Leveraging trade opportunities with non-traditional partners: the Malaysia–GCC perspective

This paper examines the impact of economic factors on bilateral trade flows between Malaysia and the GCC through estimations of panel data using a gravity model. In particular, the paper compares the determinants of bilateral trade and trade potentials between Malaysia and two regions, the non-tradi...

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Main Authors: Devadason, Evelyn Shyamala, Baharumshah, Ahmad Zubaidi, Subramaniam, Thirunaukarasu
Format: Article
Language:English
Published: Routledge 2014
Online Access:http://psasir.upm.edu.my/id/eprint/34374/
http://psasir.upm.edu.my/id/eprint/34374/1/Leveraging%20trade%20opportunities%20with%20non-traditional%20partners%20the%20Malaysia%E2%80%93GCC%20perspective.pdf
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author Devadason, Evelyn Shyamala
Baharumshah, Ahmad Zubaidi
Subramaniam, Thirunaukarasu
author_facet Devadason, Evelyn Shyamala
Baharumshah, Ahmad Zubaidi
Subramaniam, Thirunaukarasu
author_sort Devadason, Evelyn Shyamala
building UPM Institutional Repository
collection Online Access
description This paper examines the impact of economic factors on bilateral trade flows between Malaysia and the GCC through estimations of panel data using a gravity model. In particular, the paper compares the determinants of bilateral trade and trade potentials between Malaysia and two regions, the non-traditional Gulf alliance and the traditional ASEAN counterpart, to provide insights for leveraging opportunities through trade with the former. The gravity estimates imply the importance of size effects, similarities in GDP and differences in factor endowments as drivers of trade flows between Malaysia and the GCC, underlying the fact that inter-industry trade dominates these flows. The opposite holds in the case for the Malaysia–ASEAN trade. Though export potentials for industrial products per se appear exhausted in trade with both regions, the Gulf region provides opportunities for Malaysia to export quantity-based final (end-use) products and to diversify its exporting strategy away from quality-based parts and components.
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institution Universiti Putra Malaysia
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language English
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publishDate 2014
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spelling upm-343742016-08-19T08:30:38Z http://psasir.upm.edu.my/id/eprint/34374/ Leveraging trade opportunities with non-traditional partners: the Malaysia–GCC perspective Devadason, Evelyn Shyamala Baharumshah, Ahmad Zubaidi Subramaniam, Thirunaukarasu This paper examines the impact of economic factors on bilateral trade flows between Malaysia and the GCC through estimations of panel data using a gravity model. In particular, the paper compares the determinants of bilateral trade and trade potentials between Malaysia and two regions, the non-traditional Gulf alliance and the traditional ASEAN counterpart, to provide insights for leveraging opportunities through trade with the former. The gravity estimates imply the importance of size effects, similarities in GDP and differences in factor endowments as drivers of trade flows between Malaysia and the GCC, underlying the fact that inter-industry trade dominates these flows. The opposite holds in the case for the Malaysia–ASEAN trade. Though export potentials for industrial products per se appear exhausted in trade with both regions, the Gulf region provides opportunities for Malaysia to export quantity-based final (end-use) products and to diversify its exporting strategy away from quality-based parts and components. Routledge 2014 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/34374/1/Leveraging%20trade%20opportunities%20with%20non-traditional%20partners%20the%20Malaysia%E2%80%93GCC%20perspective.pdf Devadason, Evelyn Shyamala and Baharumshah, Ahmad Zubaidi and Subramaniam, Thirunaukarasu (2014) Leveraging trade opportunities with non-traditional partners: the Malaysia–GCC perspective. The Pacific Review, 27 (1). pp. 97-122. ISSN 0951-2748; ESSN: 1470-1332 http://www.tandfonline.com/doi/abs/10.1080/09512748.2013.848377 10.1080/09512748.2013.848377
spellingShingle Devadason, Evelyn Shyamala
Baharumshah, Ahmad Zubaidi
Subramaniam, Thirunaukarasu
Leveraging trade opportunities with non-traditional partners: the Malaysia–GCC perspective
title Leveraging trade opportunities with non-traditional partners: the Malaysia–GCC perspective
title_full Leveraging trade opportunities with non-traditional partners: the Malaysia–GCC perspective
title_fullStr Leveraging trade opportunities with non-traditional partners: the Malaysia–GCC perspective
title_full_unstemmed Leveraging trade opportunities with non-traditional partners: the Malaysia–GCC perspective
title_short Leveraging trade opportunities with non-traditional partners: the Malaysia–GCC perspective
title_sort leveraging trade opportunities with non-traditional partners: the malaysia–gcc perspective
url http://psasir.upm.edu.my/id/eprint/34374/
http://psasir.upm.edu.my/id/eprint/34374/
http://psasir.upm.edu.my/id/eprint/34374/
http://psasir.upm.edu.my/id/eprint/34374/1/Leveraging%20trade%20opportunities%20with%20non-traditional%20partners%20the%20Malaysia%E2%80%93GCC%20perspective.pdf