Constant-market-share analysis (CMSA) is one of the most widely employed descriptive tool for mea... more Constant-market-share analysis (CMSA) is one of the most widely employed descriptive tool for measuring the export competitiveness of a country relative to other countries or regions of trade for goods and services. Typically, export growth is attributed to growth in the country’s export competitiveness and also to the growth effect of the market itself. However, CMSA measurement is prone to a number of methodological short comings which stems from the CMS identities used in the analysis. Namely, the discrete approximation of continuously changing trade patterns, the interaction effects term residual from the CMS identity decomposition and the arbitrary choice of weights attached to base periods. This paper addresses some of the short comings of the classic CMSA approach. Within a geometric framework we reexamine the CMS decomposition and propose a new net-share approach that is easier to implement and interpret. For researchers and policy makers, this methodology presents a simpler...
This paper examines the relationship between foreign presence and market concentration and thus c... more This paper examines the relationship between foreign presence and market concentration and thus competition in the Malaysian manufacturing sector by looking at the determinants of foreign presence and market concentration respectively. Using a panel of aggregate 5-digit Malaysian manufacturing industries for 2001-04, different extents and proxies of foreign presence are utilized to test the hypothesis that higher foreign presence leads to more concentrated market. The single equation results show that foreign presence, in terms of fixed assets share, has no significant impact on increasing the level of market concentration, while higher foreign presence in an industry, in regards to both value added and employment shares, significantly contributes towards more concentrated markets. On the other hand, a highly concentrated market is also one of the significant determinants for all proxies of foreign presence. In both instances, the extent of foreign shareholdings does not matter as much as the types of proxy used to measure foreign presence. However, a system of four equations, including market concentration (under the StructureConduct-Performance framework) and foreign presence, estimated using Two-Stage Least Squares (2SLS) with fixed effects shows no significant evidence to support the existence of simultaneity between market concentration and foreign presence.
The rapid expansion of Malaysia’s non-resource-based manufactured exports is closely related to i... more The rapid expansion of Malaysia’s non-resource-based manufactured exports is closely related to its participation in international production networks that are largely mediated by multinational enterprises. This study examines the extent of the Malaysian manufacturing industry participating in international production sharing and the role of intermediate imports in production sharing exports. Intermediate imports are embedded in a standard gravity equation model of bilateral exports as essential complementary inputs for international production sharing. The data is based on OECD STAN database and models estimated using dynamic panel system generalized method of moment technique to account for the dynamic process of bilateral exports and endogeneity issues. The findings show evidence of non-resource-based industry’s participation in international production sharing as supported by the positive and significant impact of intermediate imports. Malaysia’s resource-based industry involves...
436 PRODUCTIVITY SPILLOVERS FROM FOREIGN DIRECT INVESTMENT IN MALAYSIAN MANUFACTURING INDUSTRIES ... more 436 PRODUCTIVITY SPILLOVERS FROM FOREIGN DIRECT INVESTMENT IN MALAYSIAN MANUFACTURING INDUSTRIES DURING THE 1990s: A PRELIMINARY RESULT Noor Aini Khalifah Universiti Kebangsaan Malaysia Radziah Adam Universiti Sains Malaysia ...
... Haynes, Stephen E., and Joe A. Stone, "Secular and Cyclical Resp... more ... Haynes, Stephen E., and Joe A. Stone, "Secular and Cyclical Responses of US Trade to Income: An Evaluation of Traditional Models," this REVIEW 65 (Feb. ... Rousslang, Donald P., and Stephen Parker, "Cross-Price Elas-ticities of US Import Demand," this REVIEW 66 (Aug. ...
This paper examines the relationship between foreign presence and market concentration and thus c... more This paper examines the relationship between foreign presence and market concentration and thus competition in the
Does “openness” determine “catching-up” of establishments to frontier technology and total factor... more Does “openness” determine “catching-up” of establishments to frontier technology and total factor productivity (TFP) in Malaysia's electrical and electronic (E&E) industries? We contribute to this debate by applying a new measurement of processing trade intensity. Utilizing stochastic frontier analysis and Levinsohn and Pertrin (LP) TFP, we investigate determinants of technical efficiency (TE) and TFP. The results show that processing trade intensity and not export intensity determines TE and TFP for the overall sample and subsample of foreign establishments. In the processing trade subsample, export intensity is negatively related to TE and unrelated to TFP, obtaining an unconventional result that exporters are inefficient and not associated with TFP. The results show that higher foreign ownership shares of establishments are negatively associated with LP TFP.
This study compares export intensity and vertical trade intensity in determining technical effici... more This study compares export intensity and vertical trade intensity in determining technical efficiency (TE) of establishments in Malaysia’s electrical and electronics industries (E&E) amongst other explanatory variables. We measure fragmentation or vertical trade intensity as two-way trade or the overlap of exports and imported inputs weighted by gross output of establishments. In the overall sample of establishments, vertical trade intensity is a significant determinant of (TE) whereas export intensity is not. A bigger scale of production, a higher degree of vertical integration and higher labour quality are positively related to TE whereas higher industrial concentration is negatively associated with TE. In the sub-sample of ordinary trading establishments, export intensity is a significant determinant of technical efficiency whereas in the sub-sample of vertical trading establishments, export intensity is not a significant determinant of TE. Higher export intensity does not necess...
