Inflation uncertainty and economic growth: evidence from the LAD ARCH model

In this paper, we combined the panel data and least absolute deviation autoregressive conditional heteroscedastic (ARCH) (L ₁-ARCH) model to infer on the relationship between inflation uncertainty and economic growth in five emerging market economies. Two interesting findings emerged from the analysis; first, we confirmed that the inflation uncertainty has a significant and negative effect on economic growth. Second, inflation is also an important variable and it is detrimental to economic prospects in the fast-growing Association of Southeast Asian Nations (ASEAN) economies. All in all, the empirical findings suggest that greater stability in the economy may be desirable in order to stimulate economic growth in the region.     

Feasible robust estimator in restricted semiparametric regression models based on the LTS approach

Under some nonstochastic linear restrictions based on either additional information or prior knowledge in a semiparametric regression model, a family of feasible generalized robust estimators for the regression parameter is proposed. The least trimmed squares (LTS) method proposed by Rousseeuw as a highly robust regression estimator is a statistical technique for fitting a regression model based on the subset of h observations (out of n) whose least-square fit possesses the smallest sum of squared residuals. The coverage h may be set between n/2 and n. The LTS estimator involves computing the hyperplane that minimizes the sum of the smallest h squared residuals. For practical purpose, it is assumed that the covariance matrix of the error term is unknown and thus feasible estimators are replaced. Then, we develop an algorithm for the LTS estimator based on feasible methods. Through the Monte Carlo simulation studies and a real data example, performance of the feasible type of robust estimators is compared with the classical ones in restricted semiparametric regression models.     

Negative impact induced by foreign workers: Evidence in Malaysian construction sector

Though foreign workers served to overcome the labor shortage in the Malaysian construction market, over-dependence on foreign workers and the negative impacts induced have become a serious social problem. The aims of this research are to identify those negative impacts induced by foreign workers in the Malaysian construction market and to determine strategies in minimizing these negative impacts. Data were collected through a structured interview and survey. The questionnaires were delegated to professionals in construction projects who have direct contacts with foreign workers. Only respondents from those companies registered under the CIDB grade G7 were chosen for this survey. There were 117 sets of questionnaires completed and analyzed through the structured interviews. The three principal factors attracting foreign workers to the Malaysian construction market are “Preference of the employers”, “Lifestyle and working conditions”, and “Unattractiveness of the career pathway”. The main negative impacts induced by foreign workers are “Over-dependence on foreign workers”, “Increment in criminal activities or social problems”, and “Existence of illegal workers”. This research proposes that strategies such as “Attract local workers into the construction industry”, “Industrialized Building Systems”, “Eliminate illegal migration”, and “Improve governance structure” would be successful in minimizing negative impacts induced by foreign workers.     

Knowledge modelling for contract disputes and change control

The construction industry involves many participants with different perspectives and requirements. Contracts can provide significant value, and yet ineffective contract management frequently leads to disputes. In practice, contracts are hardly reviewed, and contract management is limited. This study aims to investigate how firms can improve their internal processes relating to knowledge management (KM) through effective contract management to aid construction practitioners in managing contract disputes and changes. Using a questionnaire survey and a workshop involving experienced industry practitioners and researchers, the findings reveal that project- and individual-level implementation of KM processes is stronger than at the organizational level, and also there are substantial human resources (HR) practices that support contractual KM. Workshop participants believe efficient and effective KM can minimise losses from contract changes and disputes. A construction contract management process framework, a 19-step benchmarking model for contract management and a construction planning checklist for contractors are proposed.     

Exploring the underlying factors inducing design changes during building production

Although design changes is a significant inhibiting factor to schedule management and cost control in building projects globally, however, the reasons remain largely unknown, and the construction industry is unable to manage the problem effectively. A triangulated approach was employed where 39 reasons were first explored through semi-structured interviews with experienced practitioners. Subsequently, a national survey was used to rank the reasons. ‘Value engineering’, ‘lack of coordination among various professional consultants’ and ‘change of requirement’ ranked the highest. Next, exploratory factor analysis revealed eight underlying factors. Finally, the influence of these manifested factors was validated statistically using partial least squares based structural equation modelling. The three most critical factors found are ‘competency of project team', ‘quality and workmanship’, and ‘site constraints and safety consideration’. This paper contributes to the development of new underlying factors inducing design changes, which largely explain design changes as well as enable practitioners and researchers to devise effective preventive measures in controlling design changes in building projects.