Agricultural trade between Malaysia and China: Competitiveness and complementarity
-
DOIhttp://dx.doi.org/10.21511/ppm.21(3).2023.39
-
Article InfoVolume 21 2023, Issue #3, pp. 483-496
- 580 Views
-
254 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The discernment of trade competitiveness and complementarity findings holds crucial implications for policymakers, facilitating the formulation and implementation of strategies conducive to fostering economic growth. This study aims to determine the latest level of competitiveness and complementarity of the agricultural trade between Malaysia and China. This investigation uses quantitative research methodologies to draw upon data extracted from the UN Commodity Trade Statistics Database, specifically employing the HS2012 (HS12) classification system from 2017 to 2019. The empirical findings illuminate significant trends. China displays a pronounced comparative advantage in exporting agricultural products classified by HS12 items 05, 13, and 16, whereas Malaysia exhibits a pronounced comparative advantage in exporting HS12 items 14, 15, 18, 19, and 21. The examination of trade dynamics unveils that HS12 item 07 demonstrates a complementary relationship in terms of China’s exports and Malaysia’s imports, while HS12 items 14, 15, and 19 exhibit complementarity from the perspective of Malaysia’s exports and China’s imports. The trade intensity index (>1) substantiates the profound interconnectedness characterizing bilateral agricultural trade ties between the two nations. The investigation uncovers inter-industry advantages within HS12 items 06, 07, 11, 14, and 16, juxtaposed with intra-industry advantages specifically about HS12 item 23. The findings provide evidence of the inherent comparative advantages prevalent within diverse agricultural product categories. Consequently, this study not only aids policymakers but also furnishes traders within Malaysia and China with strategic insights, thereby facilitating the development of plans to augment the competitive prowess within their respective agricultural sectors.
- Keywords
-
JEL Classification (Paper profile tab)Q17, Q13, F14
-
References55
-
Tables5
-
Figures0
-
- Table 1. Revealed comparative advantage (RCA) index of Malaysia’s and China’s agricultural exports (2017, 2018, and 2019)
- Table 2. TCI based on Malaysia’s exports and China’s imports, and China’s exports and Malaysia’s imports (2017, 2018, and 2019)
- Table 3. Trade intensity index (TII) based on China’s export to Malaysia and Malaysia’s export to China (2017, 2018, and 2019)
- Table 4. Grubel-Lloyd index based on agricultural trade between China and Malaysia based on HS 2012 code classification (2017, 2018, and 2019)
- Table А1. HS 2012 classification of agricultural products
-
- Al-Taie, A. H. H., Ali, F. K., & Jarallah, S. H. (2022). The effects of the trade policies on the economic growth: Empirical evidence from the economy of Iraq. International Journal of Economics and Finance Studies, 14(03), 313-327.
- Azhar, A., Elliott, R., & Milner, C. (1998). Static and dynamic measurement of intra-industry trade and adjustment: A geometric reappraisal. Weltwirtschaftliches Archiv, 134, 404-422.
- Bahmani-Oskooee, M., & Harvey, H. (2010). The J-curve: Malaysia versus her major trading partners. Applied Economics, 42(9), 1067-1076.
- Balassa, B. (1965). Trade liberalisation and “revealed” comparative advantage. The Manchester School, 33(2), 99-123.
- Bi, Y., & Shi, B. (2010). Zhong guo yu zhong ya wu guo mao yi qian li ce suan ji fen xi – Mao yi hu bu xing zhi shu yu yin li mo xing yan jiu [The analysis and testing of trade potentialities between China and Central Asia counties: Empirical study by RCA and trade gravity model]. Asia-Pacific Economic Review, 3, 47-51. (In Chinese).
- Brown, A. J. (1947). Applied Economics: Aspects of the world economy in war and peace. London: G. Allen & Unwin.
- Chandran, V. G. R., & Munusamy. (2009). Trade openness and manufacturing growth in Malaysia. Journal of Policy Modeling, 31(5), 637-647.
- Chen, J., & Xiao, C. (2004). Zhong guo yu dong meng zhu yao guo jia mao yi hu bu xing bi jiao yan jiu [A comparative study of trade complementarities between China and major ASEAN countries]. World Economy Studies, 8, 22-28+21. (In Chinese).
- Chen, X., Li, W., & Wang, Z. (2004). Wo guo chan ye nei mao yi ying xiang yin su shi zheng fen xi [An empirical analysis of factors influencing intra-industry trade in China]. World Economy Studies, 6, 48-54. (In Chinese).
- China Economic Net. (2023, January 31). Ma lai xi ya mao yi e chuang 28 nian lai xin gao [Malaysia’s trade hits a 28-year high]. (In Chinese).
- China’s Ministry of Commerce. (2022). Tu po 8000 yi! Dong meng bao chi wo guo di yi da huo wu mao yi huo ban [With over 800 billion, ASEAN maintains China’s top goods trading partner]. (In Chinese).
- Curran, L., Eckhardt, J., & Lee, J. (2021). The trade policy response to COVID-19 and its implications for international business. Critical Perspectives on International Business, 17(2), 252-320.
