plan of presentation · 2019-04-26 · plan of presentation 1. introduc+on 2. export performance 3....
TRANSCRIPT
![Page 1: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/1.jpg)
1
![Page 2: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/2.jpg)
PLANOFPRESENTATION
1. Introduc+on
2. Exportperformance
3. Produc+onandtechnologicalstructure
¡ Value-addedcontentandunitlaborcost
¡ Sectoralmul+pliers:value-addedandcompensa+onofemployee
4. Tradefromtheperspec+veoffactorpropor+on
¡ Factorintensityinexportandimportflows
¡ Skillcontentinexportandinimportflows
5. Conclusion
2
![Page 3: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/3.jpg)
INTRODUCTION:TRADEOPENNESS
3 Source:WDI
Note*tradeopennessismeasuredby(𝑋+𝑀/𝐺𝐷𝑃 )𝑥 100
• Malaysiaisaveryopeneconomy.
• ExceptforSingapore,MalaysiaisthemostopeneconomyinASEAN.
-
50
100
150
200
250
300
350
400
450
500
2000
20
01
2002
20
03
2004
20
05
2006
20
07
2008
20
09
2010
20
11
2012
20
13
2014
20
15
2016
Perc
enta
ge (
%) Singapore
Thailand
Indonesia
Malaysia
China
![Page 4: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/4.jpg)
EXPORTS,IMPORTS,NETEXPORTS&GDP
4
Source:BNM&EPU
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000 20
00
2001
20
02
2003
20
04
2005
20
06
2007
20
08
2009
20
10
2011
20
12
2013
20
14
2015
20
16
RM
, Mill
ion
Total Exports Total Imports Net Exports GDP
Malaysia’stradevolumeisgrowingrapidly,includingthatofexports,especiallyaUer2008.Netexportisratherstablebecauseimporttooisgrowingasrapidlyasexports.MalaysiaalwaysexperiencesfavorabletradebalanceExternaltradescontributesignificantlytotheeconomicgrowthMalaysianeconomicgrowthnowrelieslessonexternaltradesthanbefore.
![Page 5: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/5.jpg)
MALAYSIA’STOP5EXPORTSHARE
58.8%
3.9%2.6%2.9%
2.7%
29.2%
2000
49.4%
5.8%3.7%
3.3%
3.6%
34.2%
2005
35.8%
7.1%
7.0%4.7%5.2%
40.3% 2015
36.6%
7.5%6.9%4.8%
5.3%
38.9%
2016
*Electrical&Electronic(E&E)andMachineryac+veinGVCs
![Page 6: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/6.jpg)
PRODUCTMIX:DETAILAGGREGATION
¡ Palmoil
o PalmOil
o Fats&Oil
¡ Machinery
o Machinery&EquipmentSpecializedforPar+cularIndustries&Parts
o Hea+ngandCoolingEquipment&Parts
6
¡ E&E
o Semi-conductors
o ElectricalApparatus&Parts
¡ Oil&Gas
o CrudePetroleum
o RefinedPetroleumProducts
¡ Chemicals
o Fer+lizers,Manufactured
o HalogenatedDeriva+vesofHydrocarbon
Thefollowingaresomeofproductsexportedunderthemainexportcategories(input-outputclassificaUon):
![Page 7: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/7.jpg)
WHATAREGVCS?
Valuechain-fullrangeofac+vi+esthatfirmsperformtobringaproductfromitsconcep+ontoend-useandbeyond
Theac+vi+esthatcompriseavaluechaincanbecontainedwithinasinglefirmordividedamongdifferentfirms
![Page 8: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/8.jpg)
BEFOREFRAGMENTATION
SL
SLSL
SL SLPB:Produc+onBlockSL:ServiceLink
AFTERFRAGMENTATION
FRAGMENTATION
![Page 9: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/9.jpg)
METHODOLOGY
¡ I-OanalysisisappropriateforstudyofGVCs
¡ Theinputfromonefirmorasubsidiaryofthefirmisusedasaninputforanotherfirm
¡ Theinterna+onalfragmenta+onofproduc+onfocusesontheimportedinputsharesofgrossoutput,totalinputsorexports
¡ Mul+plierscalculatedusingfollowingformula:
9
Whereν=primaryinputincludingvalueaddedcoefficient,; b=Leon+efcoefficient,and
σ=mul+plierforsectork
![Page 10: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/10.jpg)
METHODOLOGY
¡ Thepaper uses standard decomposi+onof output growth analysis, akribu+ngoutput growth to Domes+c demand expansion, Export demand expansion,IntermediatedemandexpansionandImportsubs+tu+on
¡ Underequilibriumcondi+ons,openinput-outputrela+oncanbepostulatedas:
X=D+W+(E-M)Where;X=vectorofgrossoutputD=vectorofdomes+cfinaldemandW=matrixofintermediatedemandE=vectorofexportdemandM=vectorofimports
10
Domestic demand
External demand
![Page 11: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/11.jpg)
METHODOLOGY
Outputgrowth(1)
∆X=Rμ1∆D+R∆E+Rμ1∆AX0+R∆μ(A0X0+D0)isdecomposedintothatdueto:(2)domes+cdemandexpansion(3)exportdemandexpansion(4)intermediatedemandexpansion(5)importsubs+tu+ondemand
11
(1) (2) (3) (4) (5)
![Page 12: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/12.jpg)
SOURCESOFDATA
12
¡ Malaysia’sinput-outputtablesfortheyears1991,2005and2010.
