High technology trade and the roles of absorptive capabilities in Malaysia
This article analyses the importance of high-technology trade as a channel of economic growth to ease Malaysia out of the middle-income trap. This study also wonders upon the missing absorptive capabilities that validate the likelihoods of dismal gross domestic product (GDP) growth since the 1990s....
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Published: |
SAGE Publications
2023
|
| Online Access: | http://psasir.upm.edu.my/id/eprint/108183/ |
| _version_ | 1848865095153614848 |
|---|---|
| author | Fong, Leonard Litt Lam Siong, Hook Law Azman-Saini, W. N. W. Ismail, Normaz Wana |
| author_facet | Fong, Leonard Litt Lam Siong, Hook Law Azman-Saini, W. N. W. Ismail, Normaz Wana |
| author_sort | Fong, Leonard Litt Lam |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This article analyses the importance of high-technology trade as a channel of economic growth to ease Malaysia out of the middle-income trap. This study also wonders upon the missing absorptive capabilities that validate the likelihoods of dismal gross domestic product (GDP) growth since the 1990s. Using the autoregressive distributed lag (ARDL) approach and fully modified ordinary least squares (FMOLS) estimator as robustness checks, this study identifies the determinants of high-technology trade and the appropriate absorptive capability in enhancing economic growth. The empirical results from quarterly data from 1990 to 2015 proved that foreign direct investment, financial development and infrastructure are vital to develop a successful high-technology trade. Another important finding is that it validates the presence of trade openness (as absorptive capability) in order to magnify the benefits of research and development (R&D). This explains why, despite spending on R&D, these spending do not project to economic growth. |
| first_indexed | 2025-11-15T13:59:15Z |
| format | Article |
| id | upm-108183 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-15T13:59:15Z |
| publishDate | 2023 |
| publisher | SAGE Publications |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1081832024-09-23T02:06:50Z http://psasir.upm.edu.my/id/eprint/108183/ High technology trade and the roles of absorptive capabilities in Malaysia Fong, Leonard Litt Lam Siong, Hook Law Azman-Saini, W. N. W. Ismail, Normaz Wana This article analyses the importance of high-technology trade as a channel of economic growth to ease Malaysia out of the middle-income trap. This study also wonders upon the missing absorptive capabilities that validate the likelihoods of dismal gross domestic product (GDP) growth since the 1990s. Using the autoregressive distributed lag (ARDL) approach and fully modified ordinary least squares (FMOLS) estimator as robustness checks, this study identifies the determinants of high-technology trade and the appropriate absorptive capability in enhancing economic growth. The empirical results from quarterly data from 1990 to 2015 proved that foreign direct investment, financial development and infrastructure are vital to develop a successful high-technology trade. Another important finding is that it validates the presence of trade openness (as absorptive capability) in order to magnify the benefits of research and development (R&D). This explains why, despite spending on R&D, these spending do not project to economic growth. SAGE Publications 2023 Article PeerReviewed Fong, Leonard Litt Lam and Siong, Hook Law and Azman-Saini, W. N. W. and Ismail, Normaz Wana (2023) High technology trade and the roles of absorptive capabilities in Malaysia. Millennial Asia, 14 (3). pp. 315-340. ISSN 0976-3996; ESSN: 2321-7081 https://journals.sagepub.com/doi/10.1177/09763996211065565 10.1177/09763996211065565 |
| spellingShingle | Fong, Leonard Litt Lam Siong, Hook Law Azman-Saini, W. N. W. Ismail, Normaz Wana High technology trade and the roles of absorptive capabilities in Malaysia |
| title | High technology trade and the roles of absorptive capabilities in Malaysia |
| title_full | High technology trade and the roles of absorptive capabilities in Malaysia |
| title_fullStr | High technology trade and the roles of absorptive capabilities in Malaysia |
| title_full_unstemmed | High technology trade and the roles of absorptive capabilities in Malaysia |
| title_short | High technology trade and the roles of absorptive capabilities in Malaysia |
| title_sort | high technology trade and the roles of absorptive capabilities in malaysia |
| url | http://psasir.upm.edu.my/id/eprint/108183/ http://psasir.upm.edu.my/id/eprint/108183/ http://psasir.upm.edu.my/id/eprint/108183/ |