Malaysian Economic Development: Looking Backwards and Forward
AbstractThis paper provides an analytical and forward-looking overview of Malaysian economic development. Looking back over its 53 years of Independence, we identify the key stylized facts to include the country's generally rapid economic growth and structural change; its consistent openness, especially for merchandize trade and foreign direct investment; its creditable record of macroeconomic management; its consistently high inequality, in spite of the developing world's most consistently implemented affirmative action program; and its mixed record with regard to institutional development. Looking forward, the government has identified the country's key development challenge as graduating to developed country status from its current upper middle income developing country ranking. Can Malaysia make this transition? Growth rates and especially investment levels have fallen substantially since the Asian financial crisis. We identify three key, interrelated challenges, which will be key determinants of its upgrading efforts: fiscal policy reform; the development of institutions and incentives that underpin more rapid innovation and technological progress; and a complete overhaul of affirmative action programs so that they become well targeted social policy instruments.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2010-13.
Length: 62 pages
Date of creation: 2010
Date of revision:
Contact details of provider:
Postal: Crawford Building, Lennox Crossing, Building #132, Canberra ACT 0200
Phone: +61 2 6125 4705
Fax: +61 2 6125 5448
Web page: https://crawford.anu.edu.au/acde/publications/
More information through EDIRC
Malaysia; ASEAN economies; upgrading; middle-income trap;
Find related papers by JEL classification:
- N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.