- Drysdale, P. (1967). Japanese Australian trade: An approach to the study of bilateral trade flows (Thesis). Australia National University.
- Fan, Q., & Li, S. (2012). Zhong guo yu dong meng nong chan pin chan ye nei mao yi shi zheng yan jiu [An empirical study on intra-industry trade of agricultural products between China and ASEAN]. World Agriculture, 6, 67-70. (In Chinese).
- Feng, Y. (2013). Zhong guo yu dong meng nong chan pin mao yi jing zheng xing yu hu bu xing yan jiu [A study on competitiveness and complementarity of agricultural trade between China and ASEAN]. Research of Agricultural Modernization, 5, 587-590. (In Chinese).
- Grubel, H. G., & Lloyd, P. J. (1971). The empirical measurement of intra-industry trade. Economic Record, 47(4), 494-517.
- Hanink, D. M., & Owusu, J. H. (1998). Has ECOWAS promoted trade among its members? Journal of African Economies, 7(3), 363-383.
- He, M., Huang, Z. Q., & Zhang, N. N. (2016). An empirical research on agricultural trade between China and “The Belt and Road” countries: Competitiveness and complementarity. Modern Economy, 7(14), 1671-1686.
- Hoang, V. (2018). Assessing the agricultural trade complementarity of the Association of Southeast Asian Nations countries. Agricultural Economics, 64(10), 464-475.
- Huajing Industry Research Institution. (2022, July 30). 2021 nian ma lai xi ya GDP, ren jun GDP, ren jun guo min zong shou ru ji chan ye zeng jia zhi tong ji [Malaysia GDP, GDP per capita, GNI per capita and industry value added statistics for 2021]. (In Chinese).
- Kojima, K. (1962). World economy and Japan’s foreign trade. Tokyo: Keisé-Shobb.
- Laursen, K. (2015). Revealed comparative advantage and the alternatives as measures of international specialization. Eurasian Business Review, 5, 99-115.
- Lv, Y. (2009). RCA fen xi bi jiao you shi li lun de you xiao xing [RCA analysis of the validity of comparative advantage theory]. Modern Business, 29, 37-38. (In Chinese).
- National Bureau of Statistics of China. (2022). 2021 nian quan guo nong ye ji xiang guan chan ye zeng jia zhi zhan GDP bi zhong wei 16.05% [National value added of agriculture and related industries as a percentage of GDP will be 16.05% in 2021]. (In Chinese).
- Neoh, S. F., & Lai, T. S. (2021). The impact of trade openness on manufacturing sector performance: Evidence from Malaysia. Journal of Economics and Sustainability, 3(1), 12-22.
- Opeida, Z. (2023). Competition and international trade: Complementing trade defense policy with effective competition policy in Ukraine. In H. Richter (Ed.), Competition and Intellectual Property Law in Ukraine (pp. 37-63). Berlin, Heidelberg: Springer.
- Petrović, P., Antevski, M., & Vesić, D. (2008). The international competitiveness and economic integration. Facta Universitatis Series: Economics and Organization, 5(1), 1-8.
- Qiu, H., Yang, J., & Huang, J. (2007). Jian li zhong guo-dong meng zi you mao yi qu dui wo guo nong chan pin mao yi he qu yu nong ye fa zhan de ying xiang [The impact of the China-ASEAN free trade area on China’s agricultural international trade and its regional development in agriculture]. Journal of Management World, 9, 56-61+75+171-172. (In Chinese).
- Ricardo, D. (1821). On the principles of political economy and taxation. London: J. Murray.
- Rivera-Batiz, L. A., & Romer, P. M. (1991). Economic integration and endogenous growth. The Quarterly Journal of Economics, 106(2), 531-555.
- Sang, B., & Yang, L. (2015). Tuo zhan wo guo yu “yi dai yi lu” guo jia de mao yi guan xi: Ji yu jing zheng xing yu hu bu xing yan jiu [China’s trading relations with the countries of “One Belt And One Road”: Based on the trade competitiveness and trade complementarities]. On Economic Problems, 8, 1-5. (In Chinese).
- Shen, K., & Li, J. (2003). Zhong guo mao yi fa zhan yu jing ji zeng zhang ying xiang ji zhi de jing yan yan jiu [An empirical study of the mechanisms affecting trade development and economic growth in China]. Economic Research Journal, 5, 32-40+56-92. (In Chinese).
- Shen, X., Tan, Z., & Wu, C. (2002). Bu tie zheng ce dui nong ye shang shi gong si de ying xiang yu tiao zheng [The impact and adjustment of subsidy policy on agricultural listed companies]. Chinese Rural Economy, 6, 20-23. (In Chinese).
- Sheng, B., & Chen, S. (2015). Quan qiu jia zhi lian ru he gai bian le mao yi zheng ce: Dui chan ye sheng ji de ying xiang he qi shi [How global value chains have changed trade policy: Implications and insights for industrial upgrading]. International Economic Review, 115(01), 85-97+6. (In Chinese).
- Shuai, C. (2009). Ji yu yin li mo xing de zhong mei nong ye mao yi qian li fen xi [Analysis of agricultural trade potential between China and the United States based on the gravity model