The Growth of China and India: Implications and Policy Reform Options for Malaysia

This study explores the trade-related impacts of rapid growth of China and India on the Malaysian economy and evaluates policy options to better position Malaysia to take advantage of these changes. Higher growth in China and India is likely to raise Malaysia's national income and to expand Mal...

Full description

Bibliographic Details
Main Authors:	Ianchovichina, Elena, Ivanic, Maros, Martin, Will
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Trade Policy International Trade Organizations F130 Country and Industry Studies of Trade F140 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Industrialization Manufacturing and Service Industries Choice of Technology O140 International Linkages to Development Role of International Organizations O190 Socialist Systems and Transitional Economies : National Income, Product, and Expenditure Money Inflation P240 Socialist Institutions and Their Transitions: International Trade, Finance, Investment, and Aid P330
Online Access:	http://hdl.handle.net/10986/5862

id	okr-10986-5862
recordtype	oai_dc
spelling	okr-10986-58622021-04-23T14:02:23Z The Growth of China and India: Implications and Policy Reform Options for Malaysia Ianchovichina, Elena Ivanic, Maros Martin, Will Trade Policy International Trade Organizations F130 Country and Industry Studies of Trade F140 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Industrialization Manufacturing and Service Industries Choice of Technology O140 International Linkages to Development Role of International Organizations O190 Socialist Systems and Transitional Economies : National Income, Product, and Expenditure Money Inflation P240 Socialist Institutions and Their Transitions: International Trade, Finance, Investment, and Aid P330 This study explores the trade-related impacts of rapid growth of China and India on the Malaysian economy and evaluates policy options to better position Malaysia to take advantage of these changes. Higher growth in China and India is likely to raise Malaysia's national income and to expand Malaysia's natural resource and agricultural exports, while putting downward pressure on exports from some manufacturing and service sectors. Increases in the quality and variety of exports from China and India are likely to increase substantially the overall gains to Malaysia. The expansion of the natural resource sectors and the contraction of manufacturing and services reflect a Dutch-disease effect that will raise the importance of policies to facilitate adaptation to the changing world economy and improve competitiveness. Most-favoured-nation (MFN) liberalisation would increase welfare, and, by increasing competitiveness, raise output and exports of key industries. Preferential liberalisation with India and completely free trade with China would provide greater market access gains than MFN reform, but neither would be as effective in increasing income as MFN liberalisation, and free trade agreements would lead to greater competitive pressure on many of Malaysia's industries than MFN liberalisation. Increased investments in education and infrastructure could boost manufacturing and services sectors in Malaysia, while improving trade logistics would benefit sectors with high transport costs, including the agricultural and resource-based industries. 2012-03-30T07:34:54Z 2012-03-30T07:34:54Z 2010 Journal Article Asian-Pacific Economic Literature 08189935 http://hdl.handle.net/10986/5862 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Malaysia China India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Trade Policy International Trade Organizations F130 Country and Industry Studies of Trade F140 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Industrialization Manufacturing and Service Industries Choice of Technology O140 International Linkages to Development Role of International Organizations O190 Socialist Systems and Transitional Economies : National Income, Product, and Expenditure Money Inflation P240 Socialist Institutions and Their Transitions: International Trade, Finance, Investment, and Aid P330
spellingShingle	Trade Policy International Trade Organizations F130 Country and Industry Studies of Trade F140 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Industrialization Manufacturing and Service Industries Choice of Technology O140 International Linkages to Development Role of International Organizations O190 Socialist Systems and Transitional Economies : National Income, Product, and Expenditure Money Inflation P240 Socialist Institutions and Their Transitions: International Trade, Finance, Investment, and Aid P330 Ianchovichina, Elena Ivanic, Maros Martin, Will The Growth of China and India: Implications and Policy Reform Options for Malaysia
geographic_facet	Malaysia China India
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This study explores the trade-related impacts of rapid growth of China and India on the Malaysian economy and evaluates policy options to better position Malaysia to take advantage of these changes. Higher growth in China and India is likely to raise Malaysia's national income and to expand Malaysia's natural resource and agricultural exports, while putting downward pressure on exports from some manufacturing and service sectors. Increases in the quality and variety of exports from China and India are likely to increase substantially the overall gains to Malaysia. The expansion of the natural resource sectors and the contraction of manufacturing and services reflect a Dutch-disease effect that will raise the importance of policies to facilitate adaptation to the changing world economy and improve competitiveness. Most-favoured-nation (MFN) liberalisation would increase welfare, and, by increasing competitiveness, raise output and exports of key industries. Preferential liberalisation with India and completely free trade with China would provide greater market access gains than MFN reform, but neither would be as effective in increasing income as MFN liberalisation, and free trade agreements would lead to greater competitive pressure on many of Malaysia's industries than MFN liberalisation. Increased investments in education and infrastructure could boost manufacturing and services sectors in Malaysia, while improving trade logistics would benefit sectors with high transport costs, including the agricultural and resource-based industries.
format	Journal Article
author	Ianchovichina, Elena Ivanic, Maros Martin, Will
author_facet	Ianchovichina, Elena Ivanic, Maros Martin, Will
author_sort	Ianchovichina, Elena
title	The Growth of China and India: Implications and Policy Reform Options for Malaysia
title_short	The Growth of China and India: Implications and Policy Reform Options for Malaysia
title_full	The Growth of China and India: Implications and Policy Reform Options for Malaysia
title_fullStr	The Growth of China and India: Implications and Policy Reform Options for Malaysia
title_full_unstemmed	The Growth of China and India: Implications and Policy Reform Options for Malaysia
title_sort	growth of china and india: implications and policy reform options for malaysia
publishDate	2012
url	http://hdl.handle.net/10986/5862
_version_	1764396582141165568

The Growth of China and India: Implications and Policy Reform Options for Malaysia

Similar Items