enjoy reading fellas... and spare a thought for who's going to have to look up all that export data. although to be honest, there are probably worse things to research than one's own country. I'm actually quite interested in economics, and in Malaysia in general, so this thesis is probably going to be the point where that interest ends... =P
oh btw, honourable mentions go to Olivia and Annabelle for helping me proofread this at a late hour. Your comments were appreciated (i'll append Olivia's revamp of my abstract one day =P)
thanks girls!
A Revealed Comparative Advantage Analysis of the Export Competitiveness of Malaysia and Singapore
The ASEAN economies have generally experienced large economic growth and industrialisation in the past two decades. Export-led strategies have been at the heart of the region’s economic growth. However, the region’s vulnerability to the 1997 financial crisis and intensifying competitive pressure brings the risk that the ASEAN economies will be marginalised in terms of exports, with an adverse effect on growth. Export competitiveness is thus a key issue for ASEAN’s future economic prospects.
The dissertation will focus on Malaysia and Singapore for several reasons. Firstly, both economies are highly interdependent in terms of trade and capital flows. Also, in comparison to the other ASEAN members, there is a greater and pronouncedly increasing competition in bilateral trade between both countries. Finally, both countries are also especially open to international trade and capital flows and possess the most competitive economies in ASEAN.
Malaysia’s export sector, dominated by electronics and petroleum-based products has contributed significantly to its past economic growth, and its export competitiveness will be crucial to its future growth. However, a changing global environment marked by growing trade liberalisation, increasing competition and the emergence of other low-cost producers in the region requires an analysis of Malaysia’s export competitiveness.
Singapore’s export sector, dominated by the electronics sector has experienced slowing growth, partially due to increasing competition. Thus, there needs to be an assessment of its export sector to determine whether this decline reflects an erosion in competitiveness, or a natural process of shifting comparative advantage and market diversification.
The principal aim of the dissertation will be to determine the structure of comparative advantage during the period 1995-2005 enjoyed by Malaysia and Singapore in the global market. Firstly, the export structures of both countries will be analysed at a general level. The Balassa index (1965) will then be used to analyse trends in the pattern of comparative advantage in exports in both countries during the 1995-2005 period at a broad and disaggregated level. The leading manufacturing industries in terms of comparative advantage will be identified.
The degree of trade competition between the two countries will then be analysed using the index of trade competition. General trends in trade competition over the 1995-2005 period will be analysed, with a focus on 2005 where analysis will be done at a disaggregated level.
Linnemann’s (1996) COS index will be used to assess the potential for expanding trade between the two nations across different sectors. The extent to which the pattern of specialisation as observed in Malaysia and Singapore is competitive or complementary in the world market will thus be analysed.
Finally, the dissertation will focus in detail on the electronics industry of both countries. A revealed comparative advantage analysis of the different products within the industry over the period 1995-2005 will be undertaken. An in-depth analysis of this sector is relevant as it is a key component of the exports of both countries, being the leading export for both countries in 2005.
Just for fun, i've attached the original (pre-proof-reading) manuscript. The red marks indicate Olivia's comments (Thanks again =D)
The ASEAN economies have generally experienced large economic growth and industrialisation in the past two decades (rephrase?). Export-led strategies have been at the heart of the region’s economic growth. However, the region’s vulnerability to the 1997 financial crisis and intensifying competitive pressure brings the risk that the ASEAN economies will be marginalised in terms of exports, with (leading to?) an adverse effect on growth. Export competitiveness is thus a key issue for ASEAN’s future economic prospects.
The dissertation will focus on Malaysia and Singapore for several reasons. Firstly, both economies are highly interdependent in terms of trade and capital flows. Also (delete?), in comparison to the other ASEAN members, there is a greater and pronouncedly increasing competition in bilateral trade between both countries. Finally (additionally), both countries are also (delete) especially open to international trade and capital flows and possess the most competitive economies in ASEAN.
Malaysia’s export sector is dominated by electronics and petroleum-based products, which have contributed significantly to its past economic growth. Should try and link sentences somehow? Its export competitiveness will be crucial to its future growth. However (delete), a changing global environment marked by growing trade liberalisation, increasing competition and the emergence of other low-cost producers in the region requires an analysis of Malaysia’s export competitiveness.
(On the other hand…. On the contary? In contrast? Hmm.. ) Singapore’s export sector, which is dominated by the (delete) electronics sector (delete? I don’t like repetition =P. the term ‘electronics’ makes sense by itself anyway.) has experienced slowing growth, partially due to increasing competition. Thus, there needs to be (delete…is need for) an assessment of its export sector to determine whether this decline reflects an erosion in competitiveness, or a natural process of shifting comparative advantage and market diversification.
The principal aim of the dissertation will be to determine the structure of comparative advantage during the period 1995-2005 enjoyed by Malaysia and Singapore in the global market. Firstly, the export structures of both countries will be analysed at a general level. The Balassa index (1965) will then be used to analyse trends in the pattern of comparative advantage in exports in both countries during the 1995-2005 period at a broad and disaggregated level. (this will allow for… to be identified?) The leading manufacturing industries in terms of comparative advantage will be identified.
The degree of trade competition between the two countries will then be analysed using the index of trade competition. General trends in trade competition over the 1995-2005 period will be analysed, with a focus on 2005 where analysis will be done at a disaggregated level.
Linnemann’s (1996) COS index will be used to assess the potential for expanding trade between the two nations across different sectors. The extent to which the pattern of specialisation as observed in Malaysia and Singapore is competitive or complementary in the world market will thus be analysed.
Finally, the dissertation will focus in detail on the electronics industry of both countries. A revealed comparative advantage analysis of the different products within the industry over the period 1995-2005 will be undertaken. An in-depth analysis of this sector is relevant as it is a key component of the exports of both countries, being the leading export for both countries in 2005. Maybe refine it a little here… it’s a bit clumsy.
1 comment:
hey nicely written. only thing.. "Finally, both countries are also especially open to international trade and capital flows and possess the most competitive economies in ASEAN." not sure what u mean - would 'represent' be a better word or are you trying to say that there is a competitive economy within each of the two countries? sorry not very cluey when it comes to econs.
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