This document provides the table of contents for the proceedings of the USM International Conference on Social Sciences (USM-ICOSS) 2015, held from August 27-28, 2015. The conference included papers on various topics related to social sciences, organized into sections including economic growth, youth and psychology, development planning and management, politics and government, issues in sociology, vulnerable groups, positive psychology, urban and rural development, methods identity and social capital, financial and monetary economics, gender, interdisciplinary studies, and labour economics. The table of contents lists the titles of papers presented in each section, along with the names of the authors and page numbers.
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Table of Content
Economic GrowthEconomic Growth
Lean Hooi Hooi
Tanjung 1
Page Number
Gerai atau Premis: Pengaruh Medium untuk Mengurangkan Ketidakpastian dalam
Keputusan Pembelian
Noraihan Mohamad and Mohd Sobhi Ishak
14
The Impact of Wage Structure on Industrial Competitiveness
Joko Susanto and Purwiyanta
24
Income Distribution and Environment: Empirical Evidence from Malaysia, Indonesia
and Singapore
Abdul Rahim Ridzuan, Nor Asmat Ismail, Abdul Fatah Che Hamat, Abu Hassan Shaari
Mohd Nor and Elsadig Musa Ahmed
34
The Impact of a Dynamic Environment on Budgetary Participation with Information
Processing as a Mediating Variable (An Empirical Study on Public SOE Managers
and Staff Perception in Indonesia)
Dian Indri Purnamasari, Rahmawati and Mulyanto
44
MESSAGE FROM
Youth and PsychologyAnd Psychology
Balaraju Nikku
Tanjung 2
Happiness and Meaningful Engagement through Teaching and Learning English
Workshop: A UNHCR Community-Based Project
M. Lee, S. Tan and S. Woo
58
Students’ Self-Efficacy: Does Work Integrated Learning Matter?
Hazril Izwar Ibrahim, Abdul Hadi Zulkafli, Khairul Annuar Mohammad Shah dan
Azlan Amran
66
Cyberbullying Behavior among Teens Moslem in Pekalongan Indonesia
Rita Rahmawati
74
Permissive Parenting Style and Psychotic Personality Trait among Delinquent
Children in Sabah
Siti Noor Fazariah Suis @ Mohd Rusdy Zulkarnaen Ahmad Hatta, Ferlis Bullare @
Bahari
81
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DD
Development Planning and Management Page Number
Bojonegoro District, The Best Governance Role in Indonesia’s Economic
Development and Poverty Alleviation
Sri Suryaningsum, Moch. Irhas Effendi, and R. Hendri Gusaptono
89
Kemampuan Memiliki Rumah dalam Kalangan Keluarga Bandar di Malaysia
Nor Malina Malek, Parthiban S. Gopal, Khoo Suet Leng, Mohamad Shaharudin
Samsurijan, Zahri Hamat
97
Kualiti Hidup dalam Pembangunan Kolej Kediaman Lestari: Satu Tinjauan Literatur
Mohd Reduan Buyung and Haryati Shafii
106
Matching Development Plan, Resources and Sustainable Livelihood in The Case of
Coastal Fishery Industry, Pangkor Island
Ho Siew Neo, Stella, Jamilah Mohamad and Nurulhuda Mohd Satar
114
Pogereha Razaligara
Politics and Government
eatraealau 2garar
The Evaluation of The Implementation of Regional Autonomy in Indonesia
Rudy Badrudin and Baldric Siregar
121
Formulation of The Service Delivery Democratic Model (Case Study Implementation
of the Citizens Charter in Public Health Service in Jayapura District, Papua Province,
Indonesia)
Soemedi Hadiyanto and Agustinus Fatem
129
Analysis of Financial Statements Disclosure of Local Government on The Level of
Corruption in Indonesia
Sucahyo Heriningsih, Rusherlistyani and Agussalim
138
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Issues in Sociology
Household Behaviour and Malaria Control: A Conceptual Overview
Ahmad Yahaya Maigemu and Kalthum Bt Haji Hassan
174
Some Empirical Responses to the McDonaldization Thesis
Ong Beng Kok
180
The Capability Approach: Comparing Sen and Nussbaum
Nithiya Guna Saigaran, Premalatha Karupiah and Parthiban S. Gopal
190
The Experience of Work of Kindergarten Teachers: A Critical Review of the
Literature and Some Preliminary Findings
Nurshakirin Sulaiman and Ong Beng Kok
198
The Role of Prison Criminogenic Experience and Social Stigma Towards Criminal
Recidivism: A Qualitative Approach
Aminu Musa Ahmed and Abd Halim Ahmad
205
Vulnegarewarerable Groups
Vulnerable Groups
Nurdin
Tanjung 1
Page Number
Pengalaman dan Sumber Maklumat Berkait Seks dalam Kalangan Penghuni Institusi
Perlindungan dan Pemulihan
Noor Azizah Ahmad, Rusimah Sayuti, Zakiyah Jamaluddin, Abdul Razak Abd Manaf,
dan Rajwani Md Zain
148
Residential Child Care and Foster Care: Critical Comparative Analysis on Literature
Chan Cheong Chong
156
Sokongan Sosial dalam Kalangan Remaja Hamil Tanpa Nikah
Zakiyah Jamaluddin, Abdul Razak Abd Manaf dan Rusimah Sayuti
166
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Positive Psychology
sagaeitaggaraive Psychology
Shiagang
Pulau 1
Page Number
Emotional Experiences during a Spiritual Journey
Zhooriyati, S. M, Intan, H. M. Hashim, & Zulkarnain, A. H.
214
Racial Microaggression among Malaysian University Students: Exploring the Themes
Mitshel Lino and Intan Hashimah Mohd Hashim
222
Brainwave Theta Signal Responses during Receptive Auditory Quranic and Non-
Quranic Stimulation: A Pilot Study
Nur Syairah Ab Rani, Muzaimi Mustapha, Faruque Reza, & Muhammad Amiri Ab
Ghani
230
Urban And Rural Development
Urban and Rural Development
Khoo Suet Leng
Pulau 2
Cabaran Kehidupan Penduduk Kampung Bandar dan Persekitarannya
Mohamad Shaharudin Samsurijan, Mohd Shukri Hanapi and Azahan Awang
238
The Local Perception on Social Impact of Indonesian Workers in the Rural Areas
Suziana Mat Yasin and Ibrahim Ngah
248
Potensi dan Pendekatan dalam Perancangan Pembangunan Pelancongan Pacuan
Komuniti di bawah Inisiatif Pusat Transformasi Luar Bandar (RTC) Kedah, Malaysia
Hartini Ahmad, Azhari Md Hashim and Nor Intan Saniah Sulaiman
256
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Methods, Identity and Social Capital Page Number
hods, Identity And Social Capital
Ong Beng Kok
Tanjung 1
Disability and Self-Identity: Auto-Ethnography Study
Khu Li Huang
264
Two Conceptions of Social Capital in Malaysia
Ahmad Shukri Abdul Hamid and Noor Azizah Ahmad
272
Teaching Research Methods: Common Problems and Misconceptions related to
Random Sampling
Premalatha Karupiah
280
Financial And Monetary Economics
Financial and Monetary Economics
or Asmat Ismail
Tanjung 2
Does Financial Development Promote Output Growth in West Africa? Evidence
from Cote D’Ivoire and Nigeria
Kizito Uyi Ehigiamusoe and Hooi Hooi Lean
284
An Islamic Based Human Development Index with Special Reference to Debt
Indicators
Nor Asmat Ismail
291
Foreign Direct Investment led Sustainable Development in Malaysia: An Application
of The Autoregressive Distributed Lag Model
Abdul Rahim Ridzuan, Nor Asmat Ismail, Abdul Fatah Che Hamat, Abu Hassan Shaari
Mohd Nor and Elsadig Musa Ahmed
303
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F
Gender
Gender
Shariffah Suraya Syed Jamaluddin
Pulau 2
Double Abandoned: Experiences and Narratives of Single Mothers de facto
Nor Hafizah Selamat, Farah Syazwani Hayrol Aziz and Noraida Endut
343
Am I in Bad Company? The Narrative of Feeling of Misery Amongst Psychiatric
Patients
Nur Zafifa Kamarunzaman and Nor Hafizah Selamat
351
Analysing Travel Experiences of Young Travelers at Penang Island using Netnography
Approach
Farah Syazwani Hayrol Aziz and Nor Hafizah Selamat
359
“Kill me but make me beautiful”: Cosmetic Nose Surgery and Embodiment of Pain
Reihaneh Attaran and Datin Rashidah Shuib
367
Perkahwinan Tanpa Kebenaran. Kajian di Negeri Perlis
Abdul Jalil Ramli, Noor Salwani Hussin, Shuhairimi Abdullah, Jamsari Jamaluddin,
Mohd Kasturi Nor Abdul Aziz dan Norhudi`in Danu
373
IInterdisciplinary
Balaraju Nikku
Pulau 1
Page Number
Satisfaction and Perception of Residents with Bioclimatic Design Strategies – A
Discovery from Racial and Ethnic Perspectives
Adi Ainurzaman Jamaludin
314
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Labour Economics
abour EcoLim Ee Shiang
Tanjung 2Term Time Employment among Tertiary Students: Evidence from Universiti Sains
Malaysia
Tong Sheng Tan, Eivon Lim and Yiing Jia Loke
421
The Influence of Need for Achievement and Risk Propensity on Income Increasing
Earnings Management
Eko Widodo Lo
431
Challenges of Private Retirement Scheme (PRS) in Malaysia
Azlin Namili. Mohd. Ali @ Ramli, Asmah Laili Yeon, dan Mohammad Azam Hussain
439
Unemployment among Graduates of Public and Private Universities in The Klang
Valley
Cheong Jia Qi
445
Politics and Administration
Politics And Administration
Benny Teh Cheng Guan
Tanjung 1
Page Number
Linking Fairness to Performance – A View from Budget Setting Perspective
Mohd Nor Yahaya and Jegak Uli
382
Pampasan Gantirugi dalam Kes-kes Kemalangan Jalan Raya di Malaysia dalam
Perundangan Sivil dan Islam: Suatu Kajian Kes
Siti Khadijah Mohd Khaira, & Nuarrual Hilal Md Dahlan
390
Getting the Right Candidate: A Case Study of Five Public Sector Organizations’
Selection Criteria
Noreha Hashim
398
An Identification of the Likely Policy Consequences of the Sarawak Corridor of
Renewable Energy (SCORE) on the Affected Agricultural Areas in Central Sarawak
Noreha Hashim & Daniel Ugih Echoh
404
The Ambiguous Political System: The Case of Malaysia’s Hybrid Regime
Siti Zuliha Razali
411
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Emotion and Aggression Page Number
Recovery Experience of Young Depressed Females in Malaysia: A Microsystemic
Perspective
Jin Kuan Kok, Pei Yii Woon, and Kai Shuen Pheh
455
Mediators Involved in The Relation Between Vulnerability and Depression in Married
Women of Malaysia
Nor Ba’yah Abdul KadirSession 4
Chairperson
Room
Rights And Health
Premalatha Karupiah
Pulau 2
9.00 AM – 10.30 AM
Kebebasan Beragama: Hak Peribadi atau Hak Negara?
Rohizan Halim dan Yuhanif Yusof
A Conceptual Study of Breastfeeding and Postpartum Mothers: A Malaysian
Perspective
Maria Aloysius, and Shariffah Suraya Syed Jamaludin
Digital Identity, Digital Other, Digital Community: Malaysian Youths’ Experience
with Social Networking Sites
Azrina Husin
Women’s Public Office Positions in Islāmic Jurisprudence: The Case of Malaysia
Asar Ak, Bouhedda Ghalia and Mohd Rashid Bin Ab Hamid
464
Muslimah Women and Moneylenders (Legal Cultural Study about The Loan
Agreement between Muslimah Women and Moneylenders in Indonesia)
Triana Sofiani
471
Does Perceived Racial Discrimination Increase Aggression?
