Since 2014
Foreign Presence and Market Concentration in Malaysian Manufacturing Industries
Jurnal Ekonomi Malaysia
View Archive Info| Field | Value | |
| Title |
Foreign Presence and Market Concentration in Malaysian Manufacturing Industries
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| Creator |
Adam, Radziah
Khalifah, Noor Aini |
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| Description |
ABSTRACTThis paper examines the relationship between foreign presence and market concentration and thus competition in the Malaysian manufacturing sector by looking at the determinants of foreign presence and market concentrationrespectively. Using a panel of aggregate 5-digit Malaysian manufacturing industries for 2001-04, different extentsand proxies of foreign presence are utilized to test the hypothesis that higher foreign presence leads to moreconcentrated market. The single equation results show that foreign presence, in terms of fixed assets share, has nosignificant impact on increasing the level of market concentration, while higher foreign presence in an industry, in regards to both value added and employment shares, significantly contributes towards more concentrated markets. On the other hand, a highly concentrated market is also one of the significant determinants for all proxies of foreign presence. In both instances, the extent of foreign shareholdings does not matter as much as the types of proxy used to measure foreign presence. However, a system of four equations, including market concentration (under the Structure- Conduct-Performance framework) and foreign presence, estimated using Two-Stage Least Squares (2SLS) with fixed effects shows no significant evidence to support the existence of simultaneity between market concentration and foreign presence.Keywords: Competition; foreign presence; market concentrationABSTRAKKajian ini melihat hubungan langsung antara kehadiran pelabur asing dan penumpuan pasaran serta persaingandalam sector pembuatan di Malaysia dengan merujuk kepada model penentu masing-masing. Berdasarkan set data panel industri 5-digit untuk tempoh 2001-04, tahap ukuran serta proksi kehadiran pelabur asing yang berbezadigunakan dalam model komprehensif penentu struktur pasaran untuk menguji hipotesis bahawa kehadiran pelabur asing cenderung untuk meningkatkan penumpuan pasaran industry. Keputusan persamaan tunggal menunjukkan bahawa kehadiran pelabur asing melalui proksi syer nilai tambah serta guna tenaga merupakan salah satu faktor penting peningkatan penumpuan pasaran. Sebaliknya, syer harta tetap asing didapati tidak signifikan dalam mempengaruhi penumpuan pasaran. Sebaliknya, model penentu kehadiran pelabur asing turut menunjukkan peranan penting yang dimainkan oleh penumpuan pasaran. Kedua-dua model persamaan tunggal ini mendapati keputusan penganggaran tidak dipengaruhi oleh ukuran tahap kehadiran pelabur asing yang berbeza. Manakala penggunaan kaedah Gandaan Kuasa Dua Terkecil Dua Peringkat (2SLS) dengan kesan tetap untuk penganggaran set persamaan serentak melalui pendekatan Struktur-Gelagat-Prestasi mendapati tidak wujud hubungan keserentakan antara pembolehubah kehadiran pelabur asing dan penumpuan pasaran.Kata kunci: persaingan; kehadiran asing; penumpuan pasaran
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| Publisher |
Universiti Kebangsaan Malaysia
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| Contributor |
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| Date |
2012-10-30
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article — |
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| Format |
application/pdf
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| Identifier |
http://ejournal.ukm.my/jem/article/view/1359
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| Source |
Jurnal Ekonomi Malaysia; Vol 46, No 1 (2012): Jurnal Ekonomi Malaysia
0126-1962 |
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| Language |
eng
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| Relation |
http://ejournal.ukm.my/jem/article/view/1359/1218
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