The impact of external shocks on the comparative advantage of the Malaysian food processing industry.
Scheduled liberalization of trade preferences under the World Trade Organisation and the Asean Free Trade Area has heightened the challenges faced by the Malaysian food producers. To penetrate a wider range of markets, Malaysian food processors have to identify food sub-sectors that are internationa...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English English |
| Published: |
Faculty of Economics and Management, Universiti Putra Malaysia.
2008
|
| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/17185/1/The%20impact%20of%20external%20shocks%20on%20the%20comparative%20advantage%20of%20the%20Malaysian%20food%20processing%20industry.pdf |
| _version_ | 1825945960940830720 |
|---|---|
| author | Ismail, Mohd Mansor Sidique, Shaufique Fahmi Radam, Alias |
| author_facet | Ismail, Mohd Mansor Sidique, Shaufique Fahmi Radam, Alias |
| author_sort | Ismail, Mohd Mansor |
| collection | UPM |
| description | Scheduled liberalization of trade preferences under the World Trade Organisation and the Asean Free Trade Area has heightened the challenges faced by the Malaysian food producers. To penetrate a wider range of markets, Malaysian food processors have to identify food sub-sectors that are internationally competitive. These sub-sectors should not only withstand internal shocks but also external shocks such as the financial crisis in 1997. This article examines the levels of benefit-cost ratios for various productions of food products to analyze the comparative advantages before and after the 1997 financial crisis. The competitiveness of the food processing industry in Malaysia was determined using the Domestic Resource Cost (DRC) method. Twenty food sectors were assessed using the Malaysian food production and trade data from 1985 to 2001. Processed foods with a high comparative advantage sustained after the crisis can be considered as viable to compete with foreign products in domestic and overseas markets. Meat products in import substitutions, palm oil, kernel oil, sago and tapioca, and cocoa in traditional exports and fish products in emerging exports are examples of food sub-sectors that are gaining competitiveness in the post crisis period. |
| first_indexed | 2024-03-06T07:39:40Z |
| format | Article |
| id | upm.eprints-17185 |
| institution | Universiti Putra Malaysia |
| language | English English |
| last_indexed | 2024-03-06T07:39:40Z |
| publishDate | 2008 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia. |
| record_format | dspace |
| spelling | upm.eprints-171852015-10-01T07:52:48Z http://psasir.upm.edu.my/id/eprint/17185/ The impact of external shocks on the comparative advantage of the Malaysian food processing industry. Ismail, Mohd Mansor Sidique, Shaufique Fahmi Radam, Alias Scheduled liberalization of trade preferences under the World Trade Organisation and the Asean Free Trade Area has heightened the challenges faced by the Malaysian food producers. To penetrate a wider range of markets, Malaysian food processors have to identify food sub-sectors that are internationally competitive. These sub-sectors should not only withstand internal shocks but also external shocks such as the financial crisis in 1997. This article examines the levels of benefit-cost ratios for various productions of food products to analyze the comparative advantages before and after the 1997 financial crisis. The competitiveness of the food processing industry in Malaysia was determined using the Domestic Resource Cost (DRC) method. Twenty food sectors were assessed using the Malaysian food production and trade data from 1985 to 2001. Processed foods with a high comparative advantage sustained after the crisis can be considered as viable to compete with foreign products in domestic and overseas markets. Meat products in import substitutions, palm oil, kernel oil, sago and tapioca, and cocoa in traditional exports and fish products in emerging exports are examples of food sub-sectors that are gaining competitiveness in the post crisis period. Faculty of Economics and Management, Universiti Putra Malaysia. 2008 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/17185/1/The%20impact%20of%20external%20shocks%20on%20the%20comparative%20advantage%20of%20the%20Malaysian%20food%20processing%20industry.pdf Ismail, Mohd Mansor and Sidique, Shaufique Fahmi and Radam, Alias (2008) The impact of external shocks on the comparative advantage of the Malaysian food processing industry. International Applied Economics and Management Letters, 1 (1). pp. 53-57. http://econ.upm.edu.my/iaeml/vol1no1/bab10.pdf Food industry and trade - Malaysia. Food industry and trade - Economic aspects - Malaysia. English |
| spellingShingle | Food industry and trade - Malaysia. Food industry and trade - Economic aspects - Malaysia. Ismail, Mohd Mansor Sidique, Shaufique Fahmi Radam, Alias The impact of external shocks on the comparative advantage of the Malaysian food processing industry. |
| title | The impact of external shocks on the comparative advantage
of the Malaysian food processing industry. |
| title_full | The impact of external shocks on the comparative advantage
of the Malaysian food processing industry. |
| title_fullStr | The impact of external shocks on the comparative advantage
of the Malaysian food processing industry. |
| title_full_unstemmed | The impact of external shocks on the comparative advantage
of the Malaysian food processing industry. |
| title_short | The impact of external shocks on the comparative advantage
of the Malaysian food processing industry. |
| title_sort | impact of external shocks on the comparative advantage of the malaysian food processing industry |
| topic | Food industry and trade - Malaysia. Food industry and trade - Economic aspects - Malaysia. |
| url | http://psasir.upm.edu.my/id/eprint/17185/1/The%20impact%20of%20external%20shocks%20on%20the%20comparative%20advantage%20of%20the%20Malaysian%20food%20processing%20industry.pdf |
| work_keys_str_mv | AT ismailmohdmansor theimpactofexternalshocksonthecomparativeadvantageofthemalaysianfoodprocessingindustry AT sidiqueshaufiquefahmi theimpactofexternalshocksonthecomparativeadvantageofthemalaysianfoodprocessingindustry AT radamalias theimpactofexternalshocksonthecomparativeadvantageofthemalaysianfoodprocessingindustry AT ismailmohdmansor impactofexternalshocksonthecomparativeadvantageofthemalaysianfoodprocessingindustry AT sidiqueshaufiquefahmi impactofexternalshocksonthecomparativeadvantageofthemalaysianfoodprocessingindustry AT radamalias impactofexternalshocksonthecomparativeadvantageofthemalaysianfoodprocessingindustry |