Chng Bao Zhong and Chee-Seng Tan
480
Menerokai Budaya Hedonisme Dalam Kalangan Remaja: Penyelesaian Dari
Sudut Agama
Abdul Jalil Ramli, Shuhairimi Abdullah, Jamsari Jamaluddin, Mohd Kasturi Nor
Abdul Aziz dan Noor Salwani Hussin
488
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Rights and Health
malatha Karupiah
Pulau 2
Page Number
Kebebasan Beragama: Hak Peribadi atau Hak Negara?
Rohizan Halim dan Yuhanif Yusof
A Conceptual Study of Breastfeeding and Postpartum Mothers: A Malaysian
Perspective
Maria Aloysius, and Shariffah Suraya Syed Jamaludin
Digital Identity, Digital Other, Digital Community: Malaysian Youths’ Experience
with Social Networking Sites
Azrina Husin
Women’s Public Office Positions in Islāmic Jurisprudence: The Case of Malaysia
Asar Ak, Bouhedda Ghalia and Mohd Rashid Bin Ab Hamid
Empowering Local Knowledge: Perception of Postpartum Mothers on Food Served
in the Maternity Ward, Government Hospital
Sharifah Suraya. Syed Jamaludin
Interventions In Social Work
Bantuan Demokrasi di Malaysia: Satu Sorotan Preliminari
Muhamad Takiyuddin Ismail dan Muhammad Febriansyah
545
Clinical Trials: The Conflict between the Doctors’ Financial Interests of in
Recruiting Patients and The Patients’ Best Interests in Malaysia
Yuhanif Yusof, Rohizan Halim and Ahmad Masum
555
Hukuman Jenayah dan Preventasi HIV/AIDS: Satu Tinjauan
Marina Hj Hashim dan Anita Abd. Rahim
562
Corporate Social Responsibility for Children’s Education in the Rural Areas:
Insights from Literature Review
Athirah Azhar
571
Pengertian Hidup Golongan Gelandangan: Satu Kajian di Kuala Lumpur
Farrah Wahida Mustafar dan Faudziah Yusof
580
498
506
516
526
535
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Science And Social Perspectives
Science And Social Perspectives
Mohamad Shaharudin Samsurijan
Tanjung 2
Page Number
Conceptual Analysis of E-recruitment; The Role of Web-Site Usability and
Organizational Attraction of Personnel in Nigeria
Naziru Mohammed Musalli, Azhar Harun and Ruslan Zainuddin
593
Risk Assessment on General Safety in Air Separation Unit of a Gas Process Plant
Nurul Muhayuni Mahayuddin and Fathiah Mohamed Zuki
600
Stress And Anxiety
Stress and Anxiety
araju Nikku
Pulau 1
Personality and Commitment : A Case Study at Ahmad Dahlan University
Erita Yuliasesti Diahsaria and Tristiadi Ardi Ardani
609
Psychological Empowerment, Work Stress and Organizational Commitment among
Academic Staff in Malaysian Public Universities
Farah Lina Azizan, Aflah Isa and Noor Afzainiza Afendi
616
Validation of the State-Trait Inventory for Cognitive and Somatic Anxiety in a
Sample of Malaysian Undergraduates
Tan Chee Seng, Lim Jia Wei, Low Mei Yan, Phang Joo Yee and Tan Ting Ying
624
The Reliability and Factor Analysis of Utrecht Work Engagement Scale (UWES-17)
Uma Devi Nagalingam , Fatimah Omar, Nor Ba’yah Abdul Kadir and Suzana Mohd.
Hoesni
633
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Industrial Economics
Industrial Economics
ean Hooi Hooi
Pulau 2
Page Number
The Relationship between Market Concentration and Performance: Evidence from
Malaysian General Insurance Industry
Chia Sin Yee, Keoh Leong Yong and Lim Ee Shiang
640
Knowledge Sources and In-House R&D Among Small and Medium Sized
Enterprises: Evidence from The Malaysian Manufacturing Sector
Lim Ee Shiang and Jacqueline Fernandez
650
The Process of Developing Cost Management Skills Curriculum for Small and
Medium Enterprises’ (SMEs) Training Programmes
Muhammad Rosni Amir Hussin, Kamariah Ismail and Rose Alinda Alias
660
Issues Affecting The Adoption of HRIS in Banks
Abdul Kadar Muhammad Masum, Md. Abul Kalam Azad, Dr. Loo-See Beh
669
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ECONOMIC GROWTH
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Gerai atau Premis: Pengaruh Medium untuk Mengurangkan Ketidakpastian
dalam Keputusan Pembelian
Noraihan Mohamada,*, Mohd Sobhi Ishakb
a&bUniversiti Utara Malaysia, Sintok, Kedah, Malaysia
Email: noraihanmohamad@gmail.coma
, msobhi@uum.edu.myb
Abstrak
Berpandukan kepada Teori Kekayaan Media, kajian ini bertujuan untuk melihat pengaruh jalinan
antara medium sebagai elemen yang dapat mengukuhkan pengetahuan dan kefahaman pengguna
mengenai produk perkomputeran yang akhirnya mempengaruhi keputusan pembelian mereka di
gerai jualan dan premis perniagaan. Fokus diberikan kepada elemen risalah, media sosial,
rakan-rakan, perniagaan alternatif dan perniagaan sasaran sebagai medium maklumat yang akan
menjelaskan ketidakpastian pengguna tentang harga, jenama, kualiti, jaminan, fungsi dan reka
bentuk produk. Kajian tinjauan keratan rentas dijalankan melalui edaran borang soal selidik
terhadap 75 orang pengguna yang membeli produk perkomputeran di gerai jualan dan premis
perniagaan. Analisis deskriptif menunjukkan jalinan antara risalah, perniagaan sasaran dan
perniagaan alternatif adalah medium utama yang dapat mengurangkan ketidakpastian pengguna
mengenai produk di gerai jualan. Manakala jalinan antara rakan-rakan, media sosial dan
perniagaan sasaran menjadi keutamaan pengguna yang membeli di premis perniagaan.
Kesimpulannya, wujud pengaruh antara jalinan pelbagai media dengan keputusan pembelian
pengguna sama ada di gerai jualan atau premis perniagaan iaitu melalui maklumat-maklumat yang
dapat mengukuhkan pengetahuan dan kefahaman pengguna mengenai produk.
Kata kunci: Teori Kekayaan Media; Jalinan media; Keputusan pembelian.
1. Pengenalan
Pembuatan keputusan pembelian menjelaskan tentang proses kognitif individu dalam membuat
pemilihan terhadap suatu produk berbanding produk alternatif. Ia boleh dipengaruhi oleh banyak
perkara seperti elemen pengiklanan, pemasaran, media, faktor persekitaran dan sebagainya
(Huang dan Ho, 2015). Salah satu daripada faktor yang memberi pengaruh ialah medium carian
maklumat yang digunakan individu untuk mengenal pasti ciri-ciri dan nilai bagi suatu produk.
Medium seperti keluarga, rakan-rakan, internet, jurujual, risalah dan sebagainya adalah antara
yang sering menjadi rujukan pengguna dalam membuat penilaian terhadap produk sebelum
membuat keputusan untuk membeli (Hamilton, Richards dan Stiegert, 2013). Setiap daripada
medium ini mempunyai jalinan yang memberi pengaruh secara berbeza terhadap sikap dan
tingkah laku pembelian pengguna di mana, ia menyampaikan maklumat, memberi kesedaran dan
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menggalakkan penggunaan atau pembelian pengguna terhadap produk yang disampaikan (Gluck
dan Bruner, 2005; Schoon dan van Velzen, 2008; Awais, Samin dan Bilal, 2012). Jalinan antara
pelbagai medium menunjukkan bahawa penyebaran maklumat boleh berlaku dalam pelbagai
bentuk yang melangkaui batasan masa dan lokasi. Sebagai contoh, komunikasi dari mulut ke
mulut (Word-of-Mouth – WOM) yang mana ia boleh berlaku secara komunikasi bersemuka
(Face-to-Face) mahupun secara dalam talian (electronic Word-of-Mouth – eWOM). Dalam
konteks penggunaan, pendedahan pengguna terhadap pelbagai maklumat daripada pelbagai media
secara tidak langsung akan mempengaruhi sikap dan tingkah laku pembeliannya (Pavlou dan
Stewart, 2010). Bermaksud, jalinan antara medium maklumat dapat membantu pengguna untuk
membina kefahaman mengenai suatu produk sebelum membuat keputusan pembelian.
1.1 Latar belakang Kajian
Media merujuk kepada medium penyebaran maklumat yang berperanan sebagai medan yang
menghubungkan antara penyampai dan penerima maklumat (Huang dan Ho, 2015). Dalam
konteks kajian, media merujuk kepada medium yang berada di sekeliling individu pengguna yang
sering menjadi rujukan mereka untuk mencari informasi, menilai dan membina kefahaman
mengenai produk sebelum membuat keputusan pembelian. Berdasarkan itu, kajian mencadangkan
bahawa jalinan antara medium yang dicirikan kepada risalah, media sosial, rakan-rakan,
perniagaan alternatif dan perniagaan sasaran mampu untuk mengukuhkan kefahaman pengguna
mengenai produk perkomputeran yang akhirnya mempengaruhi keputusan pembelian mereka.
Realitinya, keputusan pengguna untuk membeli suatu produk tidak hanya bergantung kepada
maklumat yang bersumberkan kepada satu medium sahaja. Sebaliknya, kecenderungan untuk
mengurangkan risiko atau ketidakpastian dalam pembelian akan mendorong mereka untuk
mengukuhkan kefahaman mengenai produk. Justeru, pengguna akan bertindak mencari informasi
tambahan dari satu medium ke medium yang lain di sekeliling mereka agar kefahaman yang
terbina bukan sahaja dapat menjelaskan ketidakpastian malah mampu membentuk keyakinan
dalam membuat keputusan pembelian.
Penerapan kajian terhadap konsep jalinan antara medium risalah, media sosial, rakan-rakan,
perniagaan alternatif dan perniagaan sasaran adalah berdasarkan kepada medium yang menjadi
kebiasaan bagi seseorang pengguna dalam mendapatkan maklumat mengenai suatu produk. Bagi
menjelaskan lagi konsep tersebut, kajian melihat pengaruhnya terhadap kumpulan pengguna yang
membeli produk perkomputeran di gerai jualan dan premis perniagaan iaitu sebagai medium yang
menjelaskan ketidakpastian pengguna dari sudut harga, jenama, kualiti, jaminan, fungsi dan reka
bentuk produk perkomputeran yang terdiri daripada komputer dan pencetak. Menurut kajian oleh
Martz dan Reddy (2005), pencarian maklumat melalui medium yang pelbagai juga menerangkan
tentang kekayaan media berbanding pencarian yang hanya melibatkan satu medium sahaja.
Justeru, kajian mengemukakan bahawa, konsep jalinan antara pelbagai medium ini adalah
spektrum kepada konsep kekayaan media.
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2. Teori Kekayaan Media
Asas kepada pembangunan Teori Kekayaan Media (Media Richness Theory – MRT) oleh Daft
dan Lengel (1984) adalah untuk meneroka hubungan antara kekayaan media dengan prestasi kerja
individu dalam melaksanakan tugas organisasi. Kekayaan media didefinisikan sebagai media
yang berpotensi iaitu keupayaan media untuk membawa data atau maklumat tertentu (Daft dan
Lengel, 1984; Mandal dan McQueen, 2013). Konsep asas MRT ialah tahap kekayaan suatu media
itu bergantung kepada tahap keupayaannya untuk mengurangkan ketidakpastian (uncertainty) dan
keraguan (equivocality) dalam maklumat (Daft dan Lengel, 1984; Yue, 2014). Terdapat empat
indikator yang dikemukakan dalam menentukan tahap kekayaan suatu media iaitu memberi
maklum balas segera, menyediakan isyarat pelbagai, menggunakan bahasa yang natural dan fokus
kepada personal individu (Daft dan Lengel, 1984). Berdasarkan itu, komunikasi bersemuka
diposisikan sebagai medium yang memiliki tahap kekayaan tertinggi berbanding emel, memo,
buletin dan sebagainya. Pengaruh MRT telah diuji dalam pelbagai konteks kajian. Antaranya ialah
laman web korporat (Cho et al., 2009), pendidikan jarak jauh (Martz dan Reddy, 2005),
pengiklanan (Schoon dan van Velzen, 2008; Chi-Lun, 2014), komunikasi dan hubungan sosial
individu (Sheer, 2011; Liu, Rau dan Wendler, 2014; Yue, 2014) dan sebagainya.
