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Foreign presence and market concentration in Malaysian manufacturing industries.

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 indus...

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Main Authors: Radziah Adam,, Noor Aini Khalifah,
Format: Article
Published: Penerbit Universiti Kebangsaan Malaysia 2012
Online Access:http://journalarticle.ukm.my/5836/
http://www.ukm.my/penerbit/jem.htm
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spelling my-ukm.journal.58362013-01-14T01:47:58Z http://journalarticle.ukm.my/5836/ Foreign presence and market concentration in Malaysian manufacturing industries. Radziah Adam, Noor Aini Khalifah, 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 foriegn 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 the types of proxy used to measure foreign presence.However, asystem of four equations,including market concentration (under the Structure-Conduct-Performance framework) and foreign presence, estimated using Two-Stage Least Squares (2SLS) with fexid effects shows no significant evidence to support the existence of simultaneity between market concentration and foreign presence. Penerbit Universiti Kebangsaan Malaysia 2012-06 Article PeerReviewed Radziah Adam, and Noor Aini Khalifah, (2012) Foreign presence and market concentration in Malaysian manufacturing industries. Jurnal Ekonomi Malaysia, 46 (1). pp. 119-132. ISSN 0127-1962 http://www.ukm.my/penerbit/jem.htm
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/
description 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 foriegn 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 the types of proxy used to measure foreign presence.However, asystem of four equations,including market concentration (under the Structure-Conduct-Performance framework) and foreign presence, estimated using Two-Stage Least Squares (2SLS) with fexid effects shows no significant evidence to support the existence of simultaneity between market concentration and foreign presence.
format Article
author Radziah Adam,
Noor Aini Khalifah,
spellingShingle Radziah Adam,
Noor Aini Khalifah,
Foreign presence and market concentration in Malaysian manufacturing industries.
author_facet Radziah Adam,
Noor Aini Khalifah,
author_sort Radziah Adam,
title Foreign presence and market concentration in Malaysian manufacturing industries.
title_short Foreign presence and market concentration in Malaysian manufacturing industries.
title_full Foreign presence and market concentration in Malaysian manufacturing industries.
title_fullStr Foreign presence and market concentration in Malaysian manufacturing industries.
title_full_unstemmed Foreign presence and market concentration in Malaysian manufacturing industries.
title_sort foreign presence and market concentration in malaysian manufacturing industries.
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2012
url http://journalarticle.ukm.my/5836/
http://www.ukm.my/penerbit/jem.htm
_version_ 1643736559487287296
score 13.211869

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