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This thesis is concerned with the two main causes of wage inequality in the Malaysian labour market during the period 1983--1999. These are the impact of changes in trade patterns and technological change. These two hypotheses have been well tested using the Heckscher-Ohlin and Samuelson (HOS) models following the pioneering work by Lawrence and Slaughter (1993), Haskel and Slaughter (1998--2002) and Wood (1994). This theoretical framework provides three methodologies to measure relative demand changes namely: a decomposition approach, a cost function approach and the use of earnings equations which can then be used to examine the significance of trade and technology in determining the changes. All of these are used in the study. The study has employed two sets of data. Firstly, we have used the five-digit aggregate data for the manufacturing sector between 1983--1999 to estimate the changes that take place between, and within, industries in the sector. The second set of data comprises micro-level data from the Household Income Survey (HIS) for several years during the period 1984 to 1997. As far as the different sets of data are concerned, at a macro-level we have divided labour groups into skilled, semi-skilled and unskilled workers. On the other hand, the skills measured in the micro-level data are based on the workers' levels of education though we have based these on similar levels of skill as in the macro analysis. The main finding of this thesis is that changes in the relative demand for labour favour semiskilled workers and that technological change is the main explanation for the changing pattern of employment in the Malaysian economy. The study also finds that changes in the pattern of trade have had only small effects in explaining the changes in the relative demand for labour. Notwithstanding this, this study finds a some support for the prediction of the basic HOS model in that trade can explain the changes in industry skill wage premia at higher levels of education. In addition, and not unexpectedly, trade is also found to increase the relative demand for production workers at low levels of education. Interestingly, the study also finds that technological change is more dominant in explaining changes in the relative demand for males whilst the effects of trade are most evident for female workers. Finally, the study also shows that changes in relative demand are most evident in terms of the way they affect employment rather than through changes in wage levels.

This study is the first of its kind in the Sultanate of Oman to examine skill formation and Omanisation processes using qualitative methods. This study focuses on the relationship between education, skill formation and economic development in Oman. In particular, it examines the government 'Vision 2020' strategy on the development of human capital to deliver economic growth, especially through the expanding private sector. The upgrading of human capital is believed to be central to the process of Omanisation, that is, a plan to replace expatriate workers with Omani nationals. The main interest of this study is the perceptions and reactions of three stakeholders policy makers, college managers and private sector employers. An aim of this study was to contribute to a greater understanding of Oman's economic development, skill formation and Omanisation process and identify barriers to the implementation of Omanisation in the private sector. Empirical data was gathered from interviews of policy makers, college managers and employers in the private sector in the Sultanate of Oman. Secondary sources of information included books, articles, newspapers, magazines, journals, working papers, conference papers, reports, internet, minutes of meetings and Royal speeches. The study contributes to contemporary theoretical arguments concerning the relationship between supply and demand in national skill formation. Therefore, a conceptual framework was developed capable of examining the linkage between supply and demand for skilled labour in Oman. This theoretical approach was used to contextualise an examination of vocational education and training (VET) which was central to 'Vision 2020'. Three case studies were used to provide insights of the key informants (stakeholders), enabling an assessment of current VET and changes needed to deliver the future requirements of the Oman labour market. This study concludes with a discussion of the major findings and suggests some useful steps towards Omanisation. Among the main findings in this study is the limited articulation between government organisations, framing providers and employers in the private sector, and too many government bodies responsible for different aspects of education and framing.

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Over the last 20 years there has been a growth in the relative importance of labour economics as an area of economics, particularly for labour force participation, retirement, and labour force transition. However in Taiwan, due to a lack of suitable data, most of the work in this area has been cross-sectional and time-series data analyses. This thesis uses micro panel data to fill this gap. The data is from the Survey of Health and Living Status of the Middle Aged and Elderly in Taiwan, a rich source of information on employment history from 1989 to 2003. The main econometric methods use the binary response models and continuous-time hazard models to analyse labour force participation, retirement, and labour force transition, paying particular to gender differences. The main empirical results show that older workers, female workers, Mainlander workers, and workers with poor health have a lower probability of labour force participation and a higher hazard rate of retirement. In contrast, Hakka workers, workers with better educational attainment, married male workers, and rural workers have a higher probability of participation in work and a lower hazard rate of retirement. In particular, there is an interesting and conditional result for the Pension variable that for workers with less than 35 years employment duration, the survival curve for workers eligible for a pension lies above that of workers ineligible for a pension; and after 35 years, die results are expected to change, particularly for women. Furthermore, workers with higher predicted earnings have a lower hazard rate of retirement, and workers with higher predicted pension income have a higher hazard rate of retirement. Finally, in the case of labour force transitions, the duration models incorporate time-varying covariate factors and show that being in poor health increases the hazard rate of retirement, other things being equal. In addition, as the models consider unobserved heterogeneity factors and find that most estimated coefficients on the regressors are lightly larger in magnitude than the corresponding coefficients in the reference model. Further, unobserved heterogeneity factors are also found to be less serious once time-varying covariates are included in the hazard model

