Export expansion an production sharing in Malaysian manufacturing

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 inter...

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Main Authors: Choong, Pai Wei *, Noor Aini, K.
Format: Article
Published: School of Business & Economics, Universiti Putra Malaysia 2019
Online Access:http://eprints.sunway.edu.my/1451/
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author Choong, Pai Wei *
Noor Aini, K.
author_facet Choong, Pai Wei *
Noor Aini, K.
author_sort Choong, Pai Wei *
building SU Institutional Repository
collection Online Access
description 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.
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spelling sunway-14512020-10-08T01:11:32Z http://eprints.sunway.edu.my/1451/ Export expansion an production sharing in Malaysian manufacturing Choong, Pai Wei * Noor Aini, K. 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. School of Business & Economics, Universiti Putra Malaysia 2019-02-24 Article PeerReviewed 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 http://www.ijem.upm.edu.my/vol13no1.htm
spellingShingle Choong, Pai Wei *
Noor Aini, K.
Export expansion an production sharing in Malaysian manufacturing
title Export expansion an production sharing in Malaysian manufacturing
title_full Export expansion an production sharing in Malaysian manufacturing
title_fullStr Export expansion an production sharing in Malaysian manufacturing
title_full_unstemmed Export expansion an production sharing in Malaysian manufacturing
title_short Export expansion an production sharing in Malaysian manufacturing
title_sort export expansion an production sharing in malaysian manufacturing
url http://eprints.sunway.edu.my/1451/
http://eprints.sunway.edu.my/1451/