Outward Orientation and Economic Development in Malaysia

Athukorala, Prema‐chandra; Menon, Jayant

doi:10.1111/1467-9701.00250

Cited by 40 publications

(31 citation statements)

References 5 publications

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“…The structure of industry that evolved was still much in line with what one would have expected, given the nature of Malaysia's comparative advantage and changing factor endowments (Athukorala and Menon, 1999). Most of the industries set up under HICOM were "born losers" artificially spawned with subsidies.…”

Section: Phase Ii: the New Economic Policy Period 1970 To 1987mentioning

confidence: 82%

Macroeconomic management amid ethnic diversity: Fifty years of Malaysian experience

Menon¹

2009

Journal of Asian Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. ADBI's discussion papers reflect initial ideas on a topic, and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each discussion paper (given in the citation below). Some discussion papers may develop into research papers or other forms of publication. The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of ADBI, the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms. Terms of use: Documents in ADBI Discussion Paper 102 Jayant Menon AbstractThis paper examines the role that macroeconomic policy management has played in the Malaysian development experience. Given the multiracial nature of Malaysian society, macroeconomic policy has not only been about economic stabilization, but also about addressing income disparities along racial lines in order to preserve social harmony. The affirmative action program under the New Economic Policy was an important signaling device, and served to demonstrate that all should share in future growth. Its actual contribution is difficult to determine, because rapid economic growth and structural change were taking place concurrently. Although its resource cost was not a major drag on growth in the past, the slowdown in FDI inflows and exports post-crisis, combined with demographic change, implies that reforms may be necessary to ensure sustainability, going forward. The key lesson to come from the Malaysian experience is that in a small open economy, the task of achieving the conflicting objectives of growth and equity is facilitated by a long-term commitment to an open and liberal trade and investment policy regime.

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Section: Phase Ii: the New Economic Policy Period 1970 To 1987mentioning

confidence: 82%

Macroeconomic management amid ethnic diversity: Fifty years of Malaysian experience

Menon¹

2009

Journal of Asian Economics

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“…Total employment increased at an average rate of 3.6% per year during 1970-90, whereas population growth was only 2.6%. The share of manufacturing in total labor employment increased from 14% in the mid-1970s to over 26% in the mid-1990s (Athukorala & Menon, 2002). Malay employment benefitted from an expansion of the public sector (as shown in Table 1, its growth rate during 1970-90 was comparable to that of the other sectors).…”

Section: Economic Growth and Income Inequalitymentioning

confidence: 95%

Sources of Income Growth and Inequality Across Ethnic Groups in Malaysia, 1970–2000

2015

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This paper examines the sources of income growth for major ethnic groups in Malaysia. An input-output structural decomposition analysis is extended and applied to the social accounting matrices of 1970 and 2000. The results indicate that the expansion of exports and the changes in the compensation of labor and capital inputs are the main determinants for the income changes. The effects differ largely between rural and urban areas, between skilled and unskilled workers, and between the major ethnic groups. The combination of these two determinants, however, is a dominant factor in explaining the increase in income inequality in Malaysia.

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“…Trade in labour intensive products, including both agriculture and manufacturing products, has the potential to create substantial employment opportunities for low skilled workers, precisely those living below or near the poverty line. A number of studies have come up with evidence in support of this mainstream prediction (Athukorala and Menon, 1999;Fields, 1980;Krueger et al, 1988: Fei et al, 1979Harrison, 2006;Manning, 1998).…”

Section: Reviewmentioning

confidence: 98%

Trade Liberalisation and The Poverty of Nations: A Review Article

Athukorala

2011

Journal of Development Studies

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Outward Orientation and Economic Development in Malaysia

Cited by 40 publications

References 5 publications

Macroeconomic management amid ethnic diversity: Fifty years of Malaysian experience

Macroeconomic management amid ethnic diversity: Fifty years of Malaysian experience

Sources of Income Growth and Inequality Across Ethnic Groups in Malaysia, 1970–2000

Trade Liberalisation and The Poverty of Nations: A Review Article

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