Determinants of international production fragmentation

Malaysia's experience in the information, communications and telecommunications (ICT) industry

Research output: Contribution to journalArticle

Abstract

Although Malaysia has been an integral part of the international production fragmentation network since 1970, empirical investigations on the factors that determine the expansion of these networks are sparse. The paper examines the aforementioned empirical gap in the case of the Malaysian information, communications and telecommunications (ICT) sector using trade patterns in parts and components (PNC). Panel-data estimation from 1990 to 2008 suggests that mobile factors such as relative labor costs and productivity, foreign capital, agglomeration effect, infrastructure development and industrial policies are important in facilitating the international production fragmentation development. Income and domestic prices effect however, are conditional to trade flows.

Original languageEnglish
Article number1550042
JournalSingapore Economic Review
Volume60
Issue number5
DOIs
Publication statusPublished - 1 Dec 2015

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Factors
Communication
Production fragmentation
Telecommunications industry
Malaysia
Income
Industrial policy
Price effects
Trade patterns
Labour costs
Trade flows
Development policy
Foreign capital
Panel data estimation
Agglomeration
Labour productivity
Telecommunications
Infrastructure development
Integral
Empirical investigation

Keywords

  • final goods
  • global production network
  • ICT
  • International production fragmentation
  • international production sharing
  • international trade
  • Malaysia
  • parts and components

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

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