Pengaplikasian MRT oleh kajian lalu kebanyakannya membandingkan tahap kekayaan antara
media seperti tahap kekayaan antara komunikasi bersemuka, video dan medium berkomputer
(Rockman dan Northcraft, 2008), video, teks dan audio (Otondo et al., 2008), komunikasi,
videokonferensi dan perbualan dalam talian (Dickinson, 2012; Liu, Rau dan Wendler, 2014), emel
dan WeChat (Yue, 2014) dan sebagainya. Penumpuan terhadap elemen kekayaan media melalui
konsep jalinan antara medium dilihat kurang mendapat perhatian kajian terdahulu sama ada dalam
konteks media mahupun penggunaan. Justeru itu, MRT diaplikasikan untuk melihat bagaimana
konsep jalinan antara medium dapat menjelaskan tekanan ketidakpastian pengguna berkenaan
produk yang dicirikan kepada harga, jenama, kualiti, jaminan, fungsi dan reka bentuk akhirnya
dapat mempengaruhi keputusan pembelian mereka.
3. Sorotan Literatur
Konsep jalinan antara medium menjelaskan bahawa kefahaman pengguna terbina daripada satu
medium ke medium yang lain. Bermula daripada medium asas pengiklanan iaitu risalah, jalinan
antara medium turut memperlihatkan pengaruh media sosial, rakan-rakan, perniagaan alternatif
dan perniagaan sasaran sebagai medium maklumat kepada pengguna berkenaan produk. Risalah
adalah medium pengiklanan yang biasa digunakan oleh sesebuah perniagaan khususnya
perniagaan perkomputeran dalam menyampaikan maklumat berkenaan produk kepada pengguna
(Seymour, 2006). Bermaksud, ia adalah medium pengiklanan terawal yang diterima pengguna
yang menyediakan asas mengenai produk. Keterbatasan ciri-ciri kekayaan yang dimilikinya
menyebabkan wujud tekanan ketidakpastian (Daft dan Lengel, 1984) yang memerlukan pengguna
untuk menjalinkannya dengan medium-medium yang lain. Dalam fasa perkembangan teknologi
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hari ini, kecenderungan pengguna untuk membina pengetahuan mengenai suatu produk
kebanyakannya terarah kepada medium secara atas talian khususnya media sosial.
Media sosial adalah rangkaian internet yang terdiri daripada Facebook, Instagram, blog, Twitter
dan sebagainya yang sentiasa menjadi rujukan individu dalam pelbagai perkara (Hoffman dan
Novak, 2012). Kefahaman pengguna mengenai produk boleh terbina melalui maklumat yang
dikongsikan oleh perniagaan perkomputeran lain dan perkongsian pengalaman dalam kalangan
pengguna internet. Berdasarkan kepada hierarki kekayaan media, medium atas talian seperti
Facebook emel dan laman web berkeupayaan rendah dalam mengurangkan tekanan
ketidakpastian (Simon dan Peppas, 2004; Manda dan McQueen, 2013; Yue, 2014). Apatah lagi, ia
sering dikaitkan dengan isu kredibiliti yang mana akan mempengaruhi tahap kepercayaan
pengguna. Ini memperlihatkan bahawa pengguna memerlukan jalinan daripada rangkaian medium
lain yang dapat menyokong proses pengukuhan kefahaman dengan lebih baik. Rakan-rakan
adalah individu terdekat dengan pengguna yang mempunyai keterikatan dari sudut emosi dan
sosial yang mempengaruhi kepercayaan dan keputusan pengguna terhadap produk (Chi-Lun,
2014). Komunikasi antara pengguna dengan rakan-rakan boleh berlaku sama ada secara
bersemuka atau atas talian. Kefahaman pengguna terbina apabila rakan-rakan memberi isyarat
sosial kepada pengguna iaitu melalui perkongsian maklumat, pandangan dan pengalaman
mengenai produk. Isyarat sosial oleh medium rakan-rakan ini juga akan membentuk persepsi
pengguna terhadap produk yang mana akan mempengaruhi keputusan pembelian mereka
(Thorson dan Rodgers, 2010).
Walau bagaimanapun, maklumat daripada medium rakan-rakan ini hanya berdasarkan kepada
pengalaman dan pengetahuan asas mereka mengenai produk. Pengguna yang masih tidak jelas
ketidakpastiannya terdorong untuk mendapatkan spesifikasi produk dengan lebih terperinci
melalui perniagaan alternatif iaitu perniagaan lain di dalam pasaran yang menawarkan produk
dalam satu kategori yang sama. Carian maklumat melalui perniagaan alternatif adalah tindakan
pengguna untuk membina keyakinan sebelum membuat keputusan pembelian dengan perniagaan
sasaran. Perniagaan sasaran merujuk kepada perniagaan yang mengiklankan produk melalui
risalah yang diterima pengguna. Komunikasi bersemuka antara pengguna dengan perniagaan
alternatif dan perniagaan sasaran akan menjelaskan ketidakpastian melalui penilaian terhadap
produk secara langsung dengan berasaskan kepada pengetahuan dan kefahaman yang telah terbina
melalui jalinan antara medium sebelumnya. Hierarki kekayaan menunjukkan komunikasi
bersemuka mempunyai tahap kekayaan tertinggi kerana ciri-ciri kekayaannya membolehkan
ketidakpastian pengguna dijelaskan dalam masa yang singkat (Daft dan Lengel, 1984).
4. Metodologi Kajian
Kajian berbentuk tinjauan keratan rentas (cross-sectional) ini dijalankan melalui edaran borang
soal selidik kepada responden. Berdasarkan teknik persampelan bertujuan (purposive sampling),
sebanyak 80 borang kaji selidik telah diedarkan kepada pengguna yang membeli produk
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perkomputeran di gerai jualan dan premis perniagaan. Daripada jumlah itu, hanya 75 borang soal
selidik sahaja yang lengkap untuk dianalisis iaitu 35 dari gerai jualan dan 40 dari premis
perniagaan.
Instrumen kajian dibangunkan berdasarkan kepada konsep kekayaan media dan tingkah laku
pembelian pengguna. Bahagian pertama dalam borang soal selidik bertujuan untuk mendapatkan
maklumat demografi responden. Bahagian kedua adalah untuk meneroka tingkah laku pembelian
responden. Manakala, bahagian ketiga bertujuan untuk mengenal pasti pengaruh jalinan antara
medium terhadap pengukuhan kefahaman dan keputusan pembelian pengguna. Persoalan
berbentuk kedudukan (ranking) diaplikasikan yang memerlukan responden untuk menentukan
tahap keutamaan bagi medium maklumat dan faktor ketidakpastian. Hanya persoalan mengenai
pengaruh medium terhadap keputusan pembelian responden yang menggunakan skala Likert tujuh
tahap (1=sangat tidak mempengaruhi, 7=sangat mempengaruhi).
Analisis statistik deskriptif dijalankan melalui perisian IBM SPSS Statistics 21.0 untuk
memperihalkan maklumat demografi responden, pengaruh jalinan antara medium dan faktor
ketidakpastian responden mengenai produk. Jantina responden diperihalkan dalam bentuk
kekerapan dan peratus manakala, umur diperihalkan dalam bentuk nilai min dan sisihan piawai.
Bagi persoalan yang berbentuk kedudukan, kekerapan dan peratusan digunakan untuk
menentukan jumlah skor tertinggi. Jumlah skor akan menentukan tahap keutamaan bagi medium
maklumat, jalinan antara medium yang mengukuhkan kefahaman responden dan faktor
ketidakpastian responden mengenai produk.
5. Hasil Kajian
5.1 Profil Demografi
Sebanyak 75 borang soal selidik telah dijawab oleh responden yang membeli produk
perkomputeran dengan 35 daripadanya diperolehi di gerai pameran manakala baki 40 di premis
perniagaan. Daripada jumlah itu, 28 orang (37.3%) adalah lelaki dan 47 orang (62.7%) adalah
perempuan dengan purata umur adalah 25 tahun. Pembelian di gerai pameran menunjukkan
majoriti pengguna membeli produk pencetak (60%) berbanding produk komputer (40%).
Manakala, pembelian di premis perniagaan menunjukkan majoriti pembelian melibatkan produk
komputer (67.5%) berbanding produk pencetak (32.5%).
5.2 Medium Maklumat Pengguna
Medium maklumat pengguna menjelaskan tentang bagaimana jalinan antara medium dapat
menyediakan informasi kepada pengguna mengenai produk. Jadual 1 menunjukkan medium yang
menjadi keutamaan pengguna untuk mendapatkan informasi mengenai produk perkomputeran di
gerai jualan dan premis perniagaan. Hasil analisis menunjukkan jalinan antara risalah, perniagaan
sasaran dan perniagaan alternatif berpengaruh sebagai medium yang menyediakan informasi
kepada pengguna yang membeli produk perkomputeran di gerai jualan. Manakala pengetahuan
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pengguna yang membeli di premis perniagaan disokong oleh jalinan antara medium rakan-rakan,
media sosial dan perniagaan sasaran.
Jadual 1: Medium Maklumat Pengguna Mengikut Keutamaan
Gerai Jualan Premis Perniagaan
Tahap
Keutamaan
R
(%)
MS
(%)
Rk
(%)
PA
(%)
PS
(%)
R
(%)
MS
(%)
Rk
(%)
PA
(%)
PS
(%)
1 62.9 2.9 5.7 11.4 14.3 5.0 12.5 50.0 7.5 25.0
2 28.6 11.4 8.6 2.9 48.6 2.5 35.0 27.5 10.0 22.5
3 8.6 5.7 28.6 40.0 17.1 2.5 32.5 17.5 20.0 40.0
4 - 17.1 48.6 22.9 8.6 10.0 15.0 5.0 50.0 7.5
5 - 62.9 8.6 22.9 8.6 80.0 5.0 - 12.5 5.0
1=Keutamaan tinggi, 5=Keutamaan rendah; R=Risalah; MS=Media sosial; Rk=Rakan; PA=Perniagaan alternatif;
PS=Perniagaan sasaran.
5.3 Faktor Ketidakpastian dan Medium Pengukuhan Kefahaman Pengguna
Ketidakpastian pengguna mengenai produk akan mempengaruhi pertimbangannya dalam
membuat keputusan. Jadual 2 menunjukkan faktor ketidakpastian terhadap ciri-ciri produk yang
menjadi keutamaan pengguna. Analisis deskriptif menunjukkan faktor harga produk menjadi
keutamaan pengguna yang membeli produk perkomputeran di gerai jualan diikuti oleh fungsi dan
kualiti produk. Dapatan yang hampir serupa turut diperolehi daripada pengguna yang membeli di
premis perniagaan di mana, keutamaan tertumpu kepada harga produk diikuti oleh kualiti dan
fungsi produk.
