Export determinants and its long-run relationship of Malaysia's major export sectors

Many empirical studies have tried to establish the causal link between export expansion and economic growth, due to the view that structural changes in a nation will alter the sources of growth, which in turn will affect the export-oriented strategy that can be used. The main purpose of this stud...

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Main Author:	Lee, Pit Yean
Format:	Thesis
Language:	English
Published:	2005
Subjects:	Exports - Malaysia Agricultural industries - Malaysia Manufacturing industries - Malaysia
Online Access:	http://psasir.upm.edu.my/id/eprint/85023/1/FEP%202005%2015%20ir.pdf
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id	my-upm-ir.85023
record_format	uketd_dc
spelling	my-upm-ir.850232021-12-31T02:22:50Z Export determinants and its long-run relationship of Malaysia's major export sectors 2005-11 Lee, Pit Yean Many empirical studies have tried to establish the causal link between export expansion and economic growth, due to the view that structural changes in a nation will alter the sources of growth, which in turn will affect the export-oriented strategy that can be used. The main purpose of this study is to explore the long run convergence of Malaysia's three main export sectors; namely agriculture, manufacturing and services sector, and the determinants of export expansion, by using the cointegration framework. Using annual data for 1960-2002, this paper explores a model in which growth of exports is determined by a combination of human capital, research and development adoption, labor productivity, labor wage rate, real effective exchange rate, imports of capital and intermediate goods as well as gross domestic product or GDP. The results show that the growth of exports of each sector and their respective export determinants were cointegrated, implying that there exists a steady-state relationship between the series. The results of the vector error-correction model or VECM also indicate that in the long run, the hypothesis that GDP-driven exports and imports Granger-causes growth of exports cannot be rejected at the 5% significance level, as for the case of agriculture and manufacturing sector. For the services sector, the hypothesis that productivity-led export and human capital Granger-cause services export also cannot be rejected, indicating a long run relationship between growth of exports and labor productivity as well as development of human capital. The weakening support for export-led growth after Malaysia shifted to an export-oriented development strategy is associated with structural changes associated with industrialization. Exports - Malaysia Agricultural industries - Malaysia Manufacturing industries - Malaysia 2005-11 Thesis http://psasir.upm.edu.my/id/eprint/85023/ http://psasir.upm.edu.my/id/eprint/85023/1/FEP%202005%2015%20ir.pdf text en public masters Universiti Putra Malaysia Exports - Malaysia Agricultural industries - Malaysia Manufacturing industries - Malaysia Abdul Rahim, Khalid
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
advisor	Abdul Rahim, Khalid
topic	Exports - Malaysia Agricultural industries - Malaysia Manufacturing industries - Malaysia
spellingShingle	Exports - Malaysia Agricultural industries - Malaysia Manufacturing industries - Malaysia Lee, Pit Yean Export determinants and its long-run relationship of Malaysia's major export sectors
description	Many empirical studies have tried to establish the causal link between export expansion and economic growth, due to the view that structural changes in a nation will alter the sources of growth, which in turn will affect the export-oriented strategy that can be used. The main purpose of this study is to explore the long run convergence of Malaysia's three main export sectors; namely agriculture, manufacturing and services sector, and the determinants of export expansion, by using the cointegration framework. Using annual data for 1960-2002, this paper explores a model in which growth of exports is determined by a combination of human capital, research and development adoption, labor productivity, labor wage rate, real effective exchange rate, imports of capital and intermediate goods as well as gross domestic product or GDP. The results show that the growth of exports of each sector and their respective export determinants were cointegrated, implying that there exists a steady-state relationship between the series. The results of the vector error-correction model or VECM also indicate that in the long run, the hypothesis that GDP-driven exports and imports Granger-causes growth of exports cannot be rejected at the 5% significance level, as for the case of agriculture and manufacturing sector. For the services sector, the hypothesis that productivity-led export and human capital Granger-cause services export also cannot be rejected, indicating a long run relationship between growth of exports and labor productivity as well as development of human capital. The weakening support for export-led growth after Malaysia shifted to an export-oriented development strategy is associated with structural changes associated with industrialization.
format	Thesis
qualification_level	Master's degree
author	Lee, Pit Yean
author_facet	Lee, Pit Yean
author_sort	Lee, Pit Yean
title	Export determinants and its long-run relationship of Malaysia's major export sectors
title_short	Export determinants and its long-run relationship of Malaysia's major export sectors
title_full	Export determinants and its long-run relationship of Malaysia's major export sectors
title_fullStr	Export determinants and its long-run relationship of Malaysia's major export sectors
title_full_unstemmed	Export determinants and its long-run relationship of Malaysia's major export sectors
title_sort	export determinants and its long-run relationship of malaysia's major export sectors
granting_institution	Universiti Putra Malaysia
publishDate	2005
url	http://psasir.upm.edu.my/id/eprint/85023/1/FEP%202005%2015%20ir.pdf
_version_	1747813514009903104

Export determinants and its long-run relationship of Malaysia's major export sectors

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