Growing with Global Production Sharing: The Tale of Penang Export Hub
AbstractGlobal production sharingâ€”the division of production processes into geographically separated stagesâ€”is a central feature of economic globalization. This study seeks to broaden our understanding of global production sharing, and to explore policy options for developing countries to engage effectively in production networks through a case study of the export production hub in the State of Penang, Malaysia. The findings uphold Penang as a unique example of marrying national development strategy with emerging opportunities for international specialization within global production networks. The state government of Penang has not only attracted major multinational enterprises in global electronics industry but also helped them become deeply rooted in the economy through a well-design investment promotion strategy, infrastructure development, skills development and vocational training, and promoting a domestic vendor network around the branch plants of MNEs.
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Bibliographic InfoPaper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2011-13.
Length: 77 pages
Date of creation: 2011
Date of revision:
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production sharing; production fragmentation; foreign direct investment; multinational enterprises;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F20 - International Economics - - International Factor Movements and International Business - - - General
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
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- Yusuf , Shahid & Nabeshima, Kaoru, 2009. "Can Malaysia escape the middle-income Trap ? a strategy for Penang," Policy Research Working Paper Series 4971, The World Bank.
- Athukorala, Prema-chandra, 2010.
"Production Networks and Trade Patterns in East Asia: Regionalization or Globalization?,"
Working Papers on Regional Economic Integration
56, Asian Development Bank.
- Prema-chandra Athukorala, 2011. "Production Networks and Trade Patterns in East Asia: Regionalization or Globalization?," Asian Economic Papers, MIT Press, vol. 10(1), pages 65-95, January.
- THORBECKE, Willem, 2012. "The Short- and Long-Run Effects of Exchange Rate Changes on the Japanese Electronics Industry," Discussion papers 12019, Research Institute of Economy, Trade and Industry (RIETI).
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