Jadual 2: Faktor Ketidakpastian Pengguna Terhadap Produk
Gerai Jualan Premis Perniagaan
Tahap
Keutamaan
H
(%)
Jn
(%)
K
(%)
J
(%)
F
(%)
Rk
(%)
H
(%)
Jn
(%)
K
(%)
J
(%)
F
(%)
Rk
(%)
1 51.4 5.7 22.9 5.7 17.1 - 45.0 5.0 35.0 - 15.0 -
2 25.7 8.6 22.9 5.7 37.4 - 25.0 7.5 37.5 12.5 15.0 2.5
3 17.1 17.1 40.0 8.6 14.3 2.9 12.5 25.0 15.0 12.5 30.0 5.0
4 2.9 40.0 11.4 22.9 20.0 8.6 10.0 15.0 12.5 27.5 20.0 15.0
5 2.9 20.0 2.9 48.6 5.7 14.3 7.5 12.5 - 17.5 17.5 45.0
6 - 8.6 - 8.6 5.7 74.3 - 35.0 - 30.0 2.5 32.5
1=Keutamaan tinggi, 6=Keutamaan rendah; H=Harga; Jn=Jenama; K=Kualiti; J=Jaminan; F=Fungsi; Rk=Reka
bentuk
Jadual 3 menunjukkan pengaruh medium yang dapat mengukuhkan kefahaman pengguna
mengenai produk secara khusus. Analisis terhadap pengguna yang membeli di gerai jualan
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mendapati ketidakpastian pengguna berkenaan harga dan jenama produk diperkukuhkan oleh
jalinan antara perniagaan sasaran, risalah dan perniagaan alternatif. Manakala, jalinan antara
perniagaan sasaran, perniagaan alternatif dan rakan-rakan mengukuhkan kefahaman pengguna
dari sudut jaminan, fungsi dan reka bentuk produk. Bagi pengguna yang membeli di premis
perniagaan, ketidakpastian dari sudut harga, jenama, kualiti, jaminan, fungsi dan reka bentuk
produk telah diperkukuhkan oleh maklumat yang diperolehi melalui jalinan antara perniagaan
sasaran, rakan-rakan dan perniagaan alternatif
Jadual 3: Medium Pengukuhan Kefahaman Pengguna Mengenai Produk
R=Risalah; MS=Media sosial; Rk=Rakan; PA=Perniagaan alternatif; PS=Perniagaan sasaran.
5.4 Pengaruh Medium Terhadap Keputusan Pembelian Pengguna
Pengaruh jalinan antara medium dalam menyampaikan maklumat mengenai produk
mempengaruhi keputusan pembelian pengguna. Skala Likert tujuh tahap (1=sangat tidak
mempengaruhi, 7=sangat mempengaruhi) diaplikasikan untuk mengukur pengaruh medium
maklumat terhadap keputusan pembelian pengguna. Jadual 4 menunjukkan medium yang
mempengaruhi keputusan pembelian pengguna terhadap produk perkomputeran di gerai jualan
dan premis perniagaan. Perniagaan sasaran didapati menjadi medium utama yang mempengaruhi
keputusan pengguna di kedua-dua pusat pembelian. Walau bagaimanapun, medium seperti
perniagaan alternatif, rakan-rakan, media sosial dan risalah memperlihatkan pengaruh yang
berbeza terhadap pengguna yang membeli di gerai jualan dan premis perniagaan.
Jadual 4: Medium Berpengaruh Terhadap Keputusan Pembelian Pengguna
Gerai Jualan Premis Perniagaan
Medium Berpengaruh Purata Sisihan
Piawai
Purata Sisihan
Piawai
Perniagaan sasaran
6.57
0.608 6.48 0.716
Perniagaan alternatif
5.69
0.963 5.65 1.145
Rakan-rakan 0.769 5.70 1.091
Gerai Jualan Premis Perniagaan
R
(%)
MS
(%)
Rk
(%)
PA
(%)
PS
(%)
R
(%)
MS
(%)
Rk
(%)
PA
(%)
PS
(%)
Harga 54.3 25.7 28.6 37.1 57.1 20.0 17.5 42.5 15.0 62.5
Jenama 31.4 17.1 31.4 37.1 51.4 10.0 17.5 45.0 30.0 62.5
Kualiti 37.1 8.6 45.7 31.4 71.4 - 7.5 47.5 42.5 72.5
Jaminan 17.1 5.7 34.3 42.9 68.6 - - 7.5 27.5 87.5
Fungsi 20.0 20.0 40.0 42.9 62.9 2.5 15.0 55.0 37.5 85.0
Reka bentuk 11.4 17.1 40.0 51.4 54.3 7.5 15.0 45.0 32.5 70.0
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5.69
Risalah 5.63 0.690 3.65 1.350
Media sosial 3.37 0.690 4.75 1.296
5. Kesimpulan dan Cadangan
Secara keseluruhan, kajian ini bertujuan untuk mengenal pasti pengaruh jalinan antara beberapa
medium komunikasi terhadap tingkah laku dan keputusan pembelian pengguna. Dalam kemajuan
teknologi komunikasi masa kini, medium Internet khususnya media sosial adalah sumber
maklumat yang menjadi kebiasaan bagi seseorang pengguna. Dapatan kajian menunjukkan media
sosial adalah antara medium yang menjadi rujukan utama pengguna mengenai produk. Namun,
ciri-ciri kekayaannya tidak cukup untuk mengukuhkan pengetahuan dan kefahaman pengguna
mengenai produk secara khusus, selain tidak mempengaruhi keputusan pembelian pengguna.
Hasil analisis mendapati, jalinan antara perniagaan sasaran, perniagaan alternatif dan rakan-rakan
berperanan sebagai medium yang mempengaruhi keputusan pembelian pengguna yang membeli
di gerai jualan mahupun premis perniagaan. Jalinan antara medium ini didapati turut
mengukuhkan ketidakpastian pengguna di premis perniagaan dari sudut harga, jenama, kualiti,
jaminan, fungsi dan reka bentuk produk. Dapatan kajian ini mengukuhkan konsep yang
diketengahkan oleh MRT iaitu komunikasi secara bersemuka adalah medium yang mempunyai
hierarki kekayaan tertinggi berbanding medium-medium yang lain (Daft dan Lengel, 1986).
Justeru, dapat disimpulkan bahawa keputusan pengguna dalam pembelian produk perkomputeran
di gerai jualan dan premis perniagaan banyak dipengaruhi oleh jalinan antara medium yang
melibatkan komunikasi interpersonal secara bersemuka berbanding medium yang lain. Keputusan
pembelian yang berasaskan jalinan antara beberapa medium maklumat juga adalah lebih berkesan
berbanding keputusan yang hanya berasaskan satu medium maklumat sahaja. Kajian lanjutan
dicadangkan untuk melihat lain-lain medium secara terperinci dan mengukur kredibilitinya dalam
mempengaruhi keputusan pembelian seseorang pengguna.
6. Rujukan
Awais, M., Samin, T., dan Bilal, M., 2012. Valuable internet advertising and customer satisfaction
cycle (VIACSC). International Journal of Computer Science Issues, 9(1), pp. 375-80.
Chi-Lun, L., 2014. The impact of social cues and effectiveness in check-in advertising.
Kybernetes, [e-jurnal] 43(7). Didapati melalui: Laman web Perpustakaan Universiti Utara
Malaysia <http://www.lib.uum.edu.my/psb/> [Diakses 25 Disember 2014].
Cho, C., H., Phillips, J., R., Hageman, A., M., dan Patten, D., M., 2009. Media richness, user trust,
and perceptions of corporate social responsibility. Accounting, Auditing & Accountability
Journal, [e-jurnal] 22(6). Didapati melalui: Laman web Perpustakaan Universiti Utara Malaysia
<http://www.lib.uum.edu.my/psb/> [Diakses 28 November 2014].
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Daft, R., L., dan Lengel, R., H., 1984. Information richness: A new approach to managerial
behavior and organization design. In B. M. Staw & L. L. Cummings (Eds.), Research in
Organizational Behavior, 6, pp. 191-233. Greenwich, CT: JAI.
Dickinson, T., M., 2012. An inefficient choice: An empirical test of media richness and electronic
propinquity. DEd. Ohio State University. Didapati di: <https://etd.ohiolink.edu/> [Diakses 30
Disember 2014].
Gluck, M., dan Bruner., R., E., 2005. The evolution of rich media advertising: Current market
trends, success metrics and best practices. [pdf] New York: DoubleClick. Didapati di:
<static.googleusercontent.com/media/> [Diakses 3 Januari 2015].
Hamilton, S., F., Richards, T., J., dan Stiegert, K., W., 2013. How does advertising affect market
performance? A Note on generic advertising. Economic Inquiry, 51(2), [atas talian] Didapati di
<http://ssrn.com/abstract=2225672> [Diakses 3 May 2015].
Hoffman, D. L. dan Novak, T. P., 2012. Why do people use social media? Empirical findings and
a new theoretical framework for social media goal pursuit. Research Supported by The National
Science Foundation, [atas talian] Didapati di <http://ssrn.com/abstract=1989586> [Diakses 28
Oktober 2013].
Huang, W., T., dan Ho, H., F., 2015. Media effectiveness on comodity purchase behavior of
university student in Taiwan. Asian Social Science, 11(4), pp. 378-85.
Liu, J., Rau., P., L., P., dan Wendler, N., 2014. Trust and online information-sharing in close
relationships: a cross-cultural perspective. Behaviour & Information Technology, [e-jurnal].
Didapati melalui: Laman web Perpustakaan Universiti Utara Malaysia
<http://www.lib.uum.edu.my/psb/> [Diakses 28 November 2014].
Mandal, D., dan McQueen, R., J., 2013. Extending media richness theory to explain social media
adoption by microbusinesses. Te Kura Kete Aronui, [atas talian] Didapati di <http://
www.waikato.ac.nz> [Diakses 19 November 2014].
Martz, W., B., dan Reddy, V., K., 2005. Looking for indicators of media richness theory in
distance education. Proceedings of the 38th Hawaii International Conference on System Sciences.
Hawaii, 3-6 January 2005. United State. IEEE.
Otondo, R., F., Van Scotter, J., R., Allen, D., G., dan Palvia., P., 2008. The complexity of
richness: Media, message, and communication outcomes. Information & Management, 40(2008),
pp. 21-30.
Pavlou, P., A., dan Stewart, D., W., 2010. Measuring the effects and effectiveness of interactive
advertising: A research agenda. Journal of Interactive Advertising, 1(1), pp. 62-78.
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Rockmann, K., W., dan Northcraft, G., B., 2008. To be or not to be trusted: The influence of media
richness on defection and deception. Organizational Behavior and Human Decision Processes,
[atas talian] 107(2008),
Didapati di: <http://www.sciencedirect.com/science/article/pii/S0749597808000149> pp.
106-122.
Schoon, M., dan van Velzen, C., 2008. Rich media effect: Three theories reviewed based upon 3D
advertising. Journal of Interactive Advertising, 1(6).
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di: < http://www.smallbusinessbrief.com> [Diakses 10 May 2015].
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Development: The Impact of Media Richness and Communication Control. Communication
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<http://www.lib.uum.edu.my/psb/> [Diakses 22 November 2014].
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site design: an empirical study. Info, 6(4), pp. 270-81.
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perceived interactivity, and parasocial interaction. Journal of Interactive Advertising, 6(2), pp.
34-44.
Yue, Z., Z., 2014. Which will you choose, email or WeChat? Media richness, social presense,
self-esteem and media preference among Chinese young people. DEd. Chinese University of
Hong Kong. Didapati di: <pg.com.cuhk.edu.hk/pgp_nm/projects/2014/YUEzhiying> [Diakses 22
November 2014].
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The Impact of Wage Structure on Industrial Competitiveness
Joko Susantoa, Purwiyantab
a
UPN “Veteran” Yogyakarta, Yogyakarta Special Region, Indonesia
Email: jk.susanto.68@gmail.coma
, purwiyanta@gmail.comb
Abstract
There is an indirect relation between wage structure and industrial competitiveness. The
wage structure reflects wage dispersion among worker in the firm or industry, and
determines worker productivity. Furthermore, worker productivity determines industrial
competitiveness. The impact of wage structure, measured by wage dispersion, on worker
productivity is ambiguous. Based on tournament model, an increase of wage dispersion
leads to an increase of worker productivity. Conversely, in the perspective of fair wage
effort hypothesis, higher wage dispersion is followed by lower worker productivity. This
study analysis the impact of wage structure on Indonesia industrial competitiveness
through worker productivity as intervening variable. The industrial workers includes both
blue collar worker and white collar worker. This study uses secondary data published by
Statistics Indonesia. In the first equation, we regress labor productivity on wage dispersion
and institutional variabel. Hereafter, in the second equation, we regress industrial
competitiveness on fitted value of labor productivity and infrastructure. The results show
that for blue collar workers, there is a negative impact of wage dispersion on labor
productivity so its impact on industrial competitiveness is also negative. However, for
white collar workers, wage dispersion has a positive impact on labor productivity and
industrial competitiveness.
