The Services Sector's Contribution as Well as Pollution Implication in the Malaysian Economy: An Input-Output Approach

Abstract

This paper analyzes the contribution of services sector as well as pollution implication of services sector for the production of different industries in the Malaysian economy. In the first part, the purpose of this paper is to provide direct and indirect service intensities that reveal the contribution of services sector in the Malaysian economy. And, in the second part, the quantitative assessment of selected air emissions of services sector in the economy is revealed during the time period 1991 to 2000. The findings indicate that the contribution of services sector almost steady during the time period and direct and indirect intensities of other sectors, transport & communication, trade, financial related service, public service and entertainment sectors are quite significant; however the CO, CO2, SO2 and NOx emissions from the selected sectors are quite high in 2000 compared to 1991.

Keywords: Services sector, Pollution, Input-Output, Malaysian economy

JEL Classification: G20, N5, A19