Spatial network analysis and determinants of Malaysia’s export performance
List of Authors
  • Rozilee Asid , Yeo Soon Jian

Keyword
  • Special Network Analysis, SFA, Export, GIS, Network Density

Abstract
  • As one of the key drivers of economic growth, Malaysia's declining goods export growth and its increasing dependence on a few major trading partners raise concerns about the country's exports being more vulnerable to external shocks. A deeper and more detailed understanding of Malaysia's export spatial network dynamic and its determinants was crucial to ensuring sustainable growth, reducing vulnerability to external shocks, and enhancing Malaysia's export competitiveness. We employed network analysis and Stochastic Frontier Analysis (SFA) to examine Malaysia's products export evolution, determinants and its efficiency score across 208 countries over 31 years. The finding revealed increased global trade integration followed by a recent decline due to trade tensions and the COVID-19 pandemic. Network analysis highlighted shifts in trade complexity, with key trading partners maintaining or gaining prominence in Malaysia's export network. The Geographic Information System (GIS) mapping pointed out Malaysia's strategic positioning within the global trade network, offering insights into export performance and efficiency. High network density indicates that the high diversity of trading partners allows a country to diversify its sources of imports and reduce reliance on a single country or supplier. We underscore the importance of diversifying trading partners to mitigate risks and enhance Malaysia's resilience to global economic challenges.

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