Leveraging trade opportunities with non-traditional partners: The Malaysia-GCC perspective

Devadason, E.S. and Baharumshah, A.Z. and Subramaniam, T. (2011) Leveraging trade opportunities with non-traditional partners: The Malaysia-GCC perspective. In: International Conference on International Trade and Investment, 19-21 Dec 2011, Mauritius. (Submitted)

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Abstract

This paper examines the impact of economic factors on bilateral trade flows between Malaysia and the Gee through estimations of panel data using a gravity model. In particular, the paper compares the determinants of bilateral trade between Malaysia and two regions, the non-traditional Gulf alliance and the traditional ASEAN counterpart, to provide insights for leveraging opportunities through trade with the former. The gravity estimates imply the importance of size effects, similarities in GDP and differences in factor endowments as drivers of trade flows between Malaysia and the Gee, underlying the fact that inter-industry trade dominates these flows. The opposite holds in the case for the Malaysia-ASEAN trade. The Gulf region therefore provides opportunities for Malaysia to export quantity-based final (end-use) products and to diversify its exporting strategy away from quality-based parts and components.

Item Type: Conference or Workshop Item (Paper)
Funders: UNSPECIFIED
Uncontrolled Keywords: Trade structure, inter-industry trade, panel gravity, GCC, Malaysia
Subjects: A General Works > AC Collections. Series. Collected works
Depositing User: Mr. Mohd Samsul Ismail
Date Deposited: 03 Mar 2015 00:06
Last Modified: 03 Mar 2015 00:06
URI: http://eprints.um.edu.my/id/eprint/12862

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