Technical efficiency of establishments in Malaysia’s electrical and electronics industries: exporting or vertical trade?

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 t...

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Main Authors: Noor Aini Khalifah,, Zakiah Jaafar,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2017
Online Access:http://journalarticle.ukm.my/11240/1/jeko_51%281%29-2.pdf
http://journalarticle.ukm.my/11240/
http://www.ukm.my/fep/jem/content/2017.html
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spelling my-ukm.journal.112402018-01-13T23:11:24Z http://journalarticle.ukm.my/11240/ Technical efficiency of establishments in Malaysia’s electrical and electronics industries: exporting or vertical trade? Noor Aini Khalifah, Zakiah Jaafar, 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 necessarily mean higher efficiency of establishments and hence, an unqualified policy of export expansion within the context of vertical trade and global value chains in production should be conducted with caution. Technical progress is not significant in all of the models estimated. Penerbit Universiti Kebangsaan Malaysia 2017 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/11240/1/jeko_51%281%29-2.pdf Noor Aini Khalifah, and Zakiah Jaafar, (2017) Technical efficiency of establishments in Malaysia’s electrical and electronics industries: exporting or vertical trade? Jurnal Ekonomi Malaysia, 51 (1). pp. 15-31. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2017.html
institution Universiti Kebangsaan Malaysia
building Perpustakaan Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description 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 necessarily mean higher efficiency of establishments and hence, an unqualified policy of export expansion within the context of vertical trade and global value chains in production should be conducted with caution. Technical progress is not significant in all of the models estimated.
format Article
author Noor Aini Khalifah,
Zakiah Jaafar,
spellingShingle Noor Aini Khalifah,
Zakiah Jaafar,
Technical efficiency of establishments in Malaysia’s electrical and electronics industries: exporting or vertical trade?
author_facet Noor Aini Khalifah,
Zakiah Jaafar,
author_sort Noor Aini Khalifah,
title Technical efficiency of establishments in Malaysia’s electrical and electronics industries: exporting or vertical trade?
title_short Technical efficiency of establishments in Malaysia’s electrical and electronics industries: exporting or vertical trade?
title_full Technical efficiency of establishments in Malaysia’s electrical and electronics industries: exporting or vertical trade?
title_fullStr Technical efficiency of establishments in Malaysia’s electrical and electronics industries: exporting or vertical trade?
title_full_unstemmed Technical efficiency of establishments in Malaysia’s electrical and electronics industries: exporting or vertical trade?
title_sort technical efficiency of establishments in malaysia’s electrical and electronics industries: exporting or vertical trade?
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2017
url http://journalarticle.ukm.my/11240/1/jeko_51%281%29-2.pdf
http://journalarticle.ukm.my/11240/
http://www.ukm.my/fep/jem/content/2017.html
_version_ 1643738424518115328
score 13.211869