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Disaggregated export demand of Malaysia: evidence from the electronics industry

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Listed author(s):
  • 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 & Juselius, Katarina, 1994. "Identification of the long-run and the short-run structure an application to the ISLM model," Journal of Econometrics, Elsevier, vol. 63(1), pages 7-36, July.
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  12. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 39(3), pages 106-135.
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  15. Johansen, Søren & Juselius, Katarina, 1992. "Testing structural hypotheses in a multivariate cointegration analysis of the PPP and the UIP for UK," Journal of Econometrics, Elsevier, vol. 53(1-3), pages 211-244.
  16. Abdelhak S. Senhadji & Claudio E. Montenegro, 1999. "Time Series Analysis of Export Demand Equations: A Cross-Country Analysis," IMF Staff Papers, Palgrave Macmillan, vol. 46(3), pages 1-2.
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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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