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://journalarticle.ukm.my/5836/

id	ukm-5836
recordtype	eprints
spelling	ukm-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
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
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://journalarticle.ukm.my/5836/
first_indexed	2023-09-18T19:45:17Z
last_indexed	2023-09-18T19:45:17Z
_version_	1777405858802565120

Foreign presence and market concentration in Malaysian manufacturing industries.

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