Keywords : wage, structure, dispersion, industrial, competitiveness
1. Introduction
The influence of pay systems on workers’ productivity is discussed recently in labor economics.
Workers’ effort not only determined by wage but also by relative wage (Lallemand et al., 2004).
Relative wages are considered play a key role in determining workers’ effort. Workers
compare their wages with those of their co-worker. Relative wage is reflected on wage structure
that describe the level of job and pay ranges. Wage dispersion depict a schedule of wage
differentials among jobs in a firm or an industry.
There is an impact of wage dispersion on worker effort. If wage dispersion is perceived as fair so
workers would respond it by higher effort, and vice versa. Workers realize that wages will vary
according to the job. But the problem is whether a wage structure considered as fair. In line
with wage dispersion, there is no clear theoretical consensus on the characteristics of this
relationship. There are two theoretical framework, tournament model and fair wage effort
hypothesis, discuss the impact of wage dispersion on workers’effort. The tournament model
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stresses that a more differentiated wage structure stimulates workers’ effort. Workers competed
each other in order to get largest award so the higher the pay spread, the higher the workers’
effort. Conversely, the fair wage effort hypothesis argue that wage compression reinforces
worker by improving labor relations and stimulating cohesiveness among workers (Mahy et
al., 2009).
A growing research is devoted recently to analyzing the relationship between wage dispersion
and industrial competitiveness. Industrial competitiveness is depend on labor productivity, and
then the latter is determined by wage dispersion. There is no clear theoretical consensus on the
characteristics of the relationship between wage structure and labor productivity (Martin, 2008),
therefore the impact of wage structure on industrial competitiveness still remains unclear as both
negative impact or positive impact are suggested (Mahy et al., 2009). Studies analyzing this
relationship might be influenced by specific industrial environment. Therefore the impact of
wage structure on industrial competitiveness will vary according to industry.
Meanwhile, the impact of wage structure on industrial competitiveness will also vary according
to type of workers. Industrial workers consist of blue collar and white collar workers. A
blue-collar worker is a working class person who performs manual labor. They are involve both
skilled and unskilled labor such as worker under supervisor, supervisor, and experts. In contrast,
the white-collar workers performs work in an office environment and may involve sitting at a
computer or desk. White collar involve administration staff, sales staff, accountant and manajer.
Blue collar and white collar face a different environment, therefore they can respond differently
to wage structure.
If the wage structure, reflected by wage dispersion, is perceived as fair then workers respond it
by higher effort. Higher effort will be followed by higher productivity. Productivity is a key
factor that determined industrial competitiveness. With higher productivity, a firm or an industry
can produce some goods by lower cost, therefore increase their competitiveness. They have an
ability to face competition and to be successful when facing competition. They can sell products
that meet demand requirements (price, quality, quantity) and, at the same time, ensure profits
over time that enable the firm to thrive (Latruffe, 2010). Then, the problem is which the wage
structure do workers want; the tournament model or the fair wage hypothesis model. This paper
want to analyze the relationship between wage structure and industrial competitiveness, and to
examine whether this relationship varies across different working environments
The remainder of this paper is organized as follows. Section 2 reviews the literature regarding
the relationship between wage dispersion and industrial competitiveness. We describe our
methodology in Section 3. Section 4 reviews the empirical results and analyze the impact of
wage dispersion on labor productivity and industrial competitiveness. Section 6 concludes.
2. Literature Review
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Based on neoclassical economics, it is developed a wage structure called tournament model. In
order to maintain company efficiency, employers pay the wage as high as value marginal product.
This framework assumes that workers has no emotion, and then like the other input, he receive
wage as high as his value marginal product. Wage will vary according to workers’ productivity.
Highly productive firms pay largest wages to their most productive workers, which in turn leads
to more wage dispersion. This model points out that a more differentiated wage structure
stimulates workers’ effort through the incentive resulting from awarding the largest prize to the
most productive workers (Heyman, 2005).
The introduction of performance-related pay systems typically leads to an increase in wages
dispersion. This result is due to the fact that there is a greater underlying variation in the
individual endowments that determine worker performance (Belfield and Marsden, 2003). High
wage dispersion lead to a high competition among worker which in turn has a negative impact
on company competitiveness. Some workers fell they are treated unfair and tend to do
uncooperative behavior. High wage differential motivate to make a worker look good or to make
a colleague look bad neither of which is support company performance. Unwillingness of
workers’ to cooperate hamper a company effort to increase its competitiveness.
To minimize uncooperative behavior, employer must reduce pay differential. This is the
theoretical argument of fair wage effort hypothesis stated by Edward Lazear. This framework
point out that workers’ effort not only depend on wage but also on relative wage that depict
wage distribution in a company or an industry. Workers will reduce their effort if their wage is
perceived unfair. Wage is considered as fair if the pay spread is lower than the performance
differential. Lazear points out that a compressed wage structure should be preferred when the
initial incentive effect of a performance-related pay system is offset by a lower degree of work
cohesion due to the sabotage behavior of some workers (Mahy et al, 2009). Pay compression
within a company is essential when the job must be done by a team work. In this case, lower
wage dispersion stimulate cohesiveness among worker which in turn increase the company
performance.
Another important issue is whether the relationship between wage dispersion and labor
productivity depends on the industrial relations regime. Unions tend to reduce the use of
pay-for-performance mechanisms (and wage dispersion) because of the increased risk of
discrimination and the greater solidarity between workers (Lemieux et al, 2009). In line with the
stipulation of The Republic of Indonesia Act Number 13 Year 2003 Concerning Manpower,
there is an effort to secure the implementation of equal opportunity and equal treatment. The
wage structure compress wage differential so there is a lower wage dispersion. Workers consider
that wage structure is fair and respond it by increasing their effort.
There is no clear theoretical consensus on the relationship between wage structure and
productivity so the impact of wage structure on industrial competitiveness still remains unclear
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as both a negative impact or a positive impact. Wage leveling within workplaces and industry
may enhance productivity (Hibb and Locking, 2000). There is a positive relationship between
wage inequality and firm performance. Moreover, the intensity of this relationship is stronger for
blue-collar workers and within firms with a high degree of monitoring. These findings confirm
the ‘tournament’ models than with the ‘fairness, morale and cohesiveness’ models (Lallemand et
al, 2004). But some researchers find different results that support fair wage effort hypothesis
rather than tournament model. This result states that large dispersion of wage within firms is
generally connected with low firm performance (Grund and Nielson, 2008). When the wage
structure study focuses on low or high skill worker only, there is a different results. For
high-skilled workers, wage paid according to performance than their low-skilled counterparts
because the former might increase their productivity more easily than the latter.
3. Methodology
The secondary data published by Indonesian Statistics is used in this research. Data involves
wage dispersion, labor productivity, industrial competitiveness and infrastructure in Indonesia
during 2001-2013. The data is supplemented by institutional factor i.e. The Republic of
Indonesia Act Number 13 Year 2003 Concerning Manpower. The industrial data cover four
manufacturing industries including food, textile, ceramic and basic metal, and, paper and
chemical. Wage structure involves wage dispersion for blue collar and white collar worker. For
blue collar worker, wage structure is measured by the difference between wage of experts and
worker below supervisor, meanwhile for white collar worker, wage structure is measured by the
difference between wage of manager and administration staff. Furthermore, labor productivity is
expressed as the ratio of output to the number of employee. The ratio of value added to the
number of employee is used as proxy for industrial competitiveness. As a proxy for
infrastructure, we used the length of road per 1,000 km2
land area. Then, the Act Number 13
Year 2003 Concerning Manpower is used for dummy variable that takes on the values 1 and 0; 1
refers the period of time after 2003 and 0 refers otherwise.
The data covers four industry during 2001-2013, and known as panel data. The panel data is
a data sets that combine time series and cross sections. This data sets provide rich sources of
information about the economy. Panel data give more informative data, more variability, less
collinearity among the variables, more degrees of freedom and more efficiency (Baltagi, 2003).
It is crucial in panel framework to decide which of the two estimators, fixed effects or random
effects models will be used. The Hausman specification test is usually used to decide whether
to use fixed effects or random effects model. A rejection of the null hypothesis leads to the
adoption of fixed effects model, and vice versa.
First, this paper examines the response of wage structure to a change of labor productivity.
Therefore, in the first equation, we regress wage structure on labor productivity and the Act
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Number 13 Year 2003 Concerning Manpower as dummy variabel. The first equation can be
written in dynamic panel data as follows:
(1)
Where Y represent labour productivity, X1 and ACT respectively represent wage structure and the
Act Number 13 Year 2003 Concerning Manpower.
Second, this study want to examine the effects of wage structure on industrial competiveness
through labor productivity as intervening variable. Thus the effect of wage structure on industrial
competitiveness will depend on its effect on the labor productivity. In the second equation, we
regress industrial performance on wage structure, fitted value of labor productivity and
infrastructure. The second equation can be written in dynamic panel data as follows:
(2)
Where Q represent industrial competitiveness, where as X3 and Y respectively represent
infrastructure and labor productivity.
4. Empirical Results and Discussion
1. Impact of Wage Structure on Labour Productivity
In line with co-integration principle, we use the Pedroni co-integration test to examine whether
there is a co-integration relationship among variables in the model. The results show that the null
hypothesis of no co-integration can be rejected (Table 1). Therefore, there is a long run
relationship between wage structure and labor productivity both for blue collar and white collar.
Likewise to the first results, the second result also exhibits a long run relationship among wage
structure, labor productivity, infrastructure and industrial competitiveness. This cointegration
implies that the variables have a stable long-run (equilibrium) relation and any deviation from
this relation reflected just short-run (temporary) disequilibrium.
In order to obtain parsimonious model, we use lag length selection criteria based on Akaike’s
Information Criteria (Liew, 2004). Both for blue collar and white collar, the optimum lag length is 1
year. Furthermore, in this case we cannot apply Hausman specification test because random
effects estimation requires the number of cross section exceed the number of coefficient.
Therefore, we assume that fixed effects model is an appropriate model. Then, based on
estimation of the fixed effects model and reduction to insignificant parameters, we obtain a
parsimony model (Table 2).
it
k
j
itijjit
k
j
ij
k
j
jitijitit eACTXYY
1
4,1
0
3
1
21
it
k
j
jitijjit
k
j
ijjit
k
j
k
j
jitijiit YXXQQ
1
5,3
0
4,1
1
3
1
21
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Table 1: The Results of Pedroni Cointegration Test (Labour Productivity Model)
*significant at 5%
Table 2: Wage Structure and Labor Productivity : OLS Results
For blue collar, all of regression coefficients are statistically significant. This results show that if
the previous labor productivity increase by 1 million rupiahs, current labor productivity up by
0.901 million rupiahs (cetiris paribus). This means that these industry always improve their
labor productivity. Meanwhile, there is no impact of stipulation the Act No. 13/2003 on labor
productivity. This is indicate that stipulation this Act does not implement optimally. This is,
probably, due to the completion of government regulations as a further elaboration of the Act
No. 13/2003.
Furthermore, there is a negative impact of wage structure on labor productivity. An increase in
wage dispersion, leads to a decline in labor productivity. An increase in wage dispersion by 1
thousand rupiahs, on average, labour productivity down by 0.001 million rupiahs. For blue
collar workers, the job usually must be done by a team work so pay compression within a
Statistic Panel Blue Collar White Collar
Statistic Prob. Statistic Prob.
Panel v-Statistic 6.026* 0.000 1.958* 0.025
Panel rho-Statistic
0.359
0.641 1.078 0.859
Panel PP-Statistic -2.474* 0.007 -2.452* 0.007
Panel ADF-Statistic -2.233* 0.013 -1.840* 0.033
Group rho-Statistic
0.887
0.812 1.071 0.858
Group PP-Statistic -12.565* 0.000 -13.078* 0.000
Group ADF-Statistic -2.376* 0.009 -4.629* 0.000
Statistic Panel Blue Collar White Collar
Coefficient Prob. Coefficient Prob.
