Flood Disaster and Mining Sector GDP Growth: The Case of Malaysia
|Author(s)||by Mai Syaheera M. Shaari, Mohd Zaini Abd Karim, Bakti Hassan Basri|
|Keywords||Flood Disaster, Mining Growth|
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Mining sector is one of a major sector of industrialized in many developing countries. Furthermore, many other major productive sectors of economy rely on the activities and output of mining sector. The sector of mining has significant socio economic environment and manpower effect in Malaysian economy. However, the occurrences of flood disaster in Malaysia are argued to have affected the mining sector. The purpose of this study is to examine the impact of flood disaster on the mining sector GDP growth in Malaysia for the period of 1960 to 2013. Several methods were employed to measure the impact of flood disaster on the mining sector GDP growth such as the Autoregressive Distributed Lag (ARDL) bounds testing approach, the Error Correction Model (ECM) test, the cumulative sum (CUSUM) and cumulative sum of squares (CUSUMsq) tests. The findings suggest that flood negatively affect mining GDP growth in both short run and long run. Furthermore, the duration of flood gives most impact on the mining GDP growth in both long run and short run. The results of the study have important implications for the mining sector in both long run and short run.
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