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Assessing structural changes in the Malaysian economy: I–O approach


  • Bekhet, Hussain Ali


This study attempts to re-investigate the production structure change for the Malaysian economy through changes in the A and (I−A)−1 matrices over the period 1980–2005, when the planners formulated and implemented nine plans so far. Five input–output tables were published by the Department of Statistics in Malaysia for the period under study. A structural change method was carried out to analyze and assess the changes in economic efficiency. This comparative study focuses on changes in the economic structure with different levels of development over time (1980–2005). The change in the economic structure is decomposed into two initial components (technology and total output). In accordance with the results, there appear to be similarities over time in the national structure of production patterns of intermediate use of commodities. Also, the results clearly indicate a rather remarkable degree of commonality in the patterns of growth processes, with more significant differences among sectors than between tables. However, the changes within sectors, and the Malaysian table as a whole, seem to result from changes in the level of the efficiency. Technical relationship seems to have remained relatively unchanged. It is clear that the economy has not moved fast enough forward, and does not seem to be geared by, the type of exports that may sustain a dynamic industrial development, based on external markets. New evidence is revealed in this study: the efficiency degree between demand and supply side for the Malaysian economy still remain weak and changeable over the period of study.

Suggested Citation

  • Bekhet, Hussain Ali, 2013. "Assessing structural changes in the Malaysian economy: I–O approach," Economic Modelling, Elsevier, vol. 30(C), pages 126-135.
  • Handle: RePEc:eee:ecmode:v:30:y:2013:i:c:p:126-135
    DOI: 10.1016/j.econmod.2012.09.014

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    References listed on IDEAS

    1. Hussain Ali Bekhet, 2012. "Assessing development efficiency in Malaysian economy: input-output approach," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(3), pages 297-325.
    2. Sterner, Thomas, 1985. "Structural change and technology choice : Energy use in Mexican manufacturing industry, 1970-1981," Energy Economics, Elsevier, vol. 7(2), pages 77-86, April.
    3. Wolff, Edward N, 1985. "Industrial Composition, Interindustry Effects, and the U.S. Productivity Slowdown," The Review of Economics and Statistics, MIT Press, vol. 67(2), pages 268-277, May.
    4. Rose, A. & Chen, C. Y., 1991. "Sources of change in energy use in the U.S. economy, 1972-1982 : A structural decomposition analysis," Resources and Energy, Elsevier, vol. 13(1), pages 1-21, April.
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    Cited by:

    1. Hussain Ali Bekhet & Tahira Yasmin, 2014. "Assessment of the global financial crisis effects on energy consumption and economic growth in Malaysia: An input–output analysis," International Economics, CEPII research center, issue 140, pages 49-70.
    2. Rohman, Ibrahim Kholilul & Bohlin, Erik, 2014. "Decomposition analysis of the telecommunications sector in Indonesia: What does the cellular era shed light on?," Telecommunications Policy, Elsevier, vol. 38(3), pages 248-263.


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