Trade linkages and domestic market concentration: an empirical exploration for Malaysia

This paper examines the univariate relationship between global linkages of the Malaysian manufacturing sector in the form of export intensity and intra-industry trade, respectively, on inter-industry concentration. The recently developed fully modified ordinary least squares (FMOLS) and dynamic or...

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Main Authors:	Evelyn S. Devadason, Thirunaukarasu Subramaniam
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2014
Online Access:	http://journalarticle.ukm.my/8399/ http://journalarticle.ukm.my/8399/ http://journalarticle.ukm.my/8399/1/jeko_48%281%29-1.pdf

id	ukm-8399
recordtype	eprints
spelling	ukm-83992016-12-14T06:47:07Z http://journalarticle.ukm.my/8399/ Trade linkages and domestic market concentration: an empirical exploration for Malaysia Evelyn S. Devadason, Thirunaukarasu Subramaniam, This paper examines the univariate relationship between global linkages of the Malaysian manufacturing sector in the form of export intensity and intra-industry trade, respectively, on inter-industry concentration. The recently developed fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) panel cointegration techniques are employed. The estimated long-run coefficients reveal that intra-industry trade contributes towards more concentrated markets. However, export intensity is not significantly associated with market dominance. This suggests that domestic market structure is directly related to industries that engage in two-way trade flows or trade overlap. The structure of trade therefore deserves further attention when analyzing market dominance in the Malaysian manufacturing sector, which is globally integrated at the production level. It would thus be viable to examine why and to what extent vertically integrated industries that simultaneously facilitate not just external markets for components or final products but also the import markets for components (inputs) pose barriers to industries that are less networked globally. Penerbit Universiti Kebangsaan Malaysia 2014 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/8399/1/jeko_48%281%29-1.pdf Evelyn S. Devadason, and Thirunaukarasu Subramaniam, (2014) Trade linkages and domestic market concentration: an empirical exploration for Malaysia. Jurnal Ekonomi Malaysia, 48 (1). pp. 3-12. ISSN 0127-1962 http://www.ukm.my/fep/jem/index.html
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	This paper examines the univariate relationship between global linkages of the Malaysian manufacturing sector in the form of export intensity and intra-industry trade, respectively, on inter-industry concentration. The recently developed fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) panel cointegration techniques are employed. The estimated long-run coefficients reveal that intra-industry trade contributes towards more concentrated markets. However, export intensity is not significantly associated with market dominance. This suggests that domestic market structure is directly related to industries that engage in two-way trade flows or trade overlap. The structure of trade therefore deserves further attention when analyzing market dominance in the Malaysian manufacturing sector, which is globally integrated at the production level. It would thus be viable to examine why and to what extent vertically integrated industries that simultaneously facilitate not just external markets for components or final products but also the import markets for components (inputs) pose barriers to industries that are less networked globally.
format	Article
author	Evelyn S. Devadason, Thirunaukarasu Subramaniam,
spellingShingle	Evelyn S. Devadason, Thirunaukarasu Subramaniam, Trade linkages and domestic market concentration: an empirical exploration for Malaysia
author_facet	Evelyn S. Devadason, Thirunaukarasu Subramaniam,
author_sort	Evelyn S. Devadason,
title	Trade linkages and domestic market concentration: an empirical exploration for Malaysia
title_short	Trade linkages and domestic market concentration: an empirical exploration for Malaysia
title_full	Trade linkages and domestic market concentration: an empirical exploration for Malaysia
title_fullStr	Trade linkages and domestic market concentration: an empirical exploration for Malaysia
title_full_unstemmed	Trade linkages and domestic market concentration: an empirical exploration for Malaysia
title_sort	trade linkages and domestic market concentration: an empirical exploration for malaysia
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2014
url	http://journalarticle.ukm.my/8399/ http://journalarticle.ukm.my/8399/ http://journalarticle.ukm.my/8399/1/jeko_48%281%29-1.pdf
first_indexed	2023-09-18T19:52:16Z
last_indexed	2023-09-18T19:52:16Z
_version_	1777406298627768320

Trade linkages and domestic market concentration: an empirical exploration for Malaysia

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