Firm dynamic productivity and economic growth
Citation for published version (APA):Che'Man, N., & Timmermans, H. (2010). Firm dynamic productivity and economic growth. In H. J. P.
Timmermans, & B. de Vries (Eds.), 10th International Conference on Design and Decision Support Systems, DDSS 2010 Eindhoven University of Technology.
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1
Firm Dynamic Productivity and Economic Growth
Noordini Che’Man and Harry Timmermans
Eindhoven University of Technology P.O.Box 513
5600MBEindhoven The Netherlands
N.Binti.Che.Man@tue.nl , H.J.P.Timmermans@tue.nl
Key words: Firm Demography, Economic Growth, Geographical Information System
Abstract: This paper examines the dynamics of firms and their productivity growth in Kuala Lumpur during period 1990 to 2007. Using a dataset of Kuala Lumpur firms, proximity and area analysis are conduct to examine the location of firms within five transportation feature (highways, major roads, rail networks, rail stations, and terminals) and in the CBD area. The result of empirical analyses shows that most of these firms are in Financing, Insurance, Real Estate, Investment and Business Services. We also find that most of the firms are located proximate to major roads, highways and in the CBD area.
1.
INTRODUCTION
Urban growth is an economic phenomenon in which growth of activities is strongly influenced by the urbanization process (Black and Henderson, 1999). It also creates a new dynamic system and many problems occur. Urban growth consists of a complex subsystem which involves multiple actors with different patterns of behaviour at various scales. In order to understand the growth process in a region, firm demography could contribute to a better understanding of the dynamics in the growth of activities (Geenhuizen and Nijkamp, 1994). This paper describes the results of some first analyses on the spatial and non-spatial dynamics of firm growth in the Kuala Lumpur area. Using disaggregate firm data, including entry date
and location, we analyse the dynamic performance of firms between 1990 and 2007 in this region.
The remaining part of this paper is structured as follows. Section 2 presents the concept of firm demography. Section 3 presents the results of analysis and lastly, section 4 provides some conclusions.
2.
DEMOGRAPHY OF THE FIRM
Demography of firms or firm demography can be defined as the study of demographic events in the firms population in a particular area (Geenhuizen and Nijkamp, 1994). Interest in the firm demography approach can be traced back to the 1970s and this concept been attributed to seminal work by David Birch in his study on ‘job generating processes’ in the USA (Birch, 1979). He advocates that the economic development of a region can be considered as the basic components of development (Van Dijk and Pellenbarg, 2000b). Research on firm demography has caught some interest in industrial organisation (Geroski, 1995; Audretsch et al., 1997; Caves, 1998), organisational sociology (Carroll and Hannan, 2000), regional science (Van Dijk and Pellenbarg, 2000a), economics and economic geography (Van Wissen, 2002) and transportation (Moeckel, 2005).
2.1
Firm Location choice
Many factors influence the location of firms or businesses. Leitham et al. (1999) among others identified business characteristics, the locality and the type of production. Other scholars suggested that firm location choice is based on (1) labour cost and quality; (2) market and transportation access; (3) interest of pro-business community (Dipasqualea and Wheaton, 1996) (4) the economies of scale and the economies of agglomeration (Li, 2007). Although these are not the only factors that influence the location choice, the importance of these factors seems to vary by business sector and city.
Locating firms in the Central Business District (CBD) is important especially for capital city. The CBD is an area that is relatively easy to access and convenient for worker and clients because of its function as a hub for all major modes of private and public transportation. The CBD area also has access to full range of public amenities which includes services, shops, restaurants and entertainment.
