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Structural Transformation and Economic Resilience: The Case of Malaysia

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  • Cassey LEE

    (ISEAS – Yusof Ishak Institute, Singapore)

Abstract

Exports have been a critical source for the resilience of the Malaysian economy during the COVID-19 pandemic and post-pandemic period. Long-term structural change in intersectoral production networks could have reduced this resilience. Stronger domestic intersectoral linkages and declining participation in backward global value chain participation are likely to reduce the impact of positive export shocks on the country’s economy. The services sector has become increasing important over time. Consumption in the services sector is clearly an important driver of growth. A positive export shock is enhanced by higher domestic intersectoral linkages in the services sector but not in manufacturing

Suggested Citation

  • Cassey LEE, 2024. "Structural Transformation and Economic Resilience: The Case of Malaysia," Working Papers DP-2024-02, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2024-02
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    References listed on IDEAS

    as
    1. Vasco M. Carvalho & Basile Grassi, 2019. "Large Firm Dynamics and the Business Cycle," American Economic Review, American Economic Association, vol. 109(4), pages 1375-1425, April.
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    3. Ernest Liu, 2019. "Industrial Policies in Production Networks," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(4), pages 1883-1948.
    4. Jeff Tan, 2014. "Running out of steam? Manufacturing in Malaysia," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 38(1), pages 153-180.
    5. Alessio Moro, 2015. "Structural Change, Growth, and Volatility," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(3), pages 259-294, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    structural change; exports; macroeconomic fluctuations;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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