Intercept 72.285* 0.000 -6.348 0.891
Labor Productivity t-1 0.901* 0.000
0.898*
0.000
Wage Structure t-1 -0.001* 0.007 -0.076 0.104
Act No. 13/2003 22.847* 0.000 13.982 0.670
Wage Structure t
0.102*
0.028
Adjusted R2
0.958 0.964
*significant at 5%
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company is essential to increase cohesiveness among workers. Higher wage dispersion deters
industrial relations and hamper cohesiveness among workers which in turn decline labor
productivity. Higher wage differential leave a group of workers dissatisfied with their relative
wage, and then can results in unwanted behavior. Wage structure that suitable for blue collar
workers must be designed based on fairness consideration. In line with the finding of Grund and
Nielson (2004), this result support fair wage effort hypothesis rather than tournament model.
Large dispersion of wage within firms is associated with low labor productivity.
On the other hand, for white collar model there is only two explanatory variables that
statistically significant. The previous wage structure and Act No. 13/2003 has no impact on labor
productivity. The previous wage structure that not significant indicate that white collar workers
directly respond to a change of wage structure. Furthermore, the stipulation of the Act No.
13/2003 has no impact on labor productivity, and this is probably due to the completion of
government regulations as a further elaboration of the Act No. 13/2003. The coefficient of
previous labor productivity is positive and significant. This means that if the previous labor
productivity increase by 1 million rupiahs, current labor productivity up by 0.898 million rupiahs
(cetiris paribus). This condition implies that these industry always improve their labor
productivity.
Unlike blue collar workers, for white collar workers the current wage dispersion has a positive
impact on labor productivity. Higher wage dispersion lead to an increase of labor productivity.
An increase in wage dispersion by 1 thousand rupiahs, on average, labour productivity up by
0.102 million rupiahs (cetiris paribus).This result suggest that for white collar workers, a
differentiated wage structure is good for labor productivity. The wage structure that suitable for
white collar worker is performance-related pay systems. Employers stimulates workers’ effort
through the incentive resulting from awarding the largest prize to the most productive worker. It
encourages workers to perform better than their peers in order to increase their earnings. This
empirical result supports the finding of Hibb and Locking (2000) that wage leveling within
workplaces and industry may enhance productivity.
2. Impact of Labour Productivity on Industrial Competitiveness
By applying Pedroni panel co-integration test, we check whether the variables have a long
run relationship or not. The result give strong evidence that the null hypothesis of no
co-integration can be rejected so these variables have a long run equilibrium (Table 3). A
deviation from this relation, if any, reflected just short-run (temporary) disequilibrium.
Table 3: The Results of Pedroni Cointegration Test (Industrial Competitiveness Model)
Statistic Panel Blue Collar White Collar
Statistic Prob. Statistic Prob.
Panel v-Statistic 1.822* 0.034 1.216 0.112
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Furthermore, lag selection is crucial issue in the dynamic modeling. Model with too long lag
can lead to diminish degree of freedom, where as model with too short lag can lead to a miss
specified model. In order to obtain optimum lag, we apply Akaike’s Information Criteria (Liew,
2004). Based on this criteria, the optimum lag length is 1 year. In this case, however, Hausman
test cannot be applied because random effects estimation requires number of cross section
exceed number of coefficient. Therefore, we assume that fixed effects model is an appropriate
model. Based on estimation of the fixed effects model, we apply redundant variables test to
obtain a parsimony model as follow (Table 4).
Table 4: Wage Structure and Industrial Competitiveness with Labor Productivity as
Intervening Variable : OLS Results
Table 4 show that both for blue collar and white collar model all variables included in the model
are statistically significant, except wage structure. This is indicate that there is an indirect
relationship between wage structure and industrial competitiveness. The wage structure has
direct impact on worker productivity, then the later act as intervening variable. In the blue collar
worker, the coefficient of previous industrial competitiveness is about 0.744. It means that an
increase in the previous industrial competitiveness of 1 million rupiahs, on average, leads to
about 0.744 million rupiahs increase in current industrial competitiveness. This condition
exhibits that there is a continuous improvement in the industrial sector. Further, infrastructure
has a positive impact on industrial competitiveness. An increase in the length of road by 1
kilometer (per 1,000 km2
land area), on average, industrial competitiveness goes up by 5.443
Panel rho-Statistic -0.077 0.469 -0.068 0.473
Panel PP-Statistic -1.345 0.089 -3.143* 0.001
Panel ADF-Statistic -1.637* 0.050 -2.736* 0.003
Group rho-Statistic 0.151 0.559 1.088 0.862
Group PP-Statistic -1.912* 0.028 -3.832* 0.000
Group ADF-Statistic -2.015* 0.022 -3.059* 0.001
*significant at 5%
Statistic Panel Blue Collar White Collar
Coefficient Prob. Coefficient Prob.
Intercept -125.159* 0.014 -98.96* 0.002
Industrial Competitiveness t-1 0.744* 0.000 0.776* 0.000
Labor Productivity t-1 (Fitted) 0.142* 0.050 0.084* 0.050
Wage Structure t 0.005 0.486
Wage Structure t-1 -0.013 0.380
Infrastructure t 5.443* 0.038 3.951* 0.004
Adjusted R2
0.925
0.971
*significant at 5%
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million rupiahs. Infrastructure accelerates industrial development so better infrastructure leads to
a higher industrial competitiveness.
Furthermore, in the blue collar worker model, labor productivity has a positive impact on
industrial competitiveness. An increase in labor productivity by 1 million rupiah, leads to an
increase in industrial competitiveness by 0.142 million rupiahs. Labour productivity is the
cornerstone of industrial competitiveness and the source of competitive advantage for company.
The labor productivity variable in second equation is a fitted value of labor productivity that
resulted in the first equation. For blue collar worker the impact of wage structure on labor
productivity is negative so its impact on industrial competitiveness is also negative. This means
that an increase of wage dispersion leads to a decline of industrial competitiveness through its
negative impact on labor productivity. This result support fair wage effort hypothesis and
confirm the study of Grund and Nielson (2004) that the large dispersion of wage within firms is
connected with low firm performance.
Meanwhile, the white collar model shows that wage structure has no direct impact on industrial
competitiveness. This means that there is an indirect impact of wage dispersion on industrial
competitiveness through labor productivity as intervening variable. Therefore, an increase in the
previous industrial competitiveness of 1 million rupiahs, on average, leads to about 0.776 million
rupiahs increase in current industrial competitiveness. The industry always makes a continuous
improvement. Furthermore, infrastructure has a positive impact on industrial competitiveness.
An increase in the length of road by 1 kilometer (per 1,000 km2
land area) leads to an increase of
industrial competitiveness by 3.951 million rupiahs.
Labor productivity has a positive impact on industrial competitiveness. An increase in labor
productivity by 1 million rupiah, leads to an increase in industrial competitiveness by 0.084
million rupiahs. Labour productivity is a source of competitive advantage. For white collar
worker, the impact of wage structure on labor productivity is positive as stated in the first
equation, so its impact on industrial competitiveness is also positive. An increase of wage
dispersion leads to an increase of industrial competitiveness through its positive impact on labor
productivity. Large dispersion of wage within firms is connected with high firm performance.
This finding support turnamen model and confirm the studies of Hibb and Locking (2000) that
wage leveling within workplaces and industry may enhance productivity.
5. Conclusion
There is an indirect relationship between wage structure, reflected by wage dispersion, and
industrial competitiveness. The impact of wage dispersion on industrial competitiveness depend
its impact on labor productivity. For blue collar worker, there is a negative impact of wage
dispersion on labor productivity. Higher wage dispersion leads to lower labor productivity, so its
impact on industrial competitiveness is also negative. Conversely, for white collar worker the
impact of wage dispersion on labor productivity is positive so its indirect impact on industrial
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competitiveness is also positive. Higher wage dispersion indirectly leads to higher industrial
competitiveness. Based on these results, for blue collar worker, it is recommended to apply
fairness consideration in wage determination. However for white collar worker, employer must
apply a performance-related pay system.
6. References
Baltagi, Badi., H., 2003. Econometric Analysis of Panel Data, John Wiley and Sons.
Belfield, R and Marsden, D, 2003, Performance pay, monitoring environments, and
establishment performance. International Journal of Manpower, 24, pp 452-471.
Grund, C and Westergaard-Nielsen, N. 2008. The dispersion of employees’ wage increasesand
firm performance. Industrial and Labor Relations Review, 61, pp 485-501.
Heyman, Fredrik, 2005. “Pay Inequality and Firm Performance : Evidence From Matched
Employer-Employee Data”, Applied Economics, 37, pp 1313-1327.
Hibbs, Douglas, Jr. dan Hakan Locking, 2000. “Wage Dispersion and Productive Efficiency:
Evidence for Sweden”, Journal of Labor Economics, 12, pp 775–782.
Lallemand, Thierry, Robert Plasman and François Rycx, 2004. “Intra-Firm Wage Dispersion and
Firm Performance: Evidence from Linked Employer-Employee Data”, Kyklos, 57, pp
541-566.
Latruffe, L. 2010. “Competitiveness, Productivity and Efficiency in the Agricultural and
Agri-Food Sectors”, OECD Food, Agriculture and Fisheries Papers, No. 30, OECD
Publishing.
Liew, Venus Khim−Sen, 2004. "Which Lag Length Selection Criteria Should We Employ?."
Economics Bulletin, 33, pp 1−9.
Lemieux, T, MacLeod, B and Parent, D., 2009. Performance pay and wage inequality. The
Quarterly Journal of Economics, 124, pp 1-49.
Mahy, B, F. Rycx and M. Volral, 2009. “Wage Dispersion and Firm Productivity in Different
Working Environments”, CEB Working Paper No. 09/012.
Martins, P., 2008, Dispersion in wage premiums and firm performance. Economics Letters, 101,
pp 63-65.
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Income Distribution and Environment: Empirical Evidence from Malaysia,
Indonesia and Singapore
Abdul Rahim Ridzuana*, Nor Asmat Ismailb, Abdul Fatah Che Hamatc,
Abu Hassan Shaari Mohd Nord, Elsadig Musa Ahmede
a
Faculty Business Management, Universiti Teknologi MARA, Melaka City Campus, Malaysia
aimaz84@yahoo.com
b,c
School of Social Science, Universiti Sains Malaysia, Penang, Malaysia
norasmat@usm.my, abdfatah@usm.my
d
School of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia,
Bangi, Malaysia
ahassan@ukm.edu.my
e
Economics Unit, Faculty Business, Universiti Multimedia, Melaka, Malaysia
elsadig1965@gmail.com
Abstract
This paper examines the income distribution-environment nexus in the context of
country-specific time series data. The short run and long run effects of income inequality,
economic growth and energy consumption on CO2 emissions in Malaysia, Indonesia and
Singapore were examined by using the autoregressive distributed lag (ARDL) approach. Annual
data for the period of 1971 – 2011 is used. The empirical findings based on ARDL and the
dynamic ordinary least square (DOLS) indicate that more equitable income distribution results in
better environmental quality for Malaysia and Singapore. On the other hand, better income
distribution worsens the environmental quality in the case of Indonesia. It is also found that
domestic investment, trade openness and national income have beneficial effects on
environmental quality in Singapore whereas energy consumption has a detrimental effect on
pollution. As for Malaysia and Indonesia, most of the variables used in the model worsen the air
quality in these countries.
Keywords: Income distribution, ASEAN, ARDL
1. Introduction
The studies on environmental consequences of economic development also known by
environmental Kuznet curve (EKC) was one of the interesting topics that have been discussed by
many past researchers. Many countries are particularly interested in this area of studies due to
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increasing concerns about the environmental degradation issues which cause global warming
through their greenhouse effects. Earlier studies done by Grossman and Kruger (1991), Syafiq
(1994), Agras and Chapman (1999) have proposed that there is an inverse U shaped relationship
between economic growth (GDP) and environmental quality (e.g CO2) in which environmental
quality worsens at low levels of income, and then improves as income increases. However, many
of these studies may suffer from the omitted variables’ bias because factors other than economic
growth could also be important determinants of environmental quality (Iwata et al, 2010; Kim
and Baek, 2011). In recent EKC literature, several new determinants are proposed such as
energy consumption, foreign direct investment and trade openness in addition to economic
growth or income (Jalil and Mahmud, 2009; Iwata et. al, 2010; Kim and Baek, 2011). However,
this list of new determinants does not include income distribution (inequality) as one of the
potential determinants of environmental quality. According to Torras and Boyce (1998), greater
income equality will lead to lower levels of environmental degradation. Boyce (1994) argued
that better income distribution will cause society to demand for better environmental quality.