¡ Deflateallthetablesintoacommonbaseyear.
¡ Aggrega+ngandconformingallthethreeyears’classifica+ons
¡ Weightedaverageusingsectoraloutputasweight
¡ GVCanalysisexaminesproductsexportedfromMalaysia
![Page 13: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/13.jpg)
SOURCESOFOVERALLOUTPUTGROWTH
SourceofDemand Formula1Overall
1991-2005 1991-2010ExportDD R(E1-E0)% 51.04% 43.62%Domes+cDD R(μ1(D1-D0))% 12.44% 25.98%IntermediateDD R(μ1(A1-A0)X0)% 7.73% 9.36%ImportSubs R((μ1-μ)(A0X0+D0))% 28.80% 21.05%TOTAL 100.00% 100.00%
13
§ 1991-2005period,exportdemandthemaindrivertheeconomy’soutputgrowth,followedbyimportsubs+tu+on.
§ 1991-2010period,exportdemandasthemaindrivertooutputgrowthbecomessmaller.§ ExportdemanddecreasingbecauseofdecreaseinElectrical&Electronic(E&E)and
Machinery.
![Page 14: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/14.jpg)
SOURCESOFOUTPUTGROWTHINRESOURCEBASED&NON-RESOURCEBASEDINDUSTRIES
SourceofDemandResourceBased Non-ResourceBased
1991-2005 1991-2010 1991-2005 1991-2010ExportDD 57.33% 49.87% 48.39% 39.64%Domes+cDD 4.04% 17.86% 15.98% 31.14%IntermediateDD 8.02% 6.90% 7.60% 10.91%ImportSubs 30.60% 25.37% 28.04% 18.30%TOTAL 100.00% 100.00% 100.00% 100.00%
14
§ ResourceBasedindustry’soutputgrowthdependenceonexportdemandislargerthanthatofNon-ResourceBasedindustry.
§ Inbothtypeofindustries,Domes4cDemandseemstobecomemoresignificantovertheperiodincontribu+ngtooutputgrowth.
§ Importdependenceisdecreasingandimportsubs+tu+onisdecreasing.§ NotethatResourceBasedandNon-ResourceBasedindustriescoverallindustriesinMalaysia
(includingnon-manufacturing).
![Page 15: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/15.jpg)
EXPORTORIENTATION:UNITLABORCOSTANDVALUE-ADDEDCONTENT
ExportRaUo UnitLaborCost Value-AddedContent
2005 2010 2005 2010 2005 2010Malaysia 0.36 0.31 0.09 0.13 0.31 0.39Manufacturing 0.54 0.53 0.04 0.06 0.17 0.20
Manufacturing
ResourceBased 0.38 0.38 0.38 0.38 0.185 0.18Non-ResourceBased 0.69 0.81 0.69 0.81 0.15 0.25
Manufacturing(Top5Export)
Oil&Gas 0.40 0.42 0.01 0.04 0.433 0.52PalmOil 0.46 0.4 0.02 0.02 0.12 0.06Chemicals&ChemicalProducts 0.59 0.44 0.04 0.04 0.27 0.22
Machinery,Equipment&Parts 0.87 0.89 0.05 0.08 0.25 0.26
Electric&ElectronicProducts 0.68 0.92 0.03 0.08 0.09 0.27
15
Note:1.( 𝑥/𝑄 ),2.CEtooutputra+o,3.VAtooutputra+oDatausedforcalculaDonbasedonMalaysiaInput-OutputTable,2010Source:MIER
![Page 16: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/16.jpg)
EXPORTORIENTATION
¡ Generally,Malaysiaexports30%ofofherdomes+cproduc+onofoutput.Butthatofmanufacturingsectorwasabout54%.
¡ Exportra+odeclinesfrom0.36in2005to0.31in2010
¡ Withinthemanufacturingsector,thenon-resourcebasedexports(NRB)industrycontributedbiggershareofexport,accountedfor81%in2010(comparedto69%in2005).
¡ E&Eisthemostexportoriented,expor+ng92%0fitsoutputwasexportedin2010(68%in2005).Similarly,forthemachineryproducts,expor+ngin2010-89%(In2005,87%).