This paper examines the relationship between foreign presence and market concentration and thus c... more This paper examines the relationship between foreign presence and market concentration and thus competition in the Malaysian manufacturing sector by looking at the determinants of foreign presence and market concentration respectively. Using a panel of aggregate 5-digit Malaysian manufacturing industries for 2001-04, different extents and proxies of foreign presence are utilized to test the hypothesis that higher foreign presence leads to more concentrated market. The single equation results show that foreign presence, in terms of fixed assets share, has no significant impact on increasing the level of market concentration, while higher foreign presence in an industry, in regards to both value added and employment shares, significantly contributes towards more concentrated markets. On the other hand, a highly concentrated market is also one of the significant determinants for all proxies of foreign presence. In both instances, the extent of foreign shareholdings does not matter as m...
Fragmentation of production processes has generated two-way or vertical trade in intermediate goo... more Fragmentation of production processes has generated two-way or vertical trade in intermediate goods including for export processing. The literature on measuring the extent of this vertical specialization trade involves measurement procedures within an input-output framework. In this paper, utilizing a geometric framework of the production box, we propose to measure vertical trade (VT) as the overlap of exports and imports at the establishment level where imports represent an assortment of imported inputs. A high degree of overlap between exports (X) and imported inputs (Minp) denotes processing trade. VT can be aggregated for all establishments and computed at the industry level. Normalization of VT on gross output (Q) is introduced as VTQ and normalization of VT on total trade using ISIC production data is a VTindex akin to the Grubel-Lloyd index. We frame the VTQ measure, the VTindex and other selected trade specialization measures in the production box of establishments. The VTQ ...
The principal aim a/this study is to provide empirical ('{l idellce 011 the phenomena 0/ il1l... more The principal aim a/this study is to provide empirical ('{l idellce 011 the phenomena 0/ il1lra-illdustry trade ill the bilateral trade of the East Asian Economic Cauclls (EAEC) coumries and the Unit ed Stales (US) and the EAEC alld Japan. The rationale for doiny so. is to evaluate the impact O/bOI h US alld Japan ill COlllribLiI iny to illt ra-indust ry trade as it relates to the disc ussions on trade illleyrat ion wit hill EA 1:('" ami the Asiall Pacific Economic Cooperatiol1 (A PEC). The reslIlt s show that tlte contrihlllioll o/the US to int ra-industry oIthe EAEC is /"raer thcm that · ~r
Constant-market-share analysis (CMSA) is one of the most widely employed descriptive tool for mea... more Constant-market-share analysis (CMSA) is one of the most widely employed descriptive tool for measuring the export competitiveness of a country relative to other countries or regions of trade for goods and services. Typically, export growth is attributed to growth in the country’s export competitiveness and also to the growth effect of the market itself. However, CMSA measurement is prone to a number of methodological short comings which stems from the CMS identities used in the analysis. Namely, the discrete approximation of continuously changing trade patterns, the interaction effects term residual from the CMS identity decomposition and the arbitrary choice of weights attached to base periods. This paper addresses some of the short comings of the classic CMSA approach. Within a geometric framework we reexamine the CMS decomposition and propose a new net-share approach that is easier to implement and interpret. For researchers and policy makers, this methodology presents a simpler...
This paper examines the relationship between foreign presence and market concentration and thus c... more This paper examines the relationship between foreign presence and market concentration and thus competition in the Malaysian manufacturing sector by looking at the determinants of foreign presence and market concentration respectively. Using a panel of aggregate 5-digit Malaysian manufacturing industries for 2001-04, different extents and proxies of foreign presence are utilized to test the hypothesis that higher foreign presence leads to more concentrated market. The single equation results show that foreign presence, in terms of fixed assets share, has no significant impact on increasing the level of market concentration, while higher foreign presence in an industry, in regards to both value added and employment shares, significantly contributes towards more concentrated markets. On the other hand, a highly concentrated market is also one of the significant determinants for all proxies of foreign presence. In both instances, the extent of foreign shareholdings does not matter as much as the types of proxy used to measure foreign presence. However, a system of four equations, including market concentration (under the StructureConduct-Performance framework) and foreign presence, estimated using Two-Stage Least Squares (2SLS) with fixed effects shows no significant evidence to support the existence of simultaneity between market concentration and foreign presence.
The rapid expansion of Malaysia’s non-resource-based manufactured exports is closely related to i... more The rapid expansion of Malaysia’s non-resource-based manufactured exports is closely related to its participation in international production networks that are largely mediated by multinational enterprises. This study examines the extent of the Malaysian manufacturing industry participating in international production sharing and the role of intermediate imports in production sharing exports. Intermediate imports are embedded in a standard gravity equation model of bilateral exports as essential complementary inputs for international production sharing. The data is based on OECD STAN database and models estimated using dynamic panel system generalized method of moment technique to account for the dynamic process of bilateral exports and endogeneity issues. The findings show evidence of non-resource-based industry’s participation in international production sharing as supported by the positive and significant impact of intermediate imports. Malaysia’s resource-based industry involves...
