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The objective of this paper was to empirically examine the impact of exports on the level of innovation in the manufacturing sector of Malaysia and to focus on the role of heterogeneity in exports by using detailed industry-level cross-sectional data on Malaysia’s manufacturing sector in 2014. Utilising the CDM model, as postulated by Crepon, Duguet & Mairesse (1998), this paper investigated whether exporting to more countries, exporting greater volumes, and exporting greater volumes to high-income countries induced industry to increase its level of innovation. Estimates from the CDM model showed, overall, a positive impact of exports on innovation, more specifically, heterogeneity in exports mattered to industries’ innovating in the manufacturing sector in Malaysia. Additionally, exporting to additional foreign destinations, exporting greater volumes of product, and exporting more products to low-income countries, especially to South Asian and Southeast Asian countries, had a significant influence on inducing industries to engage in innovation activities.
Yuanfang Chen; Lim Thye Goh. Exports and Innovation in Malaysia: the role of Heterogeneity. Indonesian Journal of Economics, Social, and Humanities 2021, 3, 35 -54.
AMA StyleYuanfang Chen, Lim Thye Goh. Exports and Innovation in Malaysia: the role of Heterogeneity. Indonesian Journal of Economics, Social, and Humanities. 2021; 3 (1):35-54.
Chicago/Turabian StyleYuanfang Chen; Lim Thye Goh. 2021. "Exports and Innovation in Malaysia: the role of Heterogeneity." Indonesian Journal of Economics, Social, and Humanities 3, no. 1: 35-54.
This study examines the extent to which existing foreign direct investment (FDI) theories apply to Chinese investment in the Belt and Road Initiative (BRI) countries. This is important because existing explanations of Chinese outward FDI (OFDI) generally make scant reference to these theories. By using OFDI data for BRI countries between 2003 and 2017, we tested hypothesizes applicable to existing theories by using both pooled ordinary least squares (PLOS) and stochastic frontier analysis (SFA) methods. The results show that a large part of the existing theories apply to Chinese OFDI. Chinese OFDI is likely to choose countries with big market size, abundant natural resources, cheap unskilled labor, stable politics, good infrastructure, high trade cost and high investment cost. These positive findings notwithstanding, they do not invalidate the alternative factors cited by commentators which have not been subject to direct testing, which may require the use of qualitative analytical approaches.
Le Chang; Jing Li; Kee-Cheok Cheong; Lim-Thye Goh. Can Existing Theories Explain China’s Outward Foreign Direct Investment in Belt and Road Countries. Sustainability 2021, 13, 1389 .
AMA StyleLe Chang, Jing Li, Kee-Cheok Cheong, Lim-Thye Goh. Can Existing Theories Explain China’s Outward Foreign Direct Investment in Belt and Road Countries. Sustainability. 2021; 13 (3):1389.
Chicago/Turabian StyleLe Chang; Jing Li; Kee-Cheok Cheong; Lim-Thye Goh. 2021. "Can Existing Theories Explain China’s Outward Foreign Direct Investment in Belt and Road Countries." Sustainability 13, no. 3: 1389.