How does the rise of China affect Malaysia's electronic and electrical sector?

Ting, Onn (2016) How does the rise of China affect Malaysia's electronic and electrical sector? Doctoral thesis, University of East Anglia.

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Abstract

After joining the WTO in 2001, China’s total exports grew by 19.3% per annum up to 2013 and the country emerged as the world’s biggest exporter of manufactured electronics. China’s rise has had an impact on developing countries such as Malaysia, a major exporter of electronic and electrical (E&E) goods. Malaysia aims to be a high-income economy by 2020, and upgrading its E&E value chain is critical to this goal. Malaysia is part of the East Asian production network and China imports intermediate inputs from Malaysia’s E&E for its final exports while simultaneously expanding in similar product spaces. This means the effect on Malaysia of China’s rise is complex.
Contemporary literature divides the impact of China’s rise into competitive and complementary effects, and this research aims to further understand the effect of China’s rise on Malaysia’s E&E trade and investment channels, using a mixed methodology approach. The research analyses the bilateral E&E trade patterns, the extent of trade competition at the destination markets, with the trade structure disaggregated by sophistication and by type of goods1 analysis. Subsequently it examines China’s impact on the semiconductor machinery segment, a backward linkage of the IC industry. Finally, the influence of China’s rise on investments aspects of Malaysia’s E&E industry is also explored.
1 Types of goods category such as final goods, parts and accessories or durables.
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The research finds that while imports from China compete with imports from Malaysia in the US and Japanese markets (the EU market is different), China’s competition in trade is also spurring Malaysia to upgrade its exports’ sophistication. China also creates new demand for Malaysia’s semiconductor machinery. Finally, while resulting in short-term job losses, China’s diversion of E&E investment from Malaysia provide opportunities for Malaysians to start new firms, and for MNCs based in Malaysia to upgrade their production.

Item Type: Thesis (Doctoral)
Faculty \ School: Faculty of Social Sciences > School of International Development
Depositing User: Stacey Armes
Date Deposited: 29 Jun 2016 11:13
Last Modified: 29 Jun 2016 11:13
URI: https://ueaeprints.uea.ac.uk/id/eprint/59625
DOI:

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