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Journal of Economic Integration
July 20, 2017 15:42
JEI-17-049
Article
J08, J31, J23, J44
Nasri Bachtiar

Abstract

The Impact of Foreign Workers on The Manufacturing
Output, Employment and Wages in Malaysia
The objectives of this study are to investigate the impact of foreign workers on the
manufacturing output, employment and wages. In order to achieve these objectives, the
simultaneous equation models are developed and the analyses are based on data from the
Industrial Survey conducted by the Department of Statistics Malaysia. The Labor demand
models have been derived from the Cobb-Douglas production function. These included
the demand function for foreign workers and wage function for local workers. The results
from the estimation of the production function show that foreign workers in the category
of professional is significantly contributed to the output growth. The demand for foreign
workers reveals that the professional is positively related to output level and their
respective wage rates. However, they are negatively related to the price of capital and
local wage rate. That means the professional of foreign workers are complement with the
local w! orkers and capital.
Manuscript file:
- A_merges_jei_20170055_0.pdf (1241KBytes)
Dear Dr. Nasri Bachtiar:
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