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Disaggregated export demand of Malaysia: evidence from the electronics industry

Author Info

  • Koi Nyen Wong

    ()

    (Monash University, Sunway Campus)

Abstract

This study estimates the determinants of foreign demand for Malaysia's top five electronics exports by SITC (Standard International Trade Classification) product groups from 1990 to 2001. Cointegration results indicate a unique long-run relationship between export demand for electronic products and relative prices and foreign income. Both the estimated long-run income and price elasticities of export demand are greater than 1, conforming to a pattern found in most fast-growing economies and implying price is an important factor in explaining export growth with the exception of semiconductor exports. The present study has important policy implications to the competitiveness of electronics exports that can lead Malaysia''s transition towards high-technology industrialization.

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File URL: http://www.accessecon.com/pubs/EB/2008/Volume6/EB-08F40001A.pdf
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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 6 (2008)
Issue (Month): 7 ()
Pages: 1-14

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Handle: RePEc:ebl:ecbull:eb-08f40001
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Keywords: Export demand price elasticity electronics industry industrialization.;

Find related papers by JEL classification:

  • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
  • F1 - International Economics - - Trade

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  9. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-80, November.
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  15. Perron, Pierre, 1989. "The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis," Econometrica, Econometric Society, vol. 57(6), pages 1361-1401, November.
  16. Arize, Augustine C & Osang, Thomas & Slottje, Daniel J, 2000. "Exchange-Rate Volatility and Foreign Trade: Evidence from Thirteen LDC's," Journal of Business & Economic Statistics, American Statistical Association, vol. 18(1), pages 10-17, January.
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Cited by:

  1. Kamel Jlassi, 2015. "Modelling and Forecasting of Tunisian Current Account: Aggregate versus Disaggregate Approach," IHEID Working Papers 13-2015, Economics Section, The Graduate Institute of International Studies.

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