Revealed comparative advantage of Malaysian exports: the case for changing export composition

Since 2000, Malaysian-manufactured exports performance has been declining. The downturn of the global electronic industry and the rise of China’s economy are the two major causes of this decline. To improve export performance, Malaysia participates in multilateral, regional, and bilateral trade libe...

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Main Authors: Abidin, Mahani Zainal, Loke, Wai Heng
Format: Article
Published: Massachusetts Institute of Technology Press (MIT Press) 2008
Online Access:https://eprints.nottingham.ac.uk/50214/
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author Abidin, Mahani Zainal
Loke, Wai Heng
author_facet Abidin, Mahani Zainal
Loke, Wai Heng
author_sort Abidin, Mahani Zainal
building Nottingham Research Data Repository
collection Online Access
description Since 2000, Malaysian-manufactured exports performance has been declining. The downturn of the global electronic industry and the rise of China’s economy are the two major causes of this decline. To improve export performance, Malaysia participates in multilateral, regional, and bilateral trade liberalization. The compet- itiveness of Malaysian manufactured exports can be improved by examining the pattern of revealed comparative advantage (RCA). Within the non-resource-based manufactured exports, Malaysia still has comparative advantage for electrical and electronic goods and machinery (its largest export item), even though it has been on a decline. Malaysia’s export strength has also gradually shifted from non-resource-based to resource-based manufactured ex- ports. The RCA estimates also suggest that trade liberalization must not only lower or eliminate tariffs on final products, but also reduce import duties if exports were to increase their competi- tiveness.
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publisher Massachusetts Institute of Technology Press (MIT Press)
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spelling nottingham-502142025-09-10T12:47:00Z https://eprints.nottingham.ac.uk/50214/ Revealed comparative advantage of Malaysian exports: the case for changing export composition Abidin, Mahani Zainal Loke, Wai Heng Since 2000, Malaysian-manufactured exports performance has been declining. The downturn of the global electronic industry and the rise of China’s economy are the two major causes of this decline. To improve export performance, Malaysia participates in multilateral, regional, and bilateral trade liberalization. The compet- itiveness of Malaysian manufactured exports can be improved by examining the pattern of revealed comparative advantage (RCA). Within the non-resource-based manufactured exports, Malaysia still has comparative advantage for electrical and electronic goods and machinery (its largest export item), even though it has been on a decline. Malaysia’s export strength has also gradually shifted from non-resource-based to resource-based manufactured ex- ports. The RCA estimates also suggest that trade liberalization must not only lower or eliminate tariffs on final products, but also reduce import duties if exports were to increase their competi- tiveness. Massachusetts Institute of Technology Press (MIT Press) 2008-10-08 Article PeerReviewed Abidin, Mahani Zainal and Loke, Wai Heng (2008) Revealed comparative advantage of Malaysian exports: the case for changing export composition. Asian Economic Papers, 7 (3). pp. 130-147. ISSN 1536-0083 https://www.mitpressjournals.org/doi/10.1162/asep.2008.7.3.130 doi:10.1162/asep.2008.7.3.130 doi:10.1162/asep.2008.7.3.130
spellingShingle Abidin, Mahani Zainal
Loke, Wai Heng
Revealed comparative advantage of Malaysian exports: the case for changing export composition
title Revealed comparative advantage of Malaysian exports: the case for changing export composition
title_full Revealed comparative advantage of Malaysian exports: the case for changing export composition
title_fullStr Revealed comparative advantage of Malaysian exports: the case for changing export composition
title_full_unstemmed Revealed comparative advantage of Malaysian exports: the case for changing export composition
title_short Revealed comparative advantage of Malaysian exports: the case for changing export composition
title_sort revealed comparative advantage of malaysian exports: the case for changing export composition
url https://eprints.nottingham.ac.uk/50214/
https://eprints.nottingham.ac.uk/50214/
https://eprints.nottingham.ac.uk/50214/