Gombak Hulu Langat Petaling Klang Kuala Lumpur B1 LEBUHR AYA KAR AK J A L A N L A N G A T C A D A N G A N L E B U H R A Y A B A R A T L A UT JALAN K UALA SELA NGOR LEBU HRAY A LEM BAH K LANG SEL ATAN JA LAN S UN G AI T UA JALA N KAPAR JALA N HU LU L ANGAT J A L A N M E R U JAL AN AY ER HIT AM J ALA N S G . L A L A N G L E BU H R A Y A KU A L A L UM P U R -P UT R A J A Y A
LEBUHRAYA SHAH ALAM (KESAS)
KAJANG RING ROAD
STAT E ROUTE B 18 JA LAN K E BUN LE BUH RAYA L ING KAR AN T E NG AH (E LIT E ) J AL AN B E NT UN G PUTR AJAY A L INK J A L A N K U C H ING JAL AN C IKU
LEBUHRAYA UTARA SELATAN
JALAN SE MENYIH JALA N PUCHONG JALA N BANG I JALAN AM PANG JALA N RA JA MUD A MUSA JA LAN SU BANG
LEBUHRAYA PERSEKUTUAN
JALAN BUKIT KE MUNI
NG JALAN SUNGAI PULOH
JALA N IP OH JA LAN 2 C JA LAN B AR U B 15 JALA N 6/27 A JA L A N P /1 JALA N BUKIT KA PAR JAL AN 59 JALAN MUSR AN J ALA N P AR A N G JALA N S S 7/2 JALAN DESA JA LAN R AYA D U A JALAN KUARI J A L A N U S J 3 /4 JA L A N 8 /1 5 4 JA L A N S S 1 3 /1 K JALA N 5 JAL AN 1 JALAN UTAS 1 5/7 JA L A N P J U 3 /3 1 JALAN 2/125 JALAN P4/6 JALAN 10 J ALA N P U CH O N G Putrajaya Highway Major Road Klang River
3.
FIRM DYNAMIC ANALYSIS
3.1
Study area
This research focuses on Klang Valley region as its study area (Figure 1). However for this paper, Federal Territory of Kuala Lumpur (FTKL) that is known as Kuala Lumpur was chosen because more detailed data were available. Kuala Lumpur is one of the districts in Klang Valley region. As the capital state of Malaysia, it is recognised as a tourist attraction, and a cultural and economic centre for the country. The area was buoyant by the development of commercial, industrial and residential activities which made Kuala Lumpur and its conurbation grow rapidly compared to other states in Malaysia. With a population of 1.6 million people (Department of Statistics Malaysia, 2008) and an area covering up to 244 sq. km., Kuala Lumpur has a comprehensive road and rail network to help workers, residents and tourists commute especially to the city centre.
3.2
Data sets
This study relies on three sets of data which have been obtained from various sources. These are (1) firm data; (2) Klang Valley’s GIS data; (3) statistics and economic data for Klang Valley and Malaysia. Firm data have been obtained from Company Commission of Malaysia (CCM) which consists of registered companies in Malaysia. Klang Valley’s GIS data was acquired from Klang Valley Federal Territory (KVFT) and consists of data about administrative boundaries, land use, transportation and physical characteristics. Statistics and economic data were obtained from the Department of Statistics Malaysia, Kuala Lumpur City Hall (KLCH) and the Economic Planning Unit (EPU).
3.3
Kuala Lumpur Planning System Growth
Malaysia has formulated a range of policies and plans during its rapid growth from 1971 until now. They consist of core national policies, long term and medium term developments plans, annual and special development plans; and Vision 2020. As the premier city of the nation, Kuala Lumpur contributes strongly to the accomplishment of the ideal embodied within Vision 2020. Kuala Lumpur development planning is coordinated by the KLCH under the responsibility of the Mayor, who is accountable directly to the Prime Minister. By using a series of comprehensive by-laws and regulations, the Mayor has the power to take action wherever needed. Table 1 provides two Planning Acts related to KLCH planning and development.
As the Kuala Lumpur municipal authority, KLCH plays an important role in creating planning strategies to ensure growth in the area in line with Malaysia’s aspirations. The development decisions in Kuala Lumpur are based on the Kuala Lumpur Structure Plan (KLSP), administrative policies issued by the Mayor, internally prepared development plans approved by the Mayor and technical standards set by the various relevant departments of the City Hall (ESCAP, 1999) which differ from other local planning authorities. KLCH has drawn up two KLSP’s as a basic guideline for all future development in Kuala Lumpur until the year 2020, first in 1984 and then in 2004 (Table 1).
