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International production networks and host country productivity: evidence from Malaysia
Author(s) -
Kam Andrew JiaYi
Publication year - 2013
Publication title -
asian‐pacific economic literature
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.232
H-Index - 21
eISSN - 1467-8411
pISSN - 0818-9935
DOI - 10.1111/apel.12006
Subject(s) - productivity , foreign direct investment , production (economics) , fragmentation (computing) , international trade , business , total factor productivity , economics , investment (military) , international economics , economic geography , economic growth , macroeconomics , political science , politics , computer science , law , operating system
In the 1990s, Malaysia, along with other East Asian countries, achieved rapid economic growth rates. Research has yet to ascertain the extent to which this rapid economic growth was due to the development of global production networks. The main objective of the paper is to examine the impact of international production fragmentation on productivity growth. The paper hypothesises that international production fragmentation increases productivity growth through trade and foreign direct investment, and that productivity growth increases due to skill‐intensive industries producing within an international production network.