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Jurnal Ekonomi Malaysia

52 (2) 2018 149 – 161

Economic Impacts of Petroleum Industry in States of Pahang and Terengganu
Impak Ekonomi Industri Petroleum di Negeri Pahang dan Terengganu

Faculty of Economics and Management
Universiti Putra Malaysia
43400 UPM Serdang Selangor
MALAYSIA

Institute of Agricultural and Food Policy Studies
Universiti Putra Malaysia
43400 UPM Serdang Selangor
MALAYSIA

mysaari@gmail.com

Faculty of Economics and Management
Universiti Putra Malaysia
43400 UPM Serdang Selangor
MALAYSIA

muzafar@upm.edu.my

Institute of Agricultural and Food Policy Studies
Universiti Putra Malaysia
43400 UPM Serdang Selangor
MALAYSIA

uchakrin@gmail.com

Faculty of Social and Management Sciences
Bauchi State University
NIGERIA

keibimaji@gmail.com

Abstract

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.

Keywords

employment; location quotient; Petroleum refinery; regional input-output; value added
http://dx.doi.org/10.17576/JEM-2018-5202-12
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Saari, , Habibullah, , Utit, , & Maji, (2018). Economic Impacts of Petroleum Industry in States of Pahang and Terengganu. Jurnal Ekonomi Malaysia, 52(2), 149–161. http://dx.doi.org/10.17576/JEM-2018-5202-12

@article{saari2018economic,
  title={Economic Impacts of Petroleum Industry in States of Pahang and Terengganu},
  author={Saari, Mohd Yusof and Habibullah, Muzafar and Utit, Chakrin and Maji, Ibrahim Kabiru},
  journal={Jurnal Ekonomi Malaysia},
  volume={52},
  number={2},
  pages={149—161},
 

year={2018},
}

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