IDEAS home Printed from https://ideas.repec.org/a/mjr/journl/v59y2022i1p153-170.html
   My bibliography  Save this article

A Quantile Regression Analysis of Absorptive Capacity in the Malaysian Manufacturing Industry

Author

Listed:
  • Norhanishah Mohamad Yunus

    (School of Distance Education, Universiti Sains Malaysia)

  • Norehan Abdullah

    (School of Economics, Finance and Banking, Universiti Utara Malaysia)

Abstract

Using a set of absorptive capacity proxies, we present new empirical findings on the role of absorptive capacity in assimilating the technology effects from the presence of multinational corporations (MNCs) in the Malaysian manufacturing industry. We applied a quantile regression estimator to explicitly gauge the level of absorptive capacity among workers by their levels of education at different quantiles of the conditional FDI distribution during the period of 2000–2018. We conclude that the medium-high technology industries benefit more from FDI if the workers’ absorptive capacity level reaches at least the median quantile. Based on the findings of this study, we suggest that educational digitisation efforts in enhancing quality human capital should be intensified, by equipping them with the latest knowledge and skills, which in turn requires cooperation between universities, public technical and vocational education and training (TVET) institutions as well as MNCs.

Suggested Citation

  • Norhanishah Mohamad Yunus & Norehan Abdullah, 2022. "A Quantile Regression Analysis of Absorptive Capacity in the Malaysian Manufacturing Industry," Malaysian Journal of Economic Studies, Faculty of Business and Economics, University of Malaya & Malaysian Economic Association, vol. 59(1), pages 153-170, June.
    • Handle: RePEc:mjr:journl:v:59:y:2022:i:1:p:153-170
    DOI: 10.22452/MJES.vol59no1.8
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    Technology effects; foreign direct investment; human capital; absorptive capacity; quantile regression;
    All these keywords.

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mjr:journl:v:59:y:2022:i:1:p:153-170. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Malaysian Economic Association (email available below). General contact details of provider: https://edirc.repec.org/data/pemmmea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.