Kuala Lumpur’s economy has generated an average Gross Domestic Product (GDP) at purchasers’ value in 1978 of 8.8 per cent per annum from 1991 to 1995 (Prime Minister Department, 1996). The average GDP at purchasers’ value in 1987 has decreased to 4.2 per cent per annum between 1996 and 2000 (Prime Minister Department, 2001) and declined again to 3.8 per cent per annum from 2001 to 2005 (Prime Minister Department, 2006).
However, between 2006 and 2010 it was expected to grow at 6.1 per cent per annum (Prime Minister Department, 2006).
Table 1 - Kuala Lumpur’s Planning Acts and Structure Plans
Year Description Notes 1973 Kuala Lumpur
(Planning) Act, 1973 (Act 107)
Act 107 is provides for a comprehensive development plan system for Kuala Lumpur.
1982 Federal Territory (Planning) Act, 1982 (Act 267)
Act 107 was repealed and replaced by Act 267 to incorporate the Structure Plan System as propagated by the Town and Country Planning Act (172), 1976. 1984 Kuala Lumpur Structure
Plan, 1984 (KLSP, 1984)
KLSP was drawn up by KLCH to provide basic guidelines for all future development in the Federal Territory of Kuala Lumpur until the year 2000. 2004 Kuala Lumpur Structure
Plan, 2020 (KLSP, 2020)
KLSP 1984 need to be revised due to unprecedented economic growth and rapid changes in last 20 years.
3.4
Firm dynamic performance in Kuala Lumpur
This analysis covers firms in the Kuala Lumpur area between 1990 and 2007. Figure 2 shows the dynamic performance of firms operating between 1990 and 2007. In total, there are 57 737 firms including dormant firms in the Kuala Lumpur area. A dormant firm in this study is described as a firm which is not active or out of business. As can be seen in Figure 2, there were three peak years of firm growth: 1995, 2000 and 2004. From year 1995 onwards, the growth of new firms started to decline especially from 1997 to 1999 due to the global financial crisis. Dormant firms have shown a rise and decline similarly to the trends observed for new firm’s birth.
3.5
Firm Performance’s by Sector
The evolution of new firms by sector is described in Figure 3. The Company Commission Malaysia divided the company data into 11 sectors including Dormant firms (sector 1) and firms which are not adequately defined or missing (sector 2).
Figure 3 - Firm Performance by Sector (1990 - 2007)
From the figure, it can be seen that sector 10 (Financing, Insurance, Real Estate, Investment and Business Services) encompasses the largest share of new firms (35.6 per cent) which provided the impetus for economic growth during 1990 to 2007, followed by sector 8 (Wholesale and Retail trade, Restaurant and Hotel) with 31.1 per cent, sector 7 (Construction) with 7.3 per cent, sector 11 (Community, Social and Personal Services) with 6.5 per cent, sector 5 (Manufacturing) with 4.7 per cent, sector 9 (Transportation and Communication) with 4.4 per cent, and sector 3 (Agriculture, Hunting, Forestry and Fishing) with 0.6 per cent.
Sectors 10 and 8 which make up the service sector cover almost 67 per cent of firms, which is more than two-thirds of overall firm births in Kuala Lumpur. The rapid expansion of these sectors was due to the growth of four service industry groups in Malaysia—finance, insurance, real estate and business services; estate and business services; wholesale and retail trade, hotels and restaurant; and transport, storage and communications—which
accounted for more than 60 per cent of all new jobs in Kuala Lumpur (Morshidi, 2000).
Firm births in Sector 4 (Mining and Quarrying) and sector 6 (Electricity, Gas and Water) shows a very modest growth in this period of only 0.3 per cent. Although firm births in sector 5 are small, it is the country’s engine of growth. Other sectors, especially sector 3, remain significant and an important component of the Malaysian economy.
3.6
Firm Location Analysis
To assign firm location to spatial environments, Geocoding tools in ESRI’s ArcGIS software was used. Geocoding developed as an address matching approach in assigning the location to an address by comparing the descriptive aspects to those present in the reference material (ESRI, 2003). By using road data as an address locator, all firms in the Kuala Lumpur area were successfully matched to a location.
3.6.1 Proximity Analysis
The current available infrastructure in Kuala Lumpur ensures that employees can commute to work and companies can distribute their products. The comprehensive road and rail network makes Kuala Lumpur more accessible by reducing commuting times. This should lead to higher economic growth in the country as a whole.
