Saudi Journal of Business and Management Studies (SJBMS)
Volume-2 | Issue-05 | 521-531
Review Article
The Comparative Advantage of Malaysia Manufactured Exports
Nazirah Zam, Noor Azuddin Yakob
Published : May 30, 2017
Abstract
This paper analyses the changes of trade pattern for Malaysia’s exports by calculating reveal comparative
advantage (RCA) indices over time. This study is based on 144 manufactures comparative advantage in the world and
Vietnam market. It classifies 144 kinds of manufactures by technology level into five general groups and nine small
groups, which cover the majority of Malaysia’s manufactured goods. This paper undertakes an analysis of the
comparative advantage of Malaysia manufactured goods from 2010 to 2015. The results indicate that most of the
products with comparative advantage in the world market are high technology products, particularly E&E products and
process industries products. In term of Vietnam market, agriculture-based products and process industries are more
dominance. However, Malaysia manufactured products competitiveness in Vietnam market have shifted from low
technology products to medium technology products which indicates the same pattern with the world.