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Export of Furniture Product from Malaysia: Market Prospects and Challenges

Author

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  • Ahasanul Haque
  • Farzana Yasmin
  • Naila Anwar
  • Zariyah Ibrahim

Abstract

This study seeks to investigate the export competitiveness of Malaysian furniture product through the application of a collection of methods, which includes Revealed Comparative Advantage (RCA), Constant Market Share (CMS) and Shift Share. SITC 821, which represents the furniture product under the Standard International Trade Classification (SITC) for the period between 2000 and 2011, has been taken into consideration. The RCA method reveals that is an escalation in the countries competitive advantage of furniture product. The results from CMS method indicate that export gain of Malaysian furniture product is to a great extent a result of the size of the market as well as its competitive effect. Furthermore, CMS analysis also illustrates there has been significant improvements in the furniture industry throughout the given period which are Period I and II, Period and II and III and Period III and I. Additionally, shift share analysis shows that countries such as Brunei, Algeria, Norway, Lebanon and Korea are the major markets with the greatest potential. However, major challenges, in terms of competition, still exist mainly with Asian countries.

Suggested Citation

  • Ahasanul Haque & Farzana Yasmin & Naila Anwar & Zariyah Ibrahim, 2013. "Export of Furniture Product from Malaysia: Market Prospects and Challenges," Journal of Economics and Behavioral Studies, AMH International, vol. 5(7), pages 406-419, July.
    • Handle: RePEc:rnd:arjebs:v:5:y:2013:i:7:id:2575
    DOI: 10.22610/jebs.v5i7.415
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