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Jurnal Ekonomi Malaysia

52 (1) 2018 225 – 241

Macroeconomic Variables and In-Migration in Malaysia’s Developed States
Migrasi Masuk dan Pembolehubah Makroekonomi bagi Negeri-Negeri Maju di Malaysia

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

ermawati@umt.edu.my

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

shahidanshaari@unimap.edu.my

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

haslin@umt.edu.my

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

diananabila@ums.edu.my

Abstract

Nowadays, in-migration is one of the important phenomena that affects urbanisation and development in the destination area. Indirectly, it will cause the rapid growth of the population, leads to overcrowding, competition for jobs, unemployment, poverty and the formation of new towns in the destination area especially urban areas. However, for rural destination areas, in-migration of professionals is important to stimulate economic growth. Hence, the objective of this study is to forecast and analyze the effect of macroeconomic variables on in-migration into developed states in Malaysia. Using the annual time series data from 1980 to 2012, Autoregression Distributed Lag (ARDL) and Granger-causality test were conducted. The findings have found that long run and short run relationships exist between in-migration and macroeconomic factors for developed states. The forecasting until year 2020 expects that in-migration will increase in Perak and Penang. Investment factors that are concentrated in the developed states also affect the population’s decision to migrate especially in Kuala Lumpur and Selangor. To promote the economic growth, foreign direct investment and domestic investment for development sector should be intensified to improve household incomes in the region. Besides, Perak and Selangor need to improve the existing policies to ensure that there is an increase in foreign direct investment and domestic investment.

Keywords

forecasting; In-migration; investment; macroeconomics; overcrowding

Author’s Acknowledgement

Thank you to the Journal Ekonomi Malaysia (JEM) for considering publish this article. Also thanks to all authors because together contribute in preparing this article. Hopefully, this article can help reader to increase their knowledge about in-migration in Malaysia. In addition, this article will hopefully help the policymakers to find best ways to control in-migration in Malaysia.

http://dx.doi.org/10.17576/JEM-2018-5201-19
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Hussain, , Shaari, , Mohamad Akhir, , & Chau, (2018). Macroeconomic Variables and In-Migration in Malaysia’s Developed States. Jurnal Ekonomi Malaysia, 52(1), 225–241. http://dx.doi.org/10.17576/JEM-2018-5201-19

@article{hussain2018macroeconomic,
  title={Macroeconomic Variables and In-Migration in Malaysia’s Developed States},
  author={Hussain, Nor Ermawati and Shaari, Mohd Shahidan and Mohamad Akhir, Noor Haslina and Chau, Diana Nabila Abdullah},
  journal={Jurnal Ekonomi Malaysia},
  volume={52},
  number={1},
  pages={225—241},
 

year={2018},
}

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