16
![Page 17: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/17.jpg)
UNITLABORCOST
¡ Malaysia’singeneralhasunitlaborcostofRM0.13in2010,thatformanufacturingwasevenloweratRM0.06in2010(RM0.04in2005).
¡ UnitlaborcosthigherforNRBmanufacturing(0.81)thanRBmanufacturing(0.38)in2010.
¡ UnitlaborcosthighestforE&Eandmachinery(0.08)in2010,whilethelowestisforpalmoil(0.02).
17
VALUE-ADDEDCONTENT
¡ VAcontenthasrisento39senperunitofoutputin2010from31senin2005.
¡ ManufacturingsectorVAcontentof20senislowerthanthena+onalaverage.
¡ VAcontenthigherforNRBthanRBproductsin2010.
¡ VAcontenthighestforoil&gas(0.52)andlowestforpalmoilproducts(0.06).
![Page 18: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/18.jpg)
MULTIPLIER ANALYSIS
ExportRaUo ValueAdded
MulUplierCompensaUon
EmployeeMulUplier 2005 2010 2005 2010 2005 2010Malaysia 0.36 0.31 0.62 0.70 0.17 0.20Manufacturing 0.54 0.53 0.47 0.56 0.12 0.13 ManufacturingResourceBased 0.38 0.38 0.59 0.65 0.14 0.14
Non-ResourceBased 0.69 0.81 0.36 0.41 0.10 0.12 Manufacturing(Top5Export)Oil&Gas 0.40 0.42 0.75 0.82 0.05 0.07PalmOil 0.46 0.40 0.75 0.81 0.25 0.19Chemicals&ChemicalProducts 0.59 0.44 0.59 0.59 0.11 0.12
Machinery,Equipment&Parts 0.87 0.89 0.42 0.42 0.09 0.12
Electric&ElectronicProducts 0.68 0.92 0.31 0.40 0.09 0.12
18
![Page 19: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/19.jpg)
VALUEADDEDMULTIPLIER
¡ Valueaddedmul+plierforMalaysiahasincreasedfrom0.62in2005to0.70in2010.
¡ VA-mul+plierislowerinmanufacturingsector(0.56)in2010.¡ RBmanufacturinghashigherVAmul+plierthanNRBmanufacturing.¡ Fortop5exports,oil&gasandpalmoilhavehighestVAmul+pliervalues.
19
COMPENSATIONEMPLOYEEMULTIPLIER§ Compensa+onemployee(CE)mul+plieringeneralis0.17in2005,roseto0.20in
2010.§ CEmul+plierlowerformanufacturingat0.12and0.13in2005and2010
respec+vely.§ RBhashigherCEmul+plierthanNRB.§ PalmoilhashighestCEmul+plier(0.19).§ CEmul+plierforChemicals,MachineryandE&Eroughlysimilarin2010at0.12.
![Page 20: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/20.jpg)
MULTIPLIERANALYSIS¡ Theeconomyingeneralhasbiggercapabilityingenera+nggrowthduring2005-10.
¡ VAandCEthatcanbegeneratedperunitofoutputformanufacturingislowerthanthatfortheoveralleconomy;implyingbiggerpoten+alforeconomicgrowthisfoundinnon-manufacturingsector
¡ Withinmanufacturing,RBhashigherpoten+althanNRBingenera+ngVAandCE.
¡ The above mul+plier analysis shows that Malaysia ability in genera+ng economicgrowth and CE relies more in non-manufacturing. If manufacturing is to beconsidereditsRBhasthebiggerpoten+al.
¡ It impliesMalaysiapoten+als inmanufacturing, including itsNRBcanbeexploredfurther.
¡ E&E has the among lowest VA and CE mul+pliers, implying its contribu+on toeconomicgrowthcomesfromvolumeratherthanperunitcapability.
¡ LookingatCE,takenotethatallsectorshavelowerCEmul+plierthanna+onal.Thatmeans, lower non-manufacturing pays higher compensa+on than top 5 exports(exceptpalmoil). 20
![Page 21: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/21.jpg)
SKILLCONTENT
21
Export-ImportSkillRaUo
Source:Bashir,MohamedSharifandA.Rashid,Zakariah(2005)SkillcontentinMalaysia'smanufacturingtrade:KeesingApproach
• Accessingthecountry’sskillcontentofexportsandimports.• Sectorally,ingeneralskilllevelofMalaysianworkforceislow.• Malaysianetimporterofpropor+onalskilledbecausera+olessthan100• Malaysiaisanetexporterofsemi-skilledcontent
![Page 22: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/22.jpg)
¡ Exportscontainednotonly largernumberofunskilled thanskilled labor,theunskilled labor content ishigher thanwhat is found in imports. Inotherwords,Exportsflowscontainedmorelow-skilledworkersthanwhatwasfoundinimportflows.
