Manufacturing sector development and it's export growth
Malaysia has transformed from commodity based economy to a manufacturing based economy for the past two decades. The good performance of manufacturing sector had lead Malaysia penetrate > international market and changed its strategy to export promotion. Manufacturing sector in Malaysian achie...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
2000
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/85017/1/FEP%202000%2012%20IR.pdf |
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| Summary: | Malaysia has transformed from commodity based economy to a manufacturing based
economy for the past two decades. The good performance of manufacturing sector had
lead Malaysia penetrate > international market and changed its strategy to export
promotion. Manufacturing sector in Malaysian achieved the most rapid economic growth
in the past few years. Nevertheless, there are still some 'bottle necks' in achieving
extensive export growth in international market.
This study whenever possible takes the effort to capture the ideas of major factors that
exhilarating and demoting export growth in Malaysian Manufacturing sector. About
seven internal and external variables are identified for the purpose of this study. They
are Foreign Direct Investment (FDI), Exchange Rate (ER), Tariff (TP), Productivity
level (P), Wage Rate (WR), Economic Growth (EO) and Export Price (EP). The primary mission of this study is to analyze the relative importance of factors that
significantly contributed to manufacturing goods export growth in Malaysia. The
objective of the study is achieved by estimation of Vector Error-Correction Model
(VECM). The data for the study consists of quarterly observations from 1980: 1 to
2000:1.
The result shows that, there are direct and indirect causality linkages among the
variables in determining the export growth. Both the external and internal factors are
equally important in construction the export growth in Malaysia. In general the findings
shows that external factors are relatively play an important role in explaining the growth
of manufacturing export goods in international market. The external shocks are predicted
to effect the manufacturing export extremely. On the other side, the internal factors also
influencing export due to the chain reaction that brought by the external factors. |
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