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Production Networks, Profits, and Innovative Activity: Evidence from Malaysia and Thailand

In: Production Networks and Enterprises in East Asia

Author

Listed:
  • Ganeshan Wignaraja

    (Asian Development Bank)

  • Jens Krüger

    (KPMG)

  • Anna Mae Tuazon

    (Formerly Asian Development Bank)

Abstract

Cross-border production networks have been playing an increasingly important role in the Association of Southeast Asian Nations (ASEAN) countries’ trade in recent years, but micro-level studies of their impacts are rare. This chapter uses firm-level data from the two ASEAN countries that are most active in production networks (Thailand and Malaysia) and examines the effect of participating in production networks on profits and technological capabilities of firms. The empirical results suggest that participating in production networks raises profits. The evidence further suggests that participation in production networks is positively correlated with technological upgrading, measured by a technological capabilities index.

Suggested Citation

  • Ganeshan Wignaraja & Jens Krüger & Anna Mae Tuazon, 2016. "Production Networks, Profits, and Innovative Activity: Evidence from Malaysia and Thailand," ADB Institute Series on Development Economics, in: Ganeshan Wignaraja (ed.), Production Networks and Enterprises in East Asia, edition 1, chapter 0, pages 161-183, Springer.
    • Handle: RePEc:spr:adbchp:978-4-431-55498-1_8
    DOI: 10.1007/978-4-431-55498-1_8
    as

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