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Journal of Emerging Trends in Engineering and Applied Sciences (JETEAS)


Article Title: Construction and Mining Including Quarrying Sector of Malaysia: A Comparative and Causality Analysis between 2001 -2010
by Raza Ali Khan, Mohd. Shahir Liew, Zulkipili Bin Ghazali and Noor Amila Bt Wan Abdullah Zawawi

Mining including quarrying and construction sectors are the two major sectors of industrialized and developed countries. Many other major productive sectors of economy rely on the activities and output of these sectors. The sectors of mining, quarrying and construction have significant socio-economic environment and manpower effect in Malaysian economy. The purpose of this study is to examine the causal relationship between these two fundamental sectors of Malaysian economy. The Granger causality model used to investigate the link and direction of link between construction and mining and quarrying sector of Malaysia. The quarterly data series for the study is obtained from Statistics Department Government of Malaysia. The results of the Granger causality analysis show that there is a unidirectional relationship between the sectors, and mining and quarrying sector has had a significant effect on construction sector during study period 2001-2010. The construction sector responding time against the shock received from the mining and quarrying sector is 6 months. The results of descriptive statistical analysis show that the annual average contribution to GDP and output of the mining and quarrying sector were 2.65 times more than the construction sector, however the employment contribution of the construction sector was 22 times and growth was 5 times higher than the mining and quarrying sector during the study period. The results of the study are informative and useful for ministries of sectors, policy makers and interested parties of the sector.
Keywords: construction; mining and quarrying; time series; granger causality; GDP
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ISSN: 2141-7016

Editor in Chief.

Prof. Gui Yun Tian
Professor of Sensor Technologies
School of Electrical, Electronic and Computer Engineering
University of Newcastle
United Kingdom



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