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Jurnal Ekonomi Malaysia

49 (2) 2015 135 – 147

The Demand for Foreign Workers in the Manufacturing Sector in Malaysia
Permintaan Terhadap Buruh Asing dalam Industri Pembuatan di Malaysia Permintaan Terhadap Buruh Asing dalam Industri Pembuatan di Malaysia

Fakultas Ekonomi Universitas Andalas
Kampus Unand Limau Manis, Padang 25163
INDONESIA

nas_ri2002@yahoo.com

Fakultas Ekonomi Universitas Andalas
Kampus Unand Limau Manis, Padang 25163
INDONESIA

feua2000@yahoo.com

Pusat Pengajian Ekonomi
Fakulti Ekonomi dan Pengurusan
Universiti Kebangsaan Malaysia
43600 UKM Bangi Selangor
MALAYSIA


Abstract

The objective of this study is to investigate the demand for foreign workers in the manufacturing sector in Malaysia. In order to achieve this objective, the simultaneous equation model is developed and the analyses are based on data from the Industrial Survey conducted by the Department of Statistics Malaysia for the period of 1994-2005. The Labor demand model is derived from the Cobb-Douglas production function. The results from the estimation of the production function show that foreign workers in the category of professional significantly contributed to the output growth of ISIC 35, ISIC 36 and ISIC 38, while skilled workers and technical-supervisors also give a significant contribution to output growth in ISIC 31. The demand for foreign workers reveals that professionals and technical-supervisors are positively related to output level and wage rates. However, they are negatively related to the price of capital and local wage rate. It means that the professional and technical-supervisor foreign workers complement the local workers and capital.

Keywords

Demand; foreign workers; output; wage
http://dx.doi.org/10.17576/JEM-2015-4902-11
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Bachtiar, , Fahmy, , & Ismail, (2015). The Demand for Foreign Workers in the Manufacturing Sector in Malaysia. Jurnal Ekonomi Malaysia, 49(2), 135–147. http://dx.doi.org/10.17576/JEM-2015-4902-11

@article{bachtiar2015demand,
  title={The Demand for Foreign Workers in the Manufacturing Sector in Malaysia},
  author={Bachtiar, Nasri and Fahmy, Rahmi and Ismail, Rahmah},
  journal={Jurnal Ekonomi Malaysia},
  volume={49},
  number={2},
  pages={135—147},
 

year={2015},
}

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