Economic impacts of petroleum industry in states of Pahang and Terengganu

Petroleum industry in Malaysia has created significant contribution to the Malaysian economy as a whole. However, the growth and development of the industry does not necessarily to bring considerable economic linkages to the local and neighboring economies where the industry is located, and thus f...

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Main Authors: Mohd Yusof Saari, Muzafar Shah Habibullah, Chakrin Utit, Maji, Ibrahim Kabiru
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2018
Online Access:http://journalarticle.ukm.my/19800/
http://journalarticle.ukm.my/19800/1/jeko_522-12.pdf
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author Mohd Yusof Saari,
Muzafar Shah Habibullah,
Chakrin Utit,
Maji, Ibrahim Kabiru
author_facet Mohd Yusof Saari,
Muzafar Shah Habibullah,
Chakrin Utit,
Maji, Ibrahim Kabiru
author_sort Mohd Yusof Saari,
building UKM Institutional Repository
collection Online Access
description Petroleum industry in Malaysia has created significant contribution to the Malaysian economy as a whole. However, the growth and development of the industry does not necessarily to bring considerable economic linkages to the local and neighboring economies where the industry is located, and thus fail to contribute to the economic diversification of local economies. This paper validates this expectation by examining the economic impacts of petroleum industry in the states of Terengganu and Pahang. Regional input-output model that developed by using location quotient, has been used as the main methodology in this paper. Results are consistent with our expectation that the state of Terengganu does not benefit largely from the petroleum industry but contributes more to the economic diversification for the state of Pahang. One of the explanations to this finding is that petroleum related activities such as petroleum refinery and support services are outsourced to the state of Pahang.
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spelling oai:generic.eprints.org:198002022-09-21T06:53:52Z http://journalarticle.ukm.my/19800/ Economic impacts of petroleum industry in states of Pahang and Terengganu Mohd Yusof Saari, Muzafar Shah Habibullah, Chakrin Utit, Maji, Ibrahim Kabiru Petroleum industry in Malaysia has created significant contribution to the Malaysian economy as a whole. However, the growth and development of the industry does not necessarily to bring considerable economic linkages to the local and neighboring economies where the industry is located, and thus fail to contribute to the economic diversification of local economies. This paper validates this expectation by examining the economic impacts of petroleum industry in the states of Terengganu and Pahang. Regional input-output model that developed by using location quotient, has been used as the main methodology in this paper. Results are consistent with our expectation that the state of Terengganu does not benefit largely from the petroleum industry but contributes more to the economic diversification for the state of Pahang. One of the explanations to this finding is that petroleum related activities such as petroleum refinery and support services are outsourced to the state of Pahang. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/19800/1/jeko_522-12.pdf Mohd Yusof Saari, and Muzafar Shah Habibullah, and Chakrin Utit, and Maji, Ibrahim Kabiru (2018) Economic impacts of petroleum industry in states of Pahang and Terengganu. Jurnal Ekonomi Malaysia, 52 (2). pp. 149-161. ISSN 0127-1962 https://www.ukm.my/jem/issue/v52i2/
spellingShingle Mohd Yusof Saari,
Muzafar Shah Habibullah,
Chakrin Utit,
Maji, Ibrahim Kabiru
Economic impacts of petroleum industry in states of Pahang and Terengganu
title Economic impacts of petroleum industry in states of Pahang and Terengganu
title_full Economic impacts of petroleum industry in states of Pahang and Terengganu
title_fullStr Economic impacts of petroleum industry in states of Pahang and Terengganu
title_full_unstemmed Economic impacts of petroleum industry in states of Pahang and Terengganu
title_short Economic impacts of petroleum industry in states of Pahang and Terengganu
title_sort economic impacts of petroleum industry in states of pahang and terengganu
url http://journalarticle.ukm.my/19800/
http://journalarticle.ukm.my/19800/
http://journalarticle.ukm.my/19800/1/jeko_522-12.pdf