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Disaggregated export demand of Malaysia: evidence from the electronics industry

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  • 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.

Suggested Citation

  • Koi Nyen Wong, 2008. "Disaggregated export demand of Malaysia: evidence from the electronics industry," Economics Bulletin, AccessEcon, vol. 6(7), pages 1-14.
    • Handle: RePEc:ebl:ecbull:eb-08f40001
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    References listed on IDEAS

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    More about this item

    Keywords

    Export demand price elasticity electronics industry industrialization.;

    JEL classification:

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

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