436 PRODUCTIVITY SPILLOVERS FROM FOREIGN DIRECT INVESTMENT IN MALAYSIAN MANUFACTURING INDUSTRIES ... more 436 PRODUCTIVITY SPILLOVERS FROM FOREIGN DIRECT INVESTMENT IN MALAYSIAN MANUFACTURING INDUSTRIES DURING THE 1990s: A PRELIMINARY RESULT Noor Aini Khalifah Universiti Kebangsaan Malaysia Radziah Adam Universiti Sains Malaysia ...
... Haynes, Stephen E., and Joe A. Stone, "Secular and Cyclical Resp... more ... Haynes, Stephen E., and Joe A. Stone, "Secular and Cyclical Responses of US Trade to Income: An Evaluation of Traditional Models," this REVIEW 65 (Feb. ... Rousslang, Donald P., and Stephen Parker, "Cross-Price Elas-ticities of US Import Demand," this REVIEW 66 (Aug. ...
This paper examines the relationship between foreign presence and market concentration and thus c... more This paper examines the relationship between foreign presence and market concentration and thus competition in the
Does “openness” determine “catching-up” of establishments to frontier technology and total factor... more Does “openness” determine “catching-up” of establishments to frontier technology and total factor productivity (TFP) in Malaysia's electrical and electronic (E&E) industries? We contribute to this debate by applying a new measurement of processing trade intensity. Utilizing stochastic frontier analysis and Levinsohn and Pertrin (LP) TFP, we investigate determinants of technical efficiency (TE) and TFP. The results show that processing trade intensity and not export intensity determines TE and TFP for the overall sample and subsample of foreign establishments. In the processing trade subsample, export intensity is negatively related to TE and unrelated to TFP, obtaining an unconventional result that exporters are inefficient and not associated with TFP. The results show that higher foreign ownership shares of establishments are negatively associated with LP TFP.
This study compares export intensity and vertical trade intensity in determining technical effici... more This study compares export intensity and vertical trade intensity in determining technical efficiency (TE) of establishments in Malaysia’s electrical and electronics industries (E&E) amongst other explanatory variables. We measure fragmentation or vertical trade intensity as two-way trade or the overlap of exports and imported inputs weighted by gross output of establishments. In the overall sample of establishments, vertical trade intensity is a significant determinant of (TE) whereas export intensity is not. A bigger scale of production, a higher degree of vertical integration and higher labour quality are positively related to TE whereas higher industrial concentration is negatively associated with TE. In the sub-sample of ordinary trading establishments, export intensity is a significant determinant of technical efficiency whereas in the sub-sample of vertical trading establishments, export intensity is not a significant determinant of TE. Higher export intensity does not necess...
This paper examines the relationship between foreign presence and market concentration and thus c... more This paper examines the relationship between foreign presence and market concentration and thus competition in the Malaysian manufacturing sector by looking at the determinants of foreign presence and market concentration respectively. Using a panel of aggregate 5-digit Malaysian manufacturing industries for 2001-04, different extents and proxies of foreign presence are utilized to test the hypothesis that higher foreign presence leads to more concentrated market. The single equation results show that foreign presence, in terms of fixed assets share, has no significant impact on increasing the level of market concentration, while higher foreign presence in an industry, in regards to both value added and employment shares, significantly contributes towards more concentrated markets. On the other hand, a highly concentrated market is also one of the significant determinants for all proxies of foreign presence. In both instances, the extent of foreign shareholdings does not matter as m...
Fragmentation of production processes has generated two-way or vertical trade in intermediate goo... more Fragmentation of production processes has generated two-way or vertical trade in intermediate goods including for export processing. The literature on measuring the extent of this vertical specialization trade involves measurement procedures within an input-output framework. In this paper, utilizing a geometric framework of the production box, we propose to measure vertical trade (VT) as the overlap of exports and imports at the establishment level where imports represent an assortment of imported inputs. A high degree of overlap between exports (X) and imported inputs (Minp) denotes processing trade. VT can be aggregated for all establishments and computed at the industry level. Normalization of VT on gross output (Q) is introduced as VTQ and normalization of VT on total trade using ISIC production data is a VTindex akin to the Grubel-Lloyd index. We frame the VTQ measure, the VTindex and other selected trade specialization measures in the production box of establishments. The VTQ ...
The principal aim a/this study is to provide empirical ('{l idellce 011 the phenomena 0/ il1l... more The principal aim a/this study is to provide empirical ('{l idellce 011 the phenomena 0/ il1lra-illdustry trade ill the bilateral trade of the East Asian Economic Cauclls (EAEC) coumries and the Unit ed Stales (US) and the EAEC alld Japan. The rationale for doiny so. is to evaluate the impact O/bOI h US alld Japan ill COlllribLiI iny to illt ra-indust ry trade as it relates to the disc ussions on trade illleyrat ion wit hill EA 1:('" ami the Asiall Pacific Economic Cooperatiol1 (A PEC). The reslIlt s show that tlte contrihlllioll o/the US to int ra-industry oIthe EAEC is /"raer thcm that · ~r
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