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Growing with Global Production Sharing: The Tale of Penang Export Hub

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  • Prema-chandra Athukorala

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Abstract

Global production sharing—the division of production processes into geographically separated stages—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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File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2011/wp_econ_2011_13.pdf
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Bibliographic Info

Paper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2011-13.

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Length: 77 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:pas:papers:2011-13

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Keywords: production sharing; production fragmentation; foreign direct investment; multinational enterprises;

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References

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  1. 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.
  2. 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.
  3. Shahid Yusuf & M. Anjum Altaf & Kaoru Nabeshima, 2004. "Global Production Networking and Technological Change in East Asia," World Bank Publications, The World Bank, number 14918, February.
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Cited by:
  1. Doner, Richard, 2012. "Success as Trap? Crisis Response And Challenges To Economic Upgrading in Export-Oriented Southeast Asia," Working Papers 45, JICA Research Institute.
  2. 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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