{"id":3852,"date":"2021-06-12T16:26:21","date_gmt":"2021-06-12T08:26:21","guid":{"rendered":"https:\/\/www.ukm.my\/jem\/?post_type=article&#038;p=3852"},"modified":"2021-09-09T12:29:58","modified_gmt":"2021-09-09T04:29:58","slug":"free-trade-agreements-and-production-sharing-in-malaysian-manufacturing-industries","status":"publish","type":"article","link":"https:\/\/www.ukm.my\/jem\/article\/free-trade-agreements-and-production-sharing-in-malaysian-manufacturing-industries\/","title":{"rendered":"Free Trade Agreements and Production Sharing in Malaysian Manufacturing Industries"},"content":{"rendered":"<p><span class=\"fontstyle0\">Malaysia unilaterally reduced its tariff and expanded its bilateral manufactured exports in the 1990s. However, in the 2000s, Malaysia signed a growing number of free trade agreements (<\/span><span class=\"fontstyle0\">FTA<\/span><span class=\"fontstyle0\">) to lower its tariff among member countries. this study examines the impact of the growing number of <\/span><span class=\"fontstyle0\">FTA<\/span><span class=\"fontstyle0\">s on Malaysia\u2019s bilateral manufactured exports at industry level in general and based on production sharing in particular over the period of 1990 to 2016 by three-year average. <\/span><span class=\"fontstyle0\">FTA<\/span><span class=\"fontstyle0\">-and-foreign input interaction term is embedded in the gravity equation model to examine the extent of <\/span><span class=\"fontstyle0\">FTA<\/span><span class=\"fontstyle0\">s in expanding production sharing-based bilateral manufactured exports. the empirical results of this study are based on dynamic panel system generalized method of moments (S<\/span><span class=\"fontstyle0\">YS-GMM<\/span><span class=\"fontstyle0\">) technique where <\/span><span class=\"fontstyle0\">FTA <\/span><span class=\"fontstyle0\">dummies are weakly exogenous. The findings show that the <\/span><span class=\"fontstyle0\">ASEAN <\/span><span class=\"fontstyle0\">Free trade Area (<\/span><span class=\"fontstyle0\">AFTA<\/span><span class=\"fontstyle0\">) and bilateral trade agreements have significant impact on Malaysia\u2019s non-resource-based exports and are associated with production sharing; while <\/span><span class=\"fontstyle0\">AFTA<\/span><span class=\"fontstyle0\">-plus-one shows no evidence of diverting Malaysian production sharing-based bilateral manufactured exports from its member countries. Moreover, <\/span><span class=\"fontstyle0\">FTA <\/span><span class=\"fontstyle0\">formation has no relation to the Malaysian resource-based exports. the proliferation of <\/span><span class=\"fontstyle0\">FTA<\/span><span class=\"fontstyle0\">s does not assure net export-enhancing effect on manufacturing activities among member countries, but is largely associated with international production sharing.<\/span><\/p>\n","protected":false},"template":"","tags":[511,306,512,510,513],"jel-code":[],"article-type":[1329],"class_list":["entry","author-jem","post-3852","article","type-article","status-publish","tag-free-trade-agreements","tag-gravity-model","tag-international-production-sharing","tag-international-trade","tag-manufacturing-in-malaysia","article-type-normal-article"],"_links":{"self":[{"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article\/3852","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article"}],"about":[{"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/types\/article"}],"version-history":[{"count":1,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article\/3852\/revisions"}],"predecessor-version":[{"id":3860,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article\/3852\/revisions\/3860"}],"wp:attachment":[{"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/media?parent=3852"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/tags?post=3852"},{"taxonomy":"jel-code","embeddable":true,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/jel-code?post=3852"},{"taxonomy":"article-type","embeddable":true,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article-type?post=3852"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}