Proximity to highways and major roads appears to be an important determinant of firm location choice in urban economic research (Maohet al., 2005). Simple proximity analysis was performed in this study. Multi-ring buffer tools were used to classify firm locations around five transportation features which are highway network, major road network, rail network, rail station and transportation terminal. The results of the analysis, choosing 100 meter and 500 meter as the buffer, can be seen in Tables 2 and 3.
Table 2 – Distribution of Firms 100 meter and 500 meter from Transportation Features.
Highway Major Road Rail Rail Station Terminal Distance Firm % Firm % Firm % Firm % Firm % 100m 5545 9.6 31459 54.5 4904 8.5 1163 2.0 140 0.2 500m 33122 54.4 50615 87.7 25944 44.9 19428 33.6 2426 0.4
Batu
Petaling Kuala Lumpur Setapak
Bandar Kuala Lumpur Ampang Hulu Kelang Cheras Petaling Jaya Batu Caves Pekan Batu
Bandar Baharu Sungai Besi Sungai Penchala Kepong Kuala Pauh Pekan Petaling Legend Firm 100m Firm 500m Highway Road
Figure 4 – Spatial Distribution of Firms 100 meter and 500 meter from Highways.
Batu
Petaling Kuala Lumpur Setapak
Bandar Kuala Lumpur Ampang Hulu Kelang Cheras Petaling Jaya Batu Caves Pekan Batu
Bandar Baharu Sungai Besi Sungai Penchala Kepong Kuala Pauh Pekan Petaling Legend Firm 100m Firm 500m Major Road Road
Figure 5 - Spatial Distribution of Firms 100 meter and 500 meter from Major Roads. Table 2 shows that most firms in Kuala Lumpur are located within a range of 500 meter from the major road (87.7 per cent). This is probably because the major road network in Kuala Lumpur is easy to access and was gazetted as a commercial area zone in the KLSP. The proximity of firms to the Terminals is slightly less because only four major bus terminal are located in Kuala Lumpur area. As shown in Table 3, differences between sectors are small. Figures 4 to 7 show the spatial distribution of firms.
Table 3 - Percentage of Firms by sector - 100 meter and 500 meter from Transportation Features
Highway Major Road Rail Rail Station Terminal Sector 100m 500m 100m 500m 100m 500m 100m 500m 100m 500m 1 7.7 7.5 8.7 8.2 10.1 9.1 10.9 9.2 5.0 10.3 2 1.2 0.8 1.2 1.2 1.4 1.3 1.9 1.3 0.7 1.5 3 0.6 0.6 0.6 0.6 0.6 0.5 0.9 0.5 0.7 0.4 4 0.3 0.3 0.3 0.3 0.2 0.3 0.4 0.3 0.7 0.6 5 4.7 5.4 4.3 4.6 4.4 4.6 4.8 4.5 2.1 3.9 6 0.3 0.2 0.3 0.3 0.4 0.3 0.6 0.3 0.0 0.5 7 7.3 6.8 6.9 7.2 5.9 6.4 5.1 6.3 6.4 6.4 8 31.2 32.5 30.9 31.1 32.1 30.7 28.2 31.3 35.0 30.5 9 4.4 4.8 4.4 4.4 4.3 4.6 4.6 4.6 6.4 5.1 10 35.9 34.7 36.0 35.6 34.5 35.9 37.5 35.6 33.6 33.3 11 6.4 6.6 6.3 6.5 6.1 6.3 5.1 6.2 9.3 7.6
Batu
Petaling Kuala Lumpur Setapak
Bandar Kuala Lumpur Ampang Hulu Kelang Cheras Petaling Jaya Batu Caves Pekan Batu
Bandar Baharu Sungai Besi Sungai Penchala Kepong Kuala Pauh Pekan Petaling Legend Firm 100m Firm 500m Rail Road
Figure 6 - Spatial Distribution of Firms 100 meter and 500 meter from Rail Networks.
