Export expansion and production sharing in Malaysian manufacturing

Pai Wei Choong, Noor Aini Khalifah

Research output: Contribution to journalArticle

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.

Original languageEnglish
Pages (from-to)37-49
Number of pages13
JournalInternational Journal of Economics and Management
Volume13
Issue number1
Publication statusPublished - 1 Jun 2019

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Manufacturing
Bilateral
Import
Participation
Malaysia
Industry
Data base
Generalized method of moments
Resource-based
Gravity equation
Dynamic process
Heckscher-Ohlin model
Endogeneity
Production networks
Per capita income
Multinational enterprises
Manufacturing industries
Dynamic panel

Keywords

  • Dynamic panel data
  • Export expansion
  • Gravity model
  • Manufacturing
  • Vertical specialization

ASJC Scopus subject areas

  • Business and International Management
  • Economics, Econometrics and Finance(all)
  • Strategy and Management

Cite this

Export expansion and production sharing in Malaysian manufacturing. / Choong, Pai Wei; Khalifah, Noor Aini.

In: International Journal of Economics and Management, Vol. 13, No. 1, 01.06.2019, p. 37-49.

Research output: Contribution to journalArticle

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