¡ Malaysia employed smaller number of skill workers in exports but itsimportflowscontainalargernumberofskilledworkers.
¡ Malaysia’scompara+veadvantageinexportliesonlow-skilledgoods.
¡ Numbers of professionals and semi-skilledworkers employed for exportflowscomparedtoimportflowshadrisen. Itimplies,theskillcontentofexportsandimportshavebeenimprovingovertheyears.Butitiss+llforfromthedesiredra+o.
22
SKILLCONTENT
![Page 23: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/23.jpg)
SKILLCONTENT
Malaysiahasabigpoten+alinimprovingcompara+veadvantageintheproduc+onofgoodsusingtechnical,skilledandsemi-skilledworkers. 23
Skill'sShareforExportsandImports(IncludingPetroleum)
Source: Bashir, Mohamed Sharif and A. Rashid, Zakariah (2005) Skill content in Malaysia's manufacturing trade: Keesing Approach
![Page 24: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/24.jpg)
SKILLCONTENT
¡ Exportperformanceistellingusaboutonlyone-halfofthetwosidedtradeperformances.Thusexportperformanceshouldbeanalyzedinrela+ontothatofimport.
¡ Eventhatexportperformanceshouldbeanalyzedinrela+ontotheeconomy’sproduc+ontechnologyandskillsets.
¡ Analyzingfactorcontent,includingworkers’skills,inexportinrela+ontoitsimportwillshedaclearerpictureofacountryexportperformance.
¡ AsmallopendevelopingeconomylikeMalaysiashouldadopttradeandindustrialpolicyappropriatetoherlevelofproduc+ontechnologyandskillsetavailable;thisisalsoapplicableunderthecurrentintrusionof4thIndustrialRevolu+on.
24
![Page 25: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/25.jpg)
POLICYIMPLICATIONS§ It is necessary to increase par+cipa+on in GVCs: VA for semi-conductor
devices(74)andTV,Radio&transmiker(75)low;butVAforcrudepalmoil(21)high
§ Mul+plierlowestforsemi-conductordevices(74)andTV,Radio&transmiker(75)
§ ItiscrucialtoincreaseVAtoensureeconomicgrowth
§ Sophis+ca+onindexinthoseproductsislow
§ WhileideallyweshouldaimforhighrankedinbothVAandsophis+ca+onindexofourexports,mostofoursarehighinVAbutlowinsophis+ca+onindex(normallyfoundinprimarycommodity)orworses+lllowinboth(normallyfoundinE&Eandwearingapparels).
§ Produc+vityandtechnologicalsophis+ca+onshouldbeupgraded
§ Ifabovenotdone,thentherewillbepar+cipa+oninGVCswithoutmuchgaintothecountrythathostsGVCs 25
![Page 26: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/26.jpg)
POLICYIMPLICATIONS
Fosteringenvironmentforknowledge-intensive
produc+on
Enhancinginvestmentincen+ves,including
thoseforFDI
Upgradinghumancapitalbyreformingthelabormarketanditssupplyside,the
educa+onsector
Akrac+ngknowledge-intensiveandtechnology-intensiveinvestmentsand
discouraginglabor-intensiveinvestments
Encouragingtechnologytransfer
EnhancingSMEdevelopmentforamoresustainableandinclusive
industraliza+on
Sepngupscienceandtechnologyparks
26
StrategiestakeninMalaysiatoincreasebenefitfrompar+cipa+oninGVCs:
![Page 27: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/27.jpg)
CONCLUSION
¡ Industrialandtradepolicyshouldbeviewedaspartandparcelofna+onaleconomicpolicy,especiallywithregardstovaluecrea+on.
¡ Fragmentedproduc+onnetworksandglobalvaluechains(GVCs)characterizetradeandinvestmentstoday
¡ Keysectorsintheeconomymaybebasedonfactorendowmentsindeterminingcompara+veadvantage,whichunderdynamicsepngcanbecreatedthroughstructuralreform.
¡ Whilestructuralreformisalwaysrelevantatall+me,phasingoutitsimplementa+onandpriori+zeamongstitsvarie+esismorecri+cal
¡ Itisnotenoughtopromoteacountrytopar+cipateinGVCswhoseeconomicandsocialimplica+onsmustalsobelookedinto
¡ WhileVAisimportantinensuringeconomicgrowthproductsophis+ca+onwillensuresustainabilityineconomicdevelopmentandgrowth
27
![Page 28: PLAN OF PRESENTATION · 2019-04-26 · PLAN OF PRESENTATION 1. Introduc+on 2. Export performance 3. Produc+on and technological structure ¡ Value-added content and unit labor cost](https://reader033.vdocument.in/reader033/viewer/2022041922/5e6c45d7f1358345223d28e5/html5/thumbnails/28.jpg)
28
THANKYOU