Batu
Petaling Kuala Lumpur Setapak
Bandar Kuala Lumpur Ampang Hulu Kelang Cheras Petaling Jaya Batu Caves Pekan Batu
Bandar Baharu Sungai Besi Sungai Penchala Kepong Kuala Pauh Pekan Petaling Legend ! . Firm 100m - Station Firm 500m - Station ! . Firm 100m - Terminal Firm 500m - Terminal n ¤Rail Stesen n £Terminal Road
Figure 7 - Spatial Distribution of Firms 100 meter and 500 meter from Rail Stations and
Terminals.
3.6.2 Area Analysis
The Central Business District (CDB) is the strategic zone in Kuala Lumpur (Figure 8). It covers of 18.13 sq. km. bounded by major highways namely Jalan Tun Razak from the east to the north, Mahameru Highway to the west and the Middle Ring Road One to the south (Kuala Lumpur City Hall, 2004).
Based on the analysis, 38.2 per cent of the firms in Kuala Lumpur are located in the CBD area. As shown in Figure 9, most entering firms in the CBD area are in sector 10 (share of 37 per cent), followed by sector 8 with 29.9 per cent. Figure 10 shows the spatial distribution of firms in the CBD area.
Figure 8 – Firm Location in the CBD area n £ n £ n £ n £ K LE E PANDAN CO RR LEBU HR AYA SPE CTRA JALAN K UCHING JALAN IPOH JA LA N PUD U JALAN TUN R AZAK JALAN LO KE JALAN SULT AN ISM AIL LEB U HR AYA MAHA MERU JALAN I MBI JALAN AMPAN G JALA N R A JA L A U T JALA N YE W JALAN DAMANSARA JALA N SE MAR A
JALAN RAJA CHULAN JALAN PARLIMEN JA LA N IST ANA JALAN SYED PUT RA JALAN CHER AS JALA N TU N SA MBAN THAN JALA N P. RAML EE
JALAN RAJA MUDA ABDUL AZIZ
JALA N T UAN KU A BD U L R AH MA N JALA N SU NGAI BES I
JALAN BUKIT BINTANG
JALA N K LANG LAMA JALAN TU N PER AK JALAN GURNEY J ALAN D UTA JALAN PUTRA JALAN TRA VERS JALA N HA NG TUA H JALA N YA P KWA N SEN G JALAN M AHA RAJALELA JALA N R A JA JALA N MA HAME RU JALAN GERE JA Legend Firm Highway Major Road Rail n ¤Rail Stesen n £Terminal CBD Area LAND USE TYPE
Industrial Instituation Road Open Space and Recreational Area Brown Area Religious Residential Education Commercial Cemetary Rail Reserve River Reserve Electricity Line Reserve Parking Area Terminal Utility
Figure 10 – Spatial Distribution of firms by sector in the CBD area. _ _ _ _ _D _ _ _ _ _ _D _ _DD _ _D _ _ _ _!D _! _ _ _ _ _ _! _ _ _ _ _ _ _ _ _ _ _ _ _! _! _ _ _ _ _ _ _ _ _ _ _ D _ _ ______________________________________________________________________________________!D!DDD!DDDDDDDDDDDD!DD__D _DD _ _ _ ______D_________________!! _ ___ _ _ _D _ _ _ _ _ _ _ _ _____D _________________DDDD! _D _D _D _ _ _ _ _ _ _ _ _ _D _ _ _ ________________!D!!DD!DDD __D___D _ _ ! ________D _ _ _D _ _ _D _ _D _D _ _ _ _ _ _DDDD _ _DD _ _ _ _ _ _ _ _ ___! __ _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________D!DDDDD!!D!D!D!D!D!!DDD!DDDDDDDD!DDD!DD!DD!! _ _ _ _ _ _ _ _ _D _ _ _ _ _ _ _ _ ____________________DDD __ ____! _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ ______DD ____D____!______________________________________________________________________________D!!DDDDD!DD ________________________________________________________________________D!!!DDDD!DDDDDD!DD! ____D__ _D _ _ _ _____D D _ _ _ _ _ _ _________________D! __ ______________D_ _ __________________DDDD!D_____!DDD_________DD!___________DDD______D _D _____________!!D __ _ _________________________________________D________________DDDD!DDDD ________________________________________________________________________________________________________________________________________________DDDDD!DD!!!!!DD!D!DDDD ____D _ _ _D _ _ _ _ _ _ _! _ _ _ _ _ _ _ _ _ _ _ _ _ _D _ _ _ _D _ _D _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _D _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _D _ _ _ _ _DDDD _DDDDDD _ _ _ _ _ _ _D _ _ _ _ _ _ _ _ _ _ _! _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ______________DD!! ___ _ ___________________________________________________________________!!!!!DDDDD_D _ D _ _ _ _! _ _ _ _ _ _D _ _ _ _ _ _ _ _ _ _ _ _D _ _ _ _ _ _ _ _ _ _ _ _ _ _! _ _ _ _ _ _ _ _ _! _ _ _ _! _! _ _ __________!D ___ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________D!DD!!!DDD!DDDD!!!DDDDDDDDDDDDD!DDD!!DD!DD!DDD!!!D!DDDDD!D!DDDDDDDD ______________________________________DDD _ _ _ _ _ _ _ _ ____! _________________________________________________________DDDDDDDDDDDD!! _ _ _ _ _ _ _ _ _ _ _ _ _ _ _________D ______ _______ _ D ______________D!D _ _ _ _ _ _ _ _ _ _ _DD _ _ _ _ _ _ _ _ _ __________! _ _______________!DDD!!!