Is Malaysia Facing Negative Deindustrialization

Datos Bibliográficos

ID2886154
AutoresRajah Rasiah (0000-0002-6654-3011, University of Malaya, autor de correspondencia)
Año2011
Volumen84
Número4
Páginas714-735
Fecha de publicación2011-12-01
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaPacific Affairs (JOURNAL)
Identificadores de la revistaISSN: 0030-851X • E-ISSN: 1715-3379
EditorialPacific Affairs (PUBLISHER)
DOI10.5509/2011844715
OpenAlexW1987307063
IdiomaEN
Citas recibidas18

This paper seeks to examine whether Malaysia is facing negative de-industrialization by examining value-added, trade, and productivity trends over the period 1990-2005. The evidence produced in the paper is concrete enough to confirm that Malaysia is facing negative de-industrialization. While it is typical, as part of the process of structural change, to see a rise and fall in the share occupied by manufacturing in the GDP, the evidence shows that Malaysia is indeed facing premature de-industrialization, with a trend slowdown in manufacturing value-added, trade performance, and productivity since 2000. Not only has the trade performance of manufacturing been falling, manufacturing labor productivity has also slowed down; with the key sectors, such as electric-electronics, textiles, and transport equipment; showing either negative or low productivity growth since 2000. Malaysian industrial policies have been fairly successful in connecting with the global value chains of multinationals and in developing resource-based industries, but have not achieved the same success in stimulating their transformation to high value-added activities. The lack of effective institutional change, partly explained by ethnic policies, is advanced as the prime reason for the setting in of negative de-industrialization in Malaysia

Business · Economic growth · Economics · Industrial policy · Industrialisation · International trade · Manufacturing · Market economy · Productivity · Value (mathematics · Global trade and economics