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High Technology Trade, Innovation and Economic Growth: Evidence from Aggregate and Disaggregate Trade Products

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  • Leonard Lam, Fong Litt

    (School of Business and Economics Universiti Putra Malaysia 43400 UPM Serdang , Selangor MALAYSIA.)

  • Law, Siong Hook

    (School of Business and Economics Universiti Putra Malaysia 43400 UPM Serdang, Selangor MALAYSIA.)

  • Azman-Saini, W. N. W.

    (School of Business and Economics Universiti Putra Malaysia 43400 UPM Serdang, Selangor MALAYSIA.)

  • Khair-Afham, M. S. M.

    (School of Business and Economics Universiti Putra Malaysia 43400 UPM Serdang, Selangor MALAYSIA.)

  • Goh, Lim Thye

    (Faculty of Economics and Administration Universiti Malaya 50603 Kuala Lumpur MALAYSIA.)

Abstract

This study evaluates the effect of high-technology trade on economic growth in an emerging economy, using quarterly data from 1990 until 2018. The role of innovation in moderating the high technology trade - economic growth nexus also emphasize. The empirical findings based on the autoregressive distributed lag (ARDL) approach reveal that high-tech trade, foreign direct investment and physical capital stock are statistically significant determinants of economic growth. The innovation must be presence to support or moderate the effect of high-tech industry on economic growth. Moving into subsector, the findings indicate that the development of machinery and transport equipment, mineral fuels and lubricants, manufactured goods and chemical sectors are crucial as the niche areas of focus for policy design and resource allocation. The results are robust using the fully modified ordinary least squares (FMOLS) estimation.

Suggested Citation

  • Leonard Lam, Fong Litt & Law, Siong Hook & Azman-Saini, W. N. W. & Khair-Afham, M. S. M. & Goh, Lim Thye, 2022. "High Technology Trade, Innovation and Economic Growth: Evidence from Aggregate and Disaggregate Trade Products," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 56(1), pages 15-31.
    • Handle: RePEc:ukm:jlekon:v:56:y:2022:i:1:p:15-31
    DOI: http://dx.doi.org/10.17576/JEM-2022-5601-02
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    More about this item

    Keywords

    ARDL; FMOLS; High technology; Malaysia; economic growth; technological innovation;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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