Export Diversification and Economic Growth in Malaysia
AbstractThis paper examines the relationship between export diversification and economic growth in Malaysia. We use annual data from 1980-2007 and time-series techniques of cointegration and Granger causality tests to examine the long-run relationship and dynamic interactions among the variables. The results show the presence of a unique cointegrating vector among the four variables. Consistent with previous studies, we found that export diversification plays significant roles to economic growth in Malaysia. This finding suggests that, in order to sustain future economic growth under the static effect of multilateral and regional trade liberalization, Malaysia should diversify its export commodities and develop greater social and economic cooperation with the rest of the world. As an export-oriented economy, in the long run, export diversification strategy could help stabilizing Malaysia’s export earnings.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 20588.
Date of creation: 09 Feb 2010
Date of revision:
export diversification; economic growth; revealed comparative advantage;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-02-20 (All new papers)
- NEP-FDG-2010-02-20 (Financial Development & Growth)
- NEP-INT-2010-02-20 (International Trade)
- NEP-SEA-2010-02-20 (South East Asia)
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