| By: |
Flaaen, Aaron;
Ghani, Ejaz;
Mishra, Saurabh |
| Abstract: |
Malaysia's structural transformation from low to middle income is a success
story, making it one of the most prominent manufacturing exporters'in the
world. However, like many other middle income economies, it is squeezed by the
competition from low-wage economies on the one hand, and more innovative
advanced economies on the other. What can Malaysia do? Does Malaysia need a
new growth strategy? This paper emphasizes the need for broad structural
transformation; that is, moving to higher productivity production in both
goods and services. This paper examines productivity growth for Malaysia at
the sectoral level, and constructs several measures of the sophistication of
goods and services trade, and puts these comparisons in a global context. The
results indicate that Malaysia has further opportunities for growth in the
services sector in particular. Modernizing the services sector may provide a
way out of the middle income trap, and serve as a source of growth for
Malaysia into the future. |
| Keywords: |
Economic Theory&Research,Banks&Banking Reform,Emerging Markets,Labor Policies,Economic Conditions and Volatility |
| Date: |
2013–04–01 |
| URL: |
http://d.repec.org/n?u=RePEc:wbk:wbrwps:6427&r=sea |