Meanwhile, Heerink et al (2001) shows that redistributing income has a detrimental effect on the
environment. Thus, according to political economy argument, income inequality should be
included as one of the determinants when testing the EKC hypothesis. Most of the existing
studies applied panel data of a group of countries for their empirical analyses, however the
studies that adopted country-specific time series data to examine the effect of economic growth
on environment by including income distribution into the model is very limited. In this paper, we
attempt to extend the existing literature by re-examining income inequality-environment nexus
in the context of country specific time series data for Malaysia, Indonesia and Singapore. Table
1 below shows the trend for income distribution and level of pollution, CO2 for the respective
countries from 1980 to 2010.
Table 1 : GINI index and CO2 emission (metric ton percapita)
Malaysia Indonesia Singapore
Year
GINI C02 GINI CO2 GINI CO2
coefficient coefficient coefficient
1980 38.57 2.02 38.28 0.65 38.11 13.02
1985 42.04 2.29 48.85 0.74 38.65 12.21
1990 40.33 3.10 35.47 0.83 36.39 15.40
1995 38.05 5.84 47.17 1.15 35.38 13.36
2000 37.76 5.40 45.24 1.26 38.10 12.16
2005 37.9 6.86 34.3 1.52 47 7.11
2010 43 7.66 38 1.80 46 2.66
Source: University of Texas income Inequality Project (UTIP)
The country-specific analysis will enable us to capture and account for complexities of the
economic environment and its determinants in the respective countries, of which panel analysis
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is unable to capture. Empirical focus is on the assessment of the short run and long run effects
tested using Autoregressive distributed lag (ARDL) approach to co-integration developed by
Pesaran et al, (2001). Besides, the dynamic ordinary least square (DOLS) introduced by
Saikkonen (1988) and Stock and Watson (1993) was tested to serve as a robustness check on
their long run relationship. The remainder of this paper is organized as follows. Section 2 briefly
reviews the relevant literature, while Section 3 presents the model and describes the empirical
framework used in this analysis. Section 4 presents the sources of data. In section 5, the main
empirical findings are reported and elaborated. Finally, section 6 concludes the paper.
2. Literature Review
Literature examining pollution haven hypothesis for Malaysia, Indonesia and Singapore based
on individual time series analysis are scarce. There are only few studies which tested this
hypothesis on these countries as a group of economies known as ASEAN (Association of South
East Asian Nations) countries using panel data estimation. Lee and Smyth (2010) tests EKC
hypothesis on ASEAN5 (Malaysia, Indonesia, Thailand, Philippine and Singapore) using panel
co-integration technique based on pooled sample. This study finds that the hypothesis is only
validated for ASEAN5 as a group but the evidence based on individual countries are varied.
With the exception of Philippines, no evidence of EKC is found for Malaysia, Singapore and
Thailand. In the case of Indonesia, income seems to increase monotonically with CO2 emissions.
Next, Narayan and Narayan (2010) argued that EKC hypothesis is not supported for developing
countries such as Malaysia, Indonesia, Philippines and Thailand. However, based on long run
relationship, the error correction term (ECT) for Malaysia, Indonesia and Thailand are found to
be negative and significant, thus confirming the existence of long run relationships between
income and CO2. As a whole, while the income-CO2 emissions nexus is supported in general,
the EKC is not supported for ASEAN especially Malaysia, Indonesia and Thailand. Hossain
(2011) examined the relationship between CO2, energy consumption, economic growth, trade
openness and urbanization for a panel of nine newly industrialized countries that included
Malaysia, Thailand and Philippines. The outcome showed that income and energy consumption
have a significant long run impact on CO2 emissions in Thailand and Philippines. Based on
panel granger causality test, there is no long run causality between income, energy consumption
and CO2 emissions. However, in the short run, the causality runs from income to CO2
emissions. Based on country specific analysis on Malaysia, Ang (2008) finds that CO2 and
energy consumption are positively related to GDP in the long run. Besides, the granger causality
test shows that there is evidence of unidirectional causality running from GDP to energy
consumption in the long run.
3. The model
The empirical model used in this research is basically a modified version of theoretical
framework developed by Torras and Boyce (1998), Heerink et.al (2001) and Jungho Baek and
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Guankerwon Gweisah (2013), which is used to represent the long run relationship between CO2
emissions and its major determinants in a linear logarithmic form (LN) as follows:
LNCO2t = α + β1LNGNIt-1 + β2LNIDt-1 + β3LNENt-1 + ut -----------------(1)
Income level (output) represented by GNI per capita are proxied in accordance with the United
Nation’s and the World Bank’s new measurement of national income known as gross national
product (GNP) per capita. Many past studies were unanimous in identifying income per capita as a
major predictor of pollution levels (Taludkar and Meisner, 2001 and Cole, 2004). None of the
studies on the determinants of pollution levels omitted income as an explanatory variable because
most of the expected environmental effects included the scale effect or simply the expansion of
economic output (Organisation for Economic Co-operation and development, OECD 2002).We
rearranged and extended the model by including another two determinants as follows:
LNCO2t = α + β1LNGDIt-1 + β2LNTOt-1 + β3LNIDt-1 + β4LNGNIt-1 + β5LNENt-1 + ut ------(2)
CO2 emissions is measured in metric tons per capita; GDI is gross domestic investment (measured
in gross fixed capital formation); TO is trade openness (measured in trade share of GDP); ID is
income distribution (gini coefficient); GNI is gross national income per capita (2005=100) and EN
is energy consumption (measured in kg oil equivalent per capita).With respect to the signs of the
coefficient in equation (2), β1, β2, β3, β4 and β5 are expected to be positive. Finally, equation 2 is
transformed into Bound testing approach as follows:
∆LNCO2t = α + ∑ 𝜎𝑖
𝑣
𝑖=1 ∆LNCO2t-i + ∑ 𝜎𝑠
𝑖=1 i∆LNGNIt-i + ∑ 𝜎𝑟
𝑖=1 i∆LNTOt-i + ∑ 𝜎i
𝑞
𝑖=1 ∆LNIDt-i
+ ∑ 𝜎i
𝑡
𝑖=1 ∆LNGNIt-i + ∑ 𝜎i
𝑝
𝑖=1 ∆LNENt-i + β0LNCO2t-1 + β1LNGDIt-1 + β2LNTOt-1 +
β3LNIDt-1 + β4LNGNIt-1 + β5LNENt-1 + ut -----------------(3)
where ∆ is the first-difference operator, ut is a white-noise disturbance term. This final model can
also be viewed as an ARDL of order, (v s r q t p). The model indicates that in order for
environmental quality (CO2) to be influenced and explained by its past values, it it has to involve
other disturbances or shocks. From the estimation of ECMs, the long-run elasticities are the
coefficient of the one lagged explanatory variable (multiplied by a negative sign) divided by the
coefficient of the one lagged dependent variable (Bardsen, 1989). The long-run elasticities for
GDI, TO, ID, GNI and EN are (β2 / β1), (β3 / β1) , (β4 / β1), (β5 / β1) and (β6 / β1) respectively.
The short-run effects are captured by the coefficients of the first-differenced variables. The null
hypothesis of no co-integration in the long run relationship, defined by: H0 : β1 = β2 = β3 = β4 =
β5 = β6 = 0 is tested against the alternative of H1 : β1 ≠ β2 ≠ β3 ≠ β4 ≠ β5 ≠ β6 ≠ 0, by using the
familiar F-test. However, the asymptotic distribution of this F-statistics is non-standard
irrespective of whether the variables are I(0) or I(1). For a small sample size study ranging from 30
to 80 obervations, Narayan (2004) has tabulated two sets of appropriate critical values. One set
assumes all variables are I(1) and another assumes that they are all I(0).
Meanwhile, the DOLS methods extend equation (2) to include leads and lags of first differenced
non-stationary variables as
LNCO2t=α +β1LNGDIt + β2LNTOt + β3LNIDt + β4LNGNIt + β5LNENt +∑ ɋ𝑖𝑋−𝑚
𝑖=+𝑚 t-1+ ut--(4)
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where X is a vector of included non-stationary variables. As mentioned earlier, the purpose of
running DOLS is to serve as robustness checking because the DOLS is able to provide control for
regressor endogeneity since ARDL tends to have regressor endogeneity problems.
4. Data
The annual data used in this studies covers the period from 1971 until 2011.The data span has
been chosen based on availability of the data for all series. The sources of data were collected
from World Development Indicator (WDI) 2015 released by World Bank. The GINI coefficient
is used as a proxy for income inequality and is obtained from University of Texas Income
Inequality Project (UTIP). The estimation was run by using the E-views version 9.
5. Empirical Results
The analysis began by performing unit root tests for all variables using data from Indonesia,
Malaysia and Singapore. The two types of unit root test used here are Augmented Dickey Fuller
(ADF) and Philipp Perron (PP). Table 2 shows a mix of stationarities at I(0) and I(1) for the
variables tested. ID for Indonesia, Malaysia and Singapore were found to be stationary even at
level. Besides, Singapore’s GDI was also found to be stationary at level. Meanwhile, testing at
first difference using PP unit root test finds that all variables are stationary between 1 to 5%
significance levels. The mix of stationarities at both I(0) and I(1) confirms the suitability of the
model for further analysis using ARDL estimation technique.
Table 2: Results of ADF and PP unit root tests
Country Variable ADF test statistic PP test statistic
Intercept Trend and
intercept
Intercept Trend and
intercept
Indonesia Level LCO2 -1.557 (0) -2.975 (0) -2.086 (11) -2.777 (6)
LGDI -2.219 (1) -2.434 (1) -1.870 (1) -1.992 (1)
LTO -2.385 (0) -2.374 (0) -2.518 (4) -2.531 (4)
LID -2.179 (2) -3.147 (3) -6.815 (5)*** -10.853 (5)***
LGNI -0.868 (0) -2.505 (1) -0.856 (2) -2.281 (3)
LEN -0.910 (0) -1.392 (0) -0.938 (3) -1.417 (1)
First difference LCO2 -5.962 (0)*** -5.990 (0)*** -6.296 (9)*** -7.175 (11)***
LGDI -4.325 (0)*** -4.271 (0)*** -4.206 (6)*** -4.148 (6)**
LTO -8.078 (0)*** -7.988 (0)*** -8.256 (2)*** -8.184 (2)***
LID -17.052 (1)*** -16.945 (1)*** -19.589 (6)*** -19.613 (6)***
LGNI -4.950 (0)*** -4.905 (0)*** -4.920 (2)*** -4.917 (1)***
LEN -6.184 (0)*** -6.186 (0)*** -6.181 (2)*** -6.192 (3)***
Malaysia Level LCO2 -0.818 (0) -2.175 (0) -0.818 (0) -2.204 (2)
LGDI -2.261 (1) -2.343 (1) -1.924 (1) -1.821 (0)
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LTO -0.814 (0) -1.37 (0) -0.804 (3) -1.370 (0)
LID -6.604 (0)*** -6.688 (0)*** -6.594 (2)*** -6.683 (2)***
LGNI -1.329 (0) -2.680 (1) -1.244 (2) -2.378 (2)
LEN -1.032 (0) -2.122 (0) -1.545 (11) -2.191 (1)
First difference LCO2 -7.535 (0)*** -7.455 (0)*** -7.522 (1)*** -7.445 (1)***
LGDI -4.494 (0)*** -4.494 (0)*** -4.429 (3)*** -4.361 (4)***
LTO -6.235 (0)*** -6.296 (0)*** -6.251 (5)*** -6.334 (6)***
LID -7.102 (2)*** -7.236 (2)*** -31.726 (38)*** -42.450 (23)***
LGNI -4.778 (0)*** -4.768 (0)*** -4.784 (1)*** -4.780 (1)***
LEN -6.630 (0)*** -6.718 (0)*** -6.973 (7)*** -9.632 (14)***
Singapore Level LCO2 2.29(2) 1.43(2) 1.19(3) -0.30(1)
LGDI -1.68(1) -2.75(1) -1.31(2) -2.11(1)
LTO 03.11(0)** -3.75(2)** -2.94(3)** -2.76(5)
LID -0.71(0) -1.70(0) -1.01(3) -1.70(1)
LGNI -3.90(0)*** -3.40(0)** -5.60(15)*** -9.87(39)***
LEN -1.51(0) -2.19(0) -1.52(2) -2.23(1)
First difference LCO2 -0.63(4) -8.59(1)*** -6.16(3)*** -7.95(3)***
LGDI -4.11(0)*** -4.07(0)** -4.13(3)*** -4.09(3)**
LTO -4.81(0)*** -5.28(0)*** -4.71(5)*** -5.20(6)***
LID -5.56(0)*** -6.37(0)*** -5.58(2)*** -6.37(0)***
LGNI -3.53(1)** -4.05(1)** -5.13(1)*** -5.74(0)***
LEN -6.55(0)*** -6.50(0)*** -6.58(2)*** -6.54(3)***
Note: 1. ***, ** and * are 1%, 5% and 10% levels of significance, respectively. 2. The optimal lag length is selected
automatically using the Schwarz information criteria for ADF test and the bandwidth is selected using the Newey–West method
for the PP test. 3. Numbers in parentheses are standard errors
Next, to check the existence of long run relationships between the variables for all three
countries, the analysis proceeded with the F-tests and the results are as shown in Table 3. The
maximum lag of 4 was imposed in each model using Schwarz Bayesian criterion (SIC). The F
statistics for Indonesia, Malaysia and Singapore (respectively, 13.08, 7.88 and 5.19) are higher
than the upper I(1) critical value (significant at 1% level), thus confirming the existence of long
run relationships.
