Excess Capacity and Entry Deterrence: The Case of Malaysian Palm Oil Refining Industry

Choo Sze Yi,Suhaila H A Jalil

doi:10.32890/mmj.18.2014.9012

Abstract

This paper empirically examines the relationship between excess capacity and probability of entry into Malaysian palm oil refining industry using time series data. Capacity and production, two components crucial to the study of excess capacity, were included in the estimation model. The analysis was conducted specifically in the Malaysian palm oil refining industry and the sample covered the period from 1976 to 2011. Logit model was employed in this analysis, where the results exhibited that excess capacity does not significantly influence probability of entry into the palm oil refining industry in Malaysia.

Highlights

An important part of capitalizing on human potential lies in fostering entrepreneurship
The Canadian International Development Agency (CIDA) in its report on Gender Situation Assessment and Analysis (GSAA) (2006) asserts that of the 70% of the population estimated to be living below poverty line over 65% are projected to be women
In the study conducted by Singh et al (2011) where these factors were categorized and data were collected from 300 small scale Nigerian women entrepreneurs to ascertain what motivated them to become entrepreneurs, the analysis revealed that challenge, self-achievement, desire for social recognition, desire to earn extra income, deregulation policies by the Nigerian government were the variables that appeared to be significant while the desire to build equity for retirement, to change careers, or the fact that women could not get a job or fear of unemployment do not play any significant role in their decision to become entrepreneurs

Summary

Introduction

An important part of capitalizing on human potential lies in fostering entrepreneurship. The important role that small businesses and entrepreneurship play in stimulating economic activity, creating jobs, alleviating poverty and uplifting living standards, has been recognized internationally as well as in Africa (Van Vuuren & Groenewald, 2007). Women entrepreneurship can only contribute to eradicating abject poverty and uplifting the standards of living. Statistics show that women are poorer than men. The UNDP (1995) estimated that, about 60 per cent of the world-poorest are women. Women are poorer because they are more vulnerable economically. Rais (2002) maintained that globally, women entrepreneurs constitute a disadvantaged group of economic agents. The Canadian International Development Agency (CIDA) in its report on Gender Situation Assessment and Analysis (GSAA) (2006) asserts that of the 70% of the population estimated to be living below poverty line over 65% are projected to be women

Objectives

Methods

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Conclusion