Export expansion an production sharing in Malaysian manufacturing

Choong, Pai Wei * and Noor Aini, K. (2019) Export expansion an production sharing in Malaysian manufacturing. International Journal of Economics & Management, 13 (1). pp. 37-49. ISSN 2600-9390

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Official URL: http://www.ijem.upm.edu.my/vol13no1.htm

Abstract

The rapid expansion of Malaysia’s non-resource-based manufactured exports is closely related to its participation in international production networks that are largely mediated by multinational enterprises. This study examines the extent of the Malaysian manufacturing industry participating in international production sharing and the role of intermediate imports in production sharing exports. Intermediate imports are embedded in a standard gravity equation model of bilateral exports as essential complementary inputs for international production sharing. The data is based on OECD STAN database and models estimated using dynamic panel system generalized method of moment technique to account for the dynamic process of bilateral exports and endogeneity issues. The findings show evidence of non-resource-based industry’s participation in international production sharing as supported by the positive and significant impact of intermediate imports. Malaysia’s resource-based industry involves bilateral exports based on the Heckscher-Ohlin model as evidenced by the positive and significant impact of differences in relative per capita income between countries.

Item Type: Article
Uncontrolled Keywords: Dynamic panel data; export expansion; gravity model; Mmanufacturing; vertical specialization
Divisions: Others > Non Sunway Academics
Sunway University > Sunway University Business School > Dept. Economics & Finance
Depositing User: Dr Janaki Sinnasamy
Related URLs:
Date Deposited: 01 Oct 2020 08:31
Last Modified: 08 Oct 2020 01:11
URI: http://eprints.sunway.edu.my/id/eprint/1451

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