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: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2018
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| Online Access: | http://journalarticle.ukm.my/19800/1/jeko_522-12.pdf http://journalarticle.ukm.my/19800/ https://www.ukm.my/jem/issue/v52i2/ |
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| Institution: | Universiti Kebangsaan Malaysia |
| Language: | English |
| Summary: | 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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