Determinants Of Malaysia’s Resource-Based Rubber Medical Devices
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Date
2019-02
Authors
Lee, Siu Ming
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
Malaysia is a world leading resource-based rubber medical devices (RMD)
exporter and has remarkable success in the value-added RMD export rather than
depending on exporting the raw rubber. However, Malaysia faces the challenges of
decreasing market share due to increasing competition from other countries, and
stagnating RMD market share. This study examines the determinants of Malaysia’s RMD
export for 1989-2013. Empirical techniques used are Pooled Ordinary Least Squares
(OLS), panel estimation of fixed (FE) and random effect (RE) and Poisson pseudomaximum
likelihood. Findings show that the key determinants in terms of exporter’s and
importers’ income and manufacturing industry incomes (separate estimations) are
significant in the gravity model. Distance (a proxy for transportation cost) was
insignificant but Logistic Performance Index provides the explanation that a country with
less developed logistics infrastructure may make transporting costlier to a nearby country.
Importers with higher healthcare expenditure per capita showed significance in increasing
Malaysia’s RMD import while countries with number of people living with HIV/AIDS
(indicating disease awareness, infection prevention and control) are not significant in
reducing import of Malaysia’s RMD. All Malaysia’s bilateral FTA partners show
significant negative relationship in terms of lower imports relative to other non-bilateral
FTA partners especially compared against the export to high income, large countries,
relatively.
Description
Keywords
Malaysia’s Resource-Based Rubber , Export