2011
DOI: 10.5509/2011844715
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Is Malaysia Facing Negative Deindustrialization?

Abstract: This paper seeks to examine whether Malaysia is facing negative deindustrialization by examining value-added, trade and productivity trends over the period 1990-2005. The evidence produced in the paper is concrete enough to confirm that Malaysia is facing negative deindustrialization. While it is typical, as part of the process of structural change, to see a rise and fall in the share occupied by manufacturing in the GDP, the evidence shows that Malaysia is indeed facing premature deindustrialization with a tr… Show more

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Cited by 55 publications
(47 citation statements)
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“…Under these circumstances, the next phase of development on which policymakers should focus is promoting the capacity and capabilities of local firms. A more balanced approach would bolster existing electronics clusters with appropriate institutional infrastructure for technology‐intensive manufacturing, including standards and testing laboratories, quality control centers, and so on, building on the cumulative success of past policies (Ohno ; Rasiah ).…”
Section: Resultsmentioning
confidence: 99%
See 1 more Smart Citation
“…Under these circumstances, the next phase of development on which policymakers should focus is promoting the capacity and capabilities of local firms. A more balanced approach would bolster existing electronics clusters with appropriate institutional infrastructure for technology‐intensive manufacturing, including standards and testing laboratories, quality control centers, and so on, building on the cumulative success of past policies (Ohno ; Rasiah ).…”
Section: Resultsmentioning
confidence: 99%
“…Furthermore, lacking a strong entrepreneurial pool it represents a different economic model from Taiwan, Korea, and China (Jomo ). The meteoric rise of China and India and the rapid pace of globalization have forced Malaysia to reinvent itself so that it can remain competitive and relevant (Meyanathan ; Rasiah ).…”
mentioning
confidence: 99%
“…Politicians, academics, businesses, and reporters have long voiced concerns that Malaysia was facing industrial decline and the 'middle income trap' [46][47][48][49][50][51]. Electronics, long a critical industrial sector, has experienced limited upgrading since the turn of the century.…”
Section: Industrial Challengesmentioning
confidence: 99%
“…Instead, there is a downward trend in the share of manufacturing output and employment since 2000, indicating a sectoral shift to services and the onset of a relative decline in the manufacturing sector that Rasiah (2011) identifies as deindustrialisation. The nature of this decline will be explored in the next section of this article.…”
Section: Services Development In Malaysia and Chinamentioning
confidence: 99%