Table 3: Results of ARDL co-integration tests
Model maximum
lag
SIC-lag order
[v,s,r,q,t,p]
F Statistic at
SIC
Indonesia 4 (2,0,4,1,1,0) 13.08***
Malaysia 4 (4,4,3,4,4,3) 7.88***
Singapore 4 (4,4,4,0,4,4) 5.19***
Critical Values for F-statistics#
Lower I(0) Upper I(1)
1% 3.41 4.68
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k = 5 5% 2.62 3.79
10% 2.26 3.35
Note: # The critical values are obtained from Narayan (??), k is number of variables, critical values for the bounds test: case III:
unrestricted intercept and no trend. *, **, and *** represent 10%, 5% and 1% levels of significance, respectively.
Results from Table 4 confirm that all the countries’ models passed all diagnostic checks which
render the long term estimates of these models to be reliable. In summary, the models have no
evidence of serial correlation and heteroscedasticity effect in disturbances. Besides, those
models also passed the Jarque-Bera normality test which suggest that the errors are normally
distributed and all models are well specified. The models used also meet the stability
requirements based on cumulative sum of recursive residuals (CUSUM) and CUSUM of squares
(CUSUMSQ).
Table 4: Results of Diagnostic Checking
Country
Serial
correlation
)1(2
[p-value]
Functional
form
)1(2
[p-value]
Normality
)2(2
[p-value]
Heteroscedasticity
)1(2
[p-value]
CUSUM CUSUMSQ
Indonesia 2.53[0.10] 2.42[0.13] 0.64[0.72] 0.62[0.81] S S
Malaysia 0.18[0.83] 0.07[0.79] 0.79[0.67] 0.54[0.89] S S
Singapore 1.94[0.19] 1.94[0.19] 0.75[0.68] 1.60[0.20] S S
Note. S signifies stable model. The graphs can be requested from author. The numbers in brackets [ ] are p-values.
Table 5 presents the estimates of the long run parameters from ARDL and DOLS analyses.
Generally, the results from both ARDL and DOLS are consistent in term of the expected signs
for all three countries. TO (significant at 1% level) is found to have a positive influence on CO2
for both Indonesia and Malaysia. On the other hand, TO in Singapore is significant (at 5 and
10%) and negative. The positive influence of TO on CO2 for both Indonesia and Malaysia
implies that trade liberalisation that encourages exports may incur higher level of pollution rate
for these two countries. This finding is supported theoretically by Grossman and Kruger (1991).
Similar expected signs are detected for GNI influence on CO2 in Indonesia, Malaysia and
Singapore. GDI is found to be not significant for both ARDL and DOLS estimations in
Indonesia. This means that the level of domestic investment does not influence the CO2 level in
this country. The only difference is that the impact of economic development based on DOLS
estimation is not significant for both Indonesia and Singapore. The negative influence of
economic development on CO2 in Singapore means that with higher level of development, it
increases the standard of living of the people and therefore raises the demand for better
environment quality. Meanwhile, GDI is found to be positive in Malaysia but negative according
to Singapore estimation. The positive value of GDI in Malaysia means that domestic
investment is harmful for the environment in Malaysia. This is not surprising because production
technologies in Malaysia may not have fully adopted greener technology to reduce the CO2
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release, therefore polluting the environment. As for Singapore, the domestic investment faces
much stricter environmental controls by the government and thus reducing the environmental
degradation. Energy consumption (EN) in Indonesia and Singapore worsen the environment
quality while in Malaysia, energy consumption helps to improve the environment quality. The
remaining interest of the paper is the coefficient on income inequality (grey area). The estimate
is found to be negative for Indonesia. This negative sign means that higher GINI coefficient
(lower income equality) is associated with higher CO2 emissions or from the result, a 1%
increase in GINI will increase the environmental degradation by 0.27% (0.63%). As for
Malaysia and Singapore, the positive signs indicate that low GINI (greater income equality)
decreases CO2 emissions. In other words, 1% decrease in GINI will decrease the pollution by
0.61% (0.35%) for Malaysia and 3.44% (4.82%) for Singapore. This finding supported the
political economy argument that more equal distribution of power and income in Malaysia and
Singapore over the past four decades has increased demand by Malaysian and Singaporean
citizens for cleaner environment and induced policy responses, which in turn has led to more
stringent environmental standards and stricter enforcement of environmental laws, thereby
enhancing environmental quality. The above outcome for Malaysia and Singapore was similar to
the studies done in United States (Baek and Gweisah, 2013).
Table 5: Estimation of Long Run Elasticities
Indonesia
LNCO2
(2,0,4,1,1,0)
Malaysia
LNCO2
(4,4,3,4,4,3)
Singapore
LNCO2
(4,4,4,0,4,4)
Variables ARDL DOLS ARDL DOLS ARDL DOLS
Constant -6.69*** -3.43 -13.05*** -11.91*** 37.18*** 53.32***
LNGDI -0.07 0.07 0.11** 0.15*** -0.52* -1.70***
LNTO 0.35*** 0.26** 1.06*** 0.47*** -0.96* -1.43**
LNID -0.27*** -0.63** 0.61* 0.35* 3.44*** 4.82***
LNGNI 0.52** 0.19 0.79** 1.00*** -0.71*** 0.07
LNEN 0.65*** 0.94 -0.38 -0.09*** 0.98*** 0.28
Note: (*),(**),(***) indicate significant at 10%,5% and 1% significance level respectively. Number in parentheses
is standard errors.
Lastly, Table 6 below reveals the outcome for the estimation of short run elasticities. Based on
lag 0 (grey area) for Indonesia, GNI and EN are positive and significant at 1% level. This means
that in the short run, increase in both GNI and EN lead to environmental degradation in
Indonesia. GDI and ID are found to be not significant and thus have no influence on Indonesia’s
environment. On the other hand, TO has a significant and negative effect on CO2 emission. As
for Malaysia, only ID and GNI are found to have positive influence on CO2. The results are
more favorable for Singapore. The short run estimation shows that TO, ID and GNI have
significant negative influence on CO2 emission in Singapore while EN is found to be positively
related to the environment. The long run relationship based on ECM model are also supported
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via the negative and significant values of error correction term (ECT) obtained for each model.
ECT reflect the speed of adjustment for each model and the negative value mean that the
variables in the model will converge in the long run. The highest speed of adjustment is detected
for Singapore (-1.85), followed by Malaysia (-1.56) and Indonesia (-0.86). Approximately,
185%, 156% and 86% disequilibria from the previous year’s shock converge back to the long
run equilibrium in the current year. The high R squares for all three models suggest that almost
95% and above of the pollution in the countries studied are explained by the independent
variables in the model.
Table 6: Estimation of Short Run Restricted Error Correction Model (ECM)
Indonesia Malaysia Singapore
Variables ∆ Coefficient Variables ∆ Coefficient Variables ∆ Coefficient
D(LNCO2(-1)) 0.56*** D(LNCO2(-1)) 0.21 D(LNCO2(-1)) 1.06*
D(LNGDI) -0.06 D(LNCO2(-2)) 0.15 D(LNCO2(-2)) 0.39
D(LNTO) -0.25*** D(LNCO2(-3)) 0.38* D(LNCO2(-3)) 0.73**
D(LNTO(-1)) 0.24** D(LNGDI) -0.09 D(LNGDI) -0.14
D(LNTO(-2)) -0.11 D(LNGDI(-1)) 0.55** D(LNGDI(-1)) 0.40
D(LNTO(-3)) -0.25*** D(LNGDI(-2)) 0.46* D(LNGDI(-2)) 1.14
D(LNID) -0.06 D(LNGDI(-3)) -0.41** D(LNGDI(-3)) -0.79
D(LNGDP) 0.91*** D(LNTO) 0.06 D(LNTO) -1.79**
D(LNEN) 0.56*** D(LNTO(-1)) 0.45 D(LNID) -1.85**
ECT(-1) -0.86*** D(LNTO(-2)) -1.01** D(LNID(-1)) -0.46
D(LNID) 0.65*** D(LNID(-2)) 0.39
D(LNID(-1)) -0.29 D(LNID(-3)) 4.39***
D(LNID(-2)) 0.58** D(LNGDP) -1.54**
D(LNID(-3)) 0.51** D(LNGDP(-1)) 0.10
D(LNGDP) 2.12** D(LNGDP(-2)) 0.03
D(LNGDP(-1)) 0.65 D(LNGDP(-3)) -0.299
D(LNGDP(-2)) -2.36*** D(LNEN) 0.58**
D(LNGDP(-3)) 1.13** D(LNEN(-1)) -0.51
D(LNEN) 0.13 D(LNEN(-2)) -0.48*
D(LNEN(-1)) -0.97** D(LNEN(-3)) -0.52**
D(LNEN(-2)) 0.89*** ECT(-1) -1.85***
ECT(-1) -1.56**
R square 0.98 R aquare 0.99 R square 0.95
Note: Dependent variable is D(LNCO2). (*),(**),(***) indicate significance at 10%,5% and 1% levels.
6. Conclusion
The primary objective of this study is to assess the short and long run effects of income inequality,
domestic investment, trade openness, per capita real income and energy consumption on CO2
emission in Malaysia, Indonesia and Singapore using an ARDL and DOLS techniques. The results
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of ARDL show that income inequality and CO2 emission for both Malaysia and Singapore have
positive relationships suggesting that greater equality distribution of income in these countries has
a beneficial effect on environmental quality. This finding is consistent with the results of Magnani
(2000). As for the case of Indonesia, there is a negative relationship between income distributions
on CO2 emissions suggesting that higher income distribution worsens the pollution level. GDI,
TO and GNI have beneficial effects on environmental quality in Singapore whereas EN has a
detrimental effect on pollution. As for Malaysia and Indonesia, higher TO and GNI are found to
increase the air pollution in these countries. Besides, higher usage of EN in Indonesia increases
the environmental problem while in Malaysia, EN was not suitable to explain the model as it is
not statistically significant.
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