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/ http://journalarticle.ukm.my/11240/ http://journalarticle.ukm.my/11240/1/jeko_51%281%29-2.pdf

id	ukm-11240
recordtype	eprints
spelling	ukm-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
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
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/ http://journalarticle.ukm.my/11240/ http://journalarticle.ukm.my/11240/1/jeko_51%281%29-2.pdf
first_indexed	2023-09-18T19:59:45Z
last_indexed	2023-09-18T19:59:45Z
_version_	1777406769599873024

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

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