Assessing structural changes in the Malaysian economy: I-O approach

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Bekhet H.A.
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This study attempts to re-investigate the production structure change for the Malaysian economy through changes in the A and (I-A) -1 matrices over the period 1980-2005, when the planners formulated and implemented nine plans so far. Five input-output tables were published by the Department of Statistics in Malaysia for the period under study. A structural change method was carried out to analyze and assess the changes in economic efficiency. This comparative study focuses on changes in the economic structure with different levels of development over time (1980-2005). The change in the economic structure is decomposed into two initial components (technology and total output). In accordance with the results, there appear to be similarities over time in the national structure of production patterns of intermediate use of commodities. Also, the results clearly indicate a rather remarkable degree of commonality in the patterns of growth processes, with more significant differences among sectors than between tables. However, the changes within sectors, and the Malaysian table as a whole, seem to result from changes in the level of the efficiency. Technical relationship seems to have remained relatively unchanged. It is clear that the economy has not moved fast enough forward, and does not seem to be geared by, the type of exports that may sustain a dynamic industrial development, based on external markets. New evidence is revealed in this study: the efficiency degree between demand and supply side for the Malaysian economy still remain weak and changeable over the period of study. � 2012 Elsevier B.V.
Coefficient change , Decomposition analysis , Economic structure , Improving efficiency , Input-output model , Malaysia , Structural change