_D ! _ _ _ _ _DDDD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _D _D _ _ _D _ _ _DD _ _ _ _ _! _! _! _ _________DD _ _____________________ ! _D _D _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _!! _ _D _ _ _ _ _ _ _ _ _ _ _ _ _ _DD _ _ _ _ _ _ _ _ _D _DDDD _ _ _! _ _ _DD _ _ _ _D _D _ _DD _ _ _ _ _ _ _ _ _ _DD _ _ _ _ _ _ _ _ _ _ _ _! _ _ _ _ _ _ _ _ _ _ _ _! _ _ _ _ _ _ _ _ _ _! _ _ _ _ _ _ _! _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _! _ _! _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _D _ _ _D _ _ _ _ _ _D _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ !_ _D _ _ _ _ _ Legend CBD Area Road Rail Firm - Sector _1 D2 ! 3 4 5 6 7 8 9 10 11
Figure 11 – Firm Performance for Sector 10 in the CBD area (1990-2007)
Considering the development of sector 10 that has the most new firms’ entry in the CBD area, the performance of the sector is examined more closely. As shown in Figure 11, there are rise and decline of new firms in the CBD area within 1990 to 2007. These are quite similar with Kuala Lumpur overall firm performance as explained in the earlier part of this paper.
Taking a closer breakdown of the sector share, Figure 12 shows the decomposition of firms in sector 10. Most entering firms in sector 10 relate to Real Estate (47.2 per cent), followed by Investment (39.4 per cent), Other Business Services (5.2 per cent), Business Services (3.8 per cent), Financial (2.6 per cent), Insurance (1.4 per cent) and General Maintenance (0.4 per cent). The growing real estate sector is due to the stability of the economy, the development of high quality projects and growing interests in Malaysia as a regional centre for multinationals.
4.
CONCLUSIONS
This paper has examined some firm dynamics in the Kuala Lumpur area between 1990 and 2007. The results of a firm demographic analysis, using GIs tools, show that Financing, Insurance, Real Estate, Investment and Business Services sector play an essential role in the economic growth for Kuala Lumpur area. The importance of transportation links in the way of road networks and rail connections influence the decision of locating new firms. The analysis also shows that most of firms are located close to transportation features.
In general this paper presented progress made in the development of multi-agent model of urban dynamics in the context of economic growth. In the early stage of development, we consider of the firm demography approach as part of the model to be developed. A basic problem in firm
demographic research is the lack of data (Van Dijk and Pellenbarg, 2000c). For this study, partial data is available such as date of start-up, firm address, firm status and type of firm but no information is available about migration, closure date or employment status. Thus, model opportunities are limited to data availability.
This paper does not yet present details of a more complex analysis and specific model. The next step will focus on the design of the model and on the preparation of the data for more detailed analysis and simulation.
5.
ACKNOWLEDGMENT
The authors would like to thank the Klang Valley Federal Territory, Universiti Teknologi Malaysia and Department of Statistics Malaysia for their permission to use the data for this research paper.
6.
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