Moreover, this study finds that electricity consumption affects the long-term economic growth. Given that GCC member countries are energy-dependent economies, policies that aim to conserve energy consumption may jeopardise economic growth.

Research paper thumbnail of Energy consumption and economic growth in Vietnam

Renewable and Sustainable Energy Reviews, 2016

This study attempts to analyse the relationship between energy consumption and economic growth in... more This study attempts to analyse the relationship between energy consumption and economic growth in Vietnam using the neoclassical Solow growth framework for the 1971–2011 period. The concept and methods of cointegration and Granger causality are used to establish the relationship between the variables of interest. Our results confirm the existence of cointegration among the variables. In particular, energy consumption, FDI and capital stock were found positively influence economic growth in Vietnam. The Granger causality test revealed unidirectional causality running from energy consumption to economic growth. Hence, Vietnam is an energy-dependent economy and any energy or environment policy drawn up in an attempt to conserve energy will jeopardise the process of economic development in Vietnam. For this reason, the renewable energy policy should be given attention to provide sufficient supplies of energy to speed up economic expansion. Investment in R&D may be required to incentivise private/public institutions to engage in this innovation, while the awareness for energy-saving policy among public could be integrated to meet social economic development.

Research paper thumbnail of Energy consumption and economic growth in Vietnam

Renewable and Sustainable Energy Reviews, 2016

This study attempts to analyse the relationship between energy consumption and economic growth in... more This study attempts to analyse the relationship between energy consumption and economic growth in Vietnam using the neoclassical Solow growth framework for the 1971–2011 period. The concept and methods of cointegration and Granger causality are used to establish the relationship between the variables of interest. Our results confirm the existence of cointegration among the variables. In particular, energy consumption, FDI and capital stock were found positively influence economic growth in Vietnam. The Granger causality test revealed unidirectional causality running from energy consumption to economic growth. Hence, Vietnam is an energy-dependent economy and any energy or environment policy drawn up in an attempt to conserve energy will jeopardise the process of economic development in Vietnam. For this reason, the renewable energy policy should be given attention to provide sufficient supplies of energy to speed up economic expansion. Investment in R&D may be required to incentivise private/public institutions to engage in this innovation, while the awareness for energy-saving policy among public could be integrated to meet social economic development.

Research paper thumbnail of The impact of energy consumption, income and foreign direct investment on carbon dioxide emissions in Vietnam

Energy, 2015

The purpose of this paper is to examined the empirical effects of stocks traded-total value, fore... more The purpose of this paper is to examined the empirical effects of stocks traded-total value, foreign direct investment, number of students, and fossil fuel energy consumption on nitrogen dioxide (NO2) emissions in Iran using time series data for the period 1978-2012. To achieve this goal, we applied the autoregressive distributed lag (ARDL) bounds testing approach. Findings indicate that foreign direct investment, fossil fuel energy consumption, and number of students stimulate NO2 emissions in the long run. Based on these findings, the study recommends that Iran reduce emissions by expanding its existing Carbon Capture, Utilization, and Storage plants; capitalizing on its vast solar and wind energy; reducing high subsidies of the residential electricity scheme; and aggressively investing in energy research to build expertise for achieving electricity generation efficiency. It must be noted that greenhouse gas reduction policies cannot produce immediate results in changing wind and precipitation patterns and thus mitigating climate change effects.

Research paper thumbnail of The dynamic relationship between private domestic investment, the user cost of capital, public investment, foreign direct investment and economic growth in Malaysia

This study attempts to examine the dynamic relationship between private domestic investment (PDI)... more This study attempts to examine the dynamic relationship between private domestic investment (PDI), the user cost of capital, and economic growth in Malaysia over the period of 1970 to 2009. Johansen cointegration test suggests that PDI, the user cost of capital, and economic growth are cointegrated in Malaysia. Granger causality test reveals that there is a unidirectional causality running from PDI to economic growth and also from PDI to the user cost of capital in the long run. Moreover, there is a bidirectional causal relationship between economic growth and the user cost of capital in the long run. Meanwhile, there is a strong evidence of a bidirectional causality between PDI, economic growth, and the user cost of capital in the short run. For completeness, variance decomposition is also generated and the results suggest that PDI is more important than the user cost of capital in explaining the variation of economic growth. Finally, the impulse response function confirmed that a shock in the user cost capital exerts a negative effect on PDI and economic growth in Malaysia.

Research paper thumbnail of The linkages among energy consumption, economic growth, relative price, foreign direct investment, and financial development in Malaysia

Quality & Quantity, 2012

The aim of this study is to analyse the causal relationship among energy consumption, economic gr... more The aim of this study is to analyse the causal relationship among energy consumption, economic growth, relative price, financial development (FD) and foreign direct investment in Malaysia using a multivariate framework. This study covers a sample from 1972 to 2009. Both the Johansen-Juselius cointegration test and bounds testing approach to cointegration consistently suggest that the variables are cointegrated. We find that energy consumption and economic growth Granger causes each other in the short and long run. In addition, both FDI-led growth and finance-led growth hypotheses are also supported by the findings from this study. Ultimately, energy is a prominent resource for financial sector development in Malaysia because we find that energy consumption Granger causes FD. Policymakers should implement a dual strategy that, on one hand, increases investment in energy infrastructure to ensure that the supply of energy is sufficient for the financial sector and economic development, while, on the other, encourages R&D in green technology such as exercising proper soil conservation techniques and sustainable farming practices in order to reduce the consumption of fossil fuels. By doing so, environmental problems such as carbon dioxide emissions can be minimised without affecting economic growth and financial sector development in Malaysia.

Research paper thumbnail of A revalidation of the savings–growth nexus in Pakistan

Economic Modelling, 2014

The aim of this study is to understand the relationship between savings and economic growth in Pa... more The aim of this study is to understand the relationship between savings and economic growth in Pakistan over the period 1971-2011. The cointegration and the Granger causality tests are adopted to examine the relationship between the variables. The results confirm the existence of long-run equilibrium among the variables of interest. Meanwhile, savings have positively affected economic growth in both the short run and long run. The Granger results also show that savings Granger-cause economic growth. Based upon these findings, we confirm that savings is a catalyst of growth for the Pakistani economy. Additionally, our results seem more likely to support the capital fundamentalists because the long run estimation as well as the Granger causality results also indicates that savings growth can effectively spur economic growth in Pakistan.

Research paper thumbnail of A nexus between intra-ASEAN outward FDI, intra-ASEAN exports and economic growth of ASEAN-10: evidence using panel causality analysis

Asia-Pacific Journal of Business Administration

PurposeThe Association of Southeast Asian Nations (ASEAN) has evolved into ASEAN Economic Communi... more PurposeThe Association of Southeast Asian Nations (ASEAN) has evolved into ASEAN Economic Community (AEC), which aims to pursue a single market and production base to transform ASEAN into a dynamic, competitive and global region. ASEAN is inherently heterogeneous that potentially could promote further economic integration, fundamentally, through the interactions between intra-regional outward foreign direct investment (OFDI), export trade and economic growth. Hence, this paper attempts to explore the causal relationship between intra-ASEAN OFDI, intra-ASEAN exports and economic growth of ASEAN-10 countries.Design/methodology/approachThis paper attempts to explore the causal relationship between intra-ASEAN OFDI, intra-ASEAN exports and economic growth of ASEAN-10 countries, using regional panel data based on Dumitrescu and Hurlin (2012) non-causality analysis, which allows us to take into account of the heterogeneity in terms of causal relationships.FindingsThe empirical study shows...