International Economics

Afiza Idris · Normaz Wana Ismail · Shaufique Fahmi · Ahmad Sidique · Shivee Ranjanee Kaliappan ·International Journal of Economics and Management ·2020 ·JEL: C41, F10, F14

Furthering future growth for the food processing industry in Malaysia faces multiple challenges, an area in which a recent trend shows the competitiveness of the exported processed food industry is declining. The sustainability of export flow is found to be a critical factor for long-term export growth. This paper provides empirical evidence on the survival pattern of Malaysia’s processed food exports. The Kaplan-Meier technique is used in this paper to estimate the export survival time and rate of 128 processed food products at 31 export destinations for the period between 2000 and 2017. The findings show that food exporters face a high risk of failure in the initial years of exporting. At the aggregate level, the median survival time of processed food exports is two years, which means that 50% of export relationships face failure by the second year of exporting. The chances of export survival differ in terms of product groups and export destinations. This study also found that a higher initial export value increases the success rate of export survival.

Beng Ann Tee · Siew Yean Tham · Andrew Jia Yi Kam ·Malaysian Journal of Economic Studies ·2020 ·JEL: F1, F14, L8

ICT intensive services were found to contribute to the service export growth in developed countries. However, empirical work on the role of ICT in ASEAN’s services export is sparse due mainly to the scarcity of bilateral services trade data. This study uses mirror data from the ASEAN-5’s trading partners from 2000 to 2012 for examining the impact of ICT on the ASEAN-5’s services export. A set of constructed ICT indicators are found to have significant positive network effect on the ASEAN-5’s services export. Thus, the higher the ICT development level in both trading partner countries, the higher their bilateral services exports with each other. But, the positive impact of ICT on the ASEAN-5’s trade in services can be offset by the presence of trade costs. Therefore, policies enhancing trade facilitation should be used in tandem with the development of ICT in order to promote the ASEAN-5’s services export.

Siew Yean Tham · Soo Khoon Goh · Koi Nyen Wong · Ahmad Fadhli ·Emerging Markets Finance and Trade ·2018 ·JEL: F21

In light of a change in the foreign direct investment (FDI) landscape such as the rapid growth of outward FDI from Malaysia since 2007, this article ascertains the possible impact of inward and outward FDI on Malaysia’s bilateral export trade at the sectoral level, using a dynamic gravity approach. The findings reveal that both inward and outward FDI are complementary to bilateral export trade in the services, mining, and manufacturing sectors. Furthermore, the distance elasticity and the real effective exchange rate have a different negative impact on different sectors. Overall, the sectoral bilateral exports could not insulate against external events.

Arif Imam Suroso ·Economies ·2022

Palm oil is one of the most traded vegetable oils in the global market due to its versatile usage and having a lower price than competitor products. Trade is related to logistics performance as it connects the exporter and importer countries; thus, improving the indicators of logistics also improves the performance of trade, especially in agricultural export. Currently, no study has revealed the effect of logistics performance on palm oil export by considering all the indicators. This study investigates the impact of all the indicators of the logistics performance index on palm oil and palm-based products. Using a panel data regression approach, the extended gravity model is applied in this study to examine Indonesia and Malaysia as the leading exporters of palm oil and palmbased products. The results reveal that all the Logistics Performance Index indicators affect palm oil and palm-based products export in Indonesia and Malaysia. The critical indicators of the Logistics Performance Index in Indonesia are timeliness and tracking and tracing. However, competence and quality of trade infrastructure are the main indicators of Malaysia’s palm oil and palm-based products. The future direction of this research is to explore other agricultural commodities and extend the period of the analysis.