IDEAS home Printed from https://ideas.repec.org/a/ibn/masjnl/v2y2008i3p94.html
   My bibliography  Save this article

An Input-output Analysis of Sources of Growth and Key Sectors in Malaysia

Author

Listed:
  • Rohana Kamaruddin
  • Zakariah Rashid
  • Kamaruzaman Jusoff

Abstract

The paper examines the sources of growth and key sectors of Malaysia’s economy over 1978-2000 using a decomposition method and Rasmussen degree of dispersion within the input-output (IO) framework. The model uses three comparable IO tables for 1978, 1991 and 2000 as the main data sources and accounts for output changes from a demand side perspective. The chosen structural decomposition analysis (SDA) based on the comparison between two IO tables, allows us to decompose each sector’s and industry’s output growth. It decomposes output growth of each sector to domestic demand expansion, export demand expansion, import substitution of final goods, import substitution of intermediate goods, and changes in IO coefficients. The analysis by sub periods, 1978-1991 and 1991-2000 show that there was a switch in the role of domestic-demand and export-demand expansion. The constituent factors that contribute positively to change in the period, 1978-1991 are mostly domestic demand expansion (63.35%) and export demand expansion (33.33%). However in the second sub period, 1991-2000, export demand expansion increased by 12.43% and domestic demand expansion decreased to 48.11%. Taking the whole 1978-2000, domestic demand expansion appears to have been the major source of output growth, contributing about 82%, followed by export demand expansion 62%. Combining the source of growth and key sector through backward linkages, the study revealed that most of the sectors induced its supplying production strongly for domestic market.

Suggested Citation

  • Rohana Kamaruddin & Zakariah Rashid & Kamaruzaman Jusoff, 2008. "An Input-output Analysis of Sources of Growth and Key Sectors in Malaysia," Modern Applied Science, Canadian Center of Science and Education, vol. 2(3), pages 1-94, May.
    • Handle: RePEc:ibn:masjnl:v:2:y:2008:i:3:p:94
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/mas/article/download/2584/2411
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/mas/article/view/2584
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Syrquin, Moshe & Chenery, Hollis, 1989. "Three decades of industrialization," MPRA Paper 32771, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ahmed Al-Kawaz & Jamal Qasem, 2003. "Sources of Structural Change Within nn Input-Output Analysis Framework: The Case of Kuwait 1983-1995," Working Papers 0301, Economic Research Forum, revised 01 Feb 2003.
    2. Wang, Chengwei & Miao, Wang & Lu, Miaomiao, 2022. "Evolution of the Chinese industrial structure: A social network perspective," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    3. Harrison, Ann, 1996. "Openness and growth: A time-series, cross-country analysis for developing countries," Journal of Development Economics, Elsevier, vol. 48(2), pages 419-447, March.
    4. Harry Flam, 1992. "Product Markets and 1992: Full Integration, Large Gains?," Journal of Economic Perspectives, American Economic Association, vol. 6(4), pages 7-30, Fall.
    5. Ciarli, Tommaso & Valente, Marco, 2016. "The complex interactions between economic growth and market concentration in a model of structural change," Structural Change and Economic Dynamics, Elsevier, vol. 38(C), pages 38-54.
    6. Fisman, Raymond & Love, Inessa, 2002. "Patterns of industrial development revisted : the role of finance," Policy Research Working Paper Series 2877, The World Bank.
    7. Humberto Ortiz Carlos, 2005. "Input-Output Structure, International Trade and Economic Development i," Documentos de Trabajo 11042, Universidad del Valle, CIDSE.
    8. Syrquin, Moshe, 2010. "Kuznets and Pasinetti on the study of structural transformation: Never the Twain shall meet?," Structural Change and Economic Dynamics, Elsevier, vol. 21(4), pages 248-257, November.
    9. Dalila Chenaf-Nicet, 2020. "Dynamics of Structural Change in a Globalized World: What Is the Role Played by Institutions in the Case of Sub-Saharan African Countries?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 998-1037, September.
    10. B. Bosworth & S. M. Collins & Y. Chen, "undated". "Accounting for Difference in Economic Growth," Discussion Papers 115, Brookings Institution International Economics.
    11. Önder, Ali Sina & Yilmazkuday, Hakan, 2016. "Trade partner diversification and growth: How trade links matter," Journal of Macroeconomics, Elsevier, vol. 50(C), pages 241-258.
    12. Xu, Li & Tan, Junlan, 2020. "Financial development, industrial structure and natural resource utilization efficiency in China," Resources Policy, Elsevier, vol. 66(C).
    13. Philip N. Jefferson & Stephen A. O'Connell, 2004. "Attachment to a National Money: Evidence on Currency Holding at Different Levels of Development," Review of Development Economics, Wiley Blackwell, vol. 8(2), pages 179-197, May.
    14. Antonio Spilimbergo & Juan Luis Londoño & Miguel Székely, 1997. "Distribución del ingreso, dotación de factores y apertura comercial," Research Department Publications 4089, Inter-American Development Bank, Research Department.
    15. Atolia, Manoj, 2007. "Trade liberalization and rising wage inequality in Latin America: Reconciliation with HOS theory," Journal of International Economics, Elsevier, vol. 71(2), pages 467-494, April.
    16. Alwin D’Souza & Amit Shovon Ray, 2017. "Structural Transformation in the North-eastern Region of India: Charting Out an Agriculture-based Development Policy," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 6(3), pages 373-394, December.
    17. Sheng, Yu & Zhao, Yuhan & Zhang, Qian & Dong, Wanlu & Huang, Jikun, 2022. "Boosting rural labor off-farm employment through urban expansion in China," World Development, Elsevier, vol. 151(C).
    18. Hui, Peng & Zhao, Hui & Liu, Desheng & Li, Ye, 2023. "How does digital finance affect regional innovation capacity? A spatial econometric analysis," Economic Modelling, Elsevier, vol. 122(C).
    19. Olivier Cadot & Jaime de Melo & Patrick Plane & Laurent Wagner & Martha Tesfaye Woldemichael, 2016. "Industrialisation et transformation structurelle : l’Afrique subsaharienne peut-elle se développer sans usines ?," Revue d’économie du développement, De Boeck Université, vol. 24(2), pages 19-49.
    20. Kym Anderson, 2018. "Mining’s impact on the competitiveness of other sectors in a resource-rich economy: Australia since the 1840s," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 31(1), pages 141-151, May.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:masjnl:v:2:y:2008:i:3:p:94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.