Operating alongside with the formal financial sector, there has been less recognition about the important role played by informal finance through their complementary role in providing credit to the society. Among informal finance, pawnshop has grown in importance over the past few years especially during the tough economic climate. In Malaysia for instance, the pawnbroking business has served people in need of small instant cash since the 19th century in various forms. Due to the excessive interest rate and other malpractices imposed by the conventional pawnshops, Malaysian government initiated the first Islamic pawnbroking in 1992 which was set up by the Terengganu Islamic Religious and Malay Customs Council namely as the Muassasah Gadaian Islam Terengganu, which has experienced an overwhelming success in terms of expanding in the informal economy. In 2010, there were 329 of institutions offering Islamic pawnbroking operating side by side with 259 licensed conventional pawnshops which shows a remarkable increase in the Islamic pawnbroking. Given this background, the research aim is to explore and analyse the socio-economic consequences of pawnshops crediting in Malaysia through the perceptions of the participants. In doing so, this study will examine the factors determining people’s preferences for pawnshop and also exploring the perceptions and opinions of the customers and the participating pawnbrokers in Malaysia on various aspects and consequences of pawnbroking. Importantly, it will analyse specifically the impact of Islamic pawnbroking on the socio-economy of the Malaysian society. In an attempt to fulfill the aims of the research study, first, the questionnaires survey were administered to both customers and pawnbrokers of the conventional and Islamic pawnshops in order to distinguish the processes of lending, factors determining pawnshops’ selection, and also the perceptions of Malaysian customers and pawnbrokers regarding the role of pawnshop institution in social development hence in economic development related issues. Second, a semi-structured interview were subsequently conducted with the leading individuals of the Islamic pawnbrokers in order to develop in-depth ideas and understanding about the underlying principle of Islamic pawnbroking and other issues related. Furthermore, a SWOT analysis is employed to analyse the prospect of Islamic pawnbroking in future with possible recommendations that could be considered by the government, pawnbrokers, and the customers as well. The findings from the surveys analysis demonstrate that the customers of Islamic pawnshops attest the positive role of pawnshop in both economic and social aspects of their lives especially in the case of low-income groups as compared to the conventional pawnshops. On the other hand, the results from the pawnbrokers’ analysis revealed that Islamic pawnbrokers demonstrated a promising prospect of the pawnshops’ business as compared to the conventional pawnbrokers as the latter operates with profit maximization and neglect the social welfare of the customer. Importantly, while the findings of the study renders valuable information in terms of behavioural dimension and customer preferences in pawnbroking, the findings are also useful for the businesses and government in considering the future development related to ar-rahn shops.

Despite being an oil-rich country, Saudi Arabia, like any other developing country, is faced with the difficulty of economic development and the creation of jobs for its growing population. Since human resources in the initial period of economic development were met with immigrant workers in Saudi Arabia, expatriates constitute a large part of the workforce in Saudi Arabia. Therefore, in responding to job creation needs, the Government of Saudi Arabia initiated the process of Saudisation, aiming to transfer the available jobs currently filled by expatriates to Saudi nationals. This research, hence, aimed to explore the perceptions of Saudisation in the private sector among employers, employees and Saudi job seekers in Saudi Arabia through a questionnaire schedule. Perceptions of Saudisation-related issues, the government’s policies to ensure Saudisation, and initiatives to enhance Saudisation were surveyed. Relevant issues, such as the type of employment competencies and personal specifications required in the private sector, and whether Saudi workers and jobseekers possessed them to an adequate level, were also explored. The research findings on perceptions of Saudisation-related issues included the willingness of employers to employ adequately qualified Saudi workers; lack of skills required in the private sector among Saudi workers and their lower productivity compared to non-Saudi workers; social prestige among Saudi workers; and the negative impact of imposed-Saudisation on the private sector. Support for the proposed government policies of minimum wage and social security policy to ensure Saudisation in the private sector and awareness among employers of their Saudisation-related social responsibility to encourage Saudisation, were found. Rewarding businesses that achieved a high level of Saudisation, increasing awareness of the importance of work among Saudis, and offering them more jobs in the private sector were initiatives advocated to enhance Saudisation. Employment competencies and person specifications required by private sector employers included IT or technology; language; vocational, management and administrative skills; continuous training and self-development; respect for work and regulations; and education with more emphasis on degree and post-secondary qualifications. Differences in the extent of agreement on all the issues were explored and fundamental differences in perceptions between employers on one hand and employees and job seekers on the other were found. Statistically significant associations were also found between employers' perceptions and their demographic and organizational characteristics (qualifications, length of tenure in organisation, type of business, size of business in terms of number of employees). These differences and associations seem supportive of the inferences and arguments made in the discussion on the main findings of the research on perceptions. The dearth of research on Saudisation, especially in the private sector, as perceived by its employers, employees and Saudi job seekers, who are the stakeholders most affected by it, render the above findings a significant contribution to knowledge on Saudisation and the localization of human resources in the Gulf Corporation Council and MENA countries.

The macroeconomic consequence of immigration is a disputable area among many interested parties as evidenced by the empirical studies. Most studies, however, employ Anglo-Saxon countries as their subjects, while there is an increasing demand for studies on the economic consequences of immigration in developing countries. As a developing country, Malaysia has attracted immigration over the years, and the population of migrant labour in Malaysia has reached more than two million in 2008, which makes up 7% of the total population and 20% of total labour force. Thus, such large presence has provided a rationale for an economic analysis on the impact of immigrations on the Malaysian economy. This research, hence, aims to analyze the economic impact of immigration in Malaysia in the context of trade, remittance and unemployment in an interrelated manner. These topics are examined in detail in three separate empirical essays. Specifically, the first essay examines the link between bilateral trade and immigration, while the second essay explores the relationship between remittances of the Indonesian workers in Malaysia and the macroeconomic variables both in Malaysia and Indonesia. The last empirical essay analyses the relationship between unemployment and immigration in Malaysia. These empirical essays use quantitative research methodology in the form of panel and time series data analysis. However, each essay is based on a different theoretical framework, econometric methods, timelines and samples due to availability data and the nature of the study. The findings of the first essay indicates that immigration increases both exports and imports through both preference and immigration-link mechanisms, implying that immigrants play a vital role in fostering trade between Malaysia and countries of origin. In the second essay, it is found that Indonesian labour in Malaysia take macroeconomic conditions in both countries into account in their remittance decisions and the findings demonstrate that the main motives to remit is altruism and portfolio investment, indicating the importance of the level of economic activities in both countries. The third essay reveals that there is a lack of evidence supporting the hypothesis of adverse employment effect of immigration in Malaysia, implying that the job-creation effect of immigration has taken place, which has resulted in further economic and employment growth in both public and private sectors. In conclusion, immigration is vital for both host and home countries’ economic developments as the findings of this research have demonstrated, thus refuting the claims that their presence brings more harms than benefits.

The understanding the effects of financial constraints and firms’ activities is an important issue from both macroeconomics and microeconomics perspectives. The recent development of the asymmetric information approach has established a link between finance and the real activity. A good understanding of the effects of financial constraints and firms’ activities would provide valuable information about the mechanism through which monetary policy affects real economic activities and the understanding of the macroeconomic dynamics. From a microeconomics perspective, the study of the effects of financial constraints also contributes to the understating of firms’ corporate finance behaviors and the importance of firm heterogeneity in firms’ activities. This research uses two large samples of firm-level panel data from China to study the effects of financial constraints on three key firm activities. First, using an Euler equation investment model, we empirically study the effects of financial constraints on firms’ fixed investment in China over the period 1998-2005. We find strong evidence indicating there is a “lending bias” at work. Where the state-owned enterprises and collectively owned enterprises are less financially constrained that privately owned firms. The evidence also suggests that listed firms are more financially constrained than unlisted firms. Moreover, the results indicate that the presence of foreign ownership helps to reduce the level of financial constraints faced by firms. Second, we use an error correction model augmented with cash flow to test the effects of financial constraints on firms’ inventory investment in China with emphasis on the firm heterogeneity. We find that cash flow is an important determinant for inventory investment of privately owned firms, foreign owned firms, firms with no political affiliations to the central or local governments. The result also suggests that the level of financial constraints faced by firms increased over the study period. Last, we test whether there is a link between financial factors and firms’ export decisions in China. We find that firms’ liquidity and leverage levels are important determinants of firm’s exports participation decisions, where the effects are strongest for privately owned firms. When we focus on the exports participation decision of the private firms, we find financial factors are particular important for firms that are smaller, younger and with no political affiliations.