An ARDL Approach in Food and Beverages Industry Growth Process in Malaysia

Abstract

<p class="MsoNormal" style="margin: 0cm 0cm 4pt; line-height: 12pt; mso-line-height-rule: exactly; mso-pagination: widow-orphan;"><span style="font-size: 10pt; mso-font-kerning: 0pt; mso-fareast-language: EN-US;" lang="EN-US"><span style="font-family: Times New Roman;">The study examines the process of growth in the value added of food and beverages industry in Malaysia. The per capita income, population, skill and export are likely to exhibit long run relationship with the value added growth of this industry. Using the newly developed autoregressive distributed lag (ARDL) by Pesaran <em>et al</em>, (1995,1997, 1999 and 2000), a long run steady state equilibrium relationship between the independent variables and the growth performances of food industries is detected. Specifically this study has shown that in addition to the size of the population and percapita income, export are closely related to the growth of the value added of food and beverages industry. This empirical result would help Malaysia aspiration of becoming a hub for the halal food industry a reality.</span></span></p

Drivers of halal orientation strategy among halal food firms

“…Halal market demand refers to the needs and wants of customers that have eventually created the local and global customer and the community pressure for halal products (Kamaruddin and Jusoff, 2009;Tieman, 2007). Thus to maintain customer trust, halal food firms have to ensure that they follow the requirements of standards in producing halal food products.…”

“…Consumer pressure for halal products is increased when consumers become more informed (Tieman, 2007;Kamaruddin and Jusoff, 2009). To achieve consumer trust, firms must ensure that they follow the requirements of halal, which can be achieved through HOS.…”

“…In terms of food, halal food is important to satisfy Islamic principles on food and maintain the quality of halal food. The quality of halal food covers cleanliness or hygiene, safety, preparation, storage, and purification aspects, which are called "tayyib," meaning wholesome or purity, nutritious, and safe (Kamaruddin and Jusoff, 2009). The presence of halal and tayyib ensures that halal food is secure and healthy (Muhammad, 2007;Hassan, 2011).…”

The influence of halal orientation strategy on financial performance of halal food firms

“…In other words, Muslims consume halal food to abide by their food choices based on their religious principles. Therefore, the “tayyib” of halal food — including its safety, nutrition, cleanliness and storage — must be ensured (Kamaruddin and Jusoff, 2009). Along with tayyib, halal guarantees the safety of a particular food product (Muhammad, 2007; Hassan, 2011).…”

Predominant Factors of Malaysia - Middle East Religious and Cultural Relations from the Perspective of Halal Food Supply Chain

“…In terms of food, Halal food is imperative to assure Islamic principles on food and uphold the quality of Halal food. The quality of Halal food consists of cleanliness or hygiene, safety, preparation, storage, and purification aspects, which are called "tayyib," meaning wholesome or limpidness, healthy, and safe (Kamaruddin & Jusoff, 2009). The existence of Halal and tayyib ensures that Halal food is safe and healthy (Hasnah Hassan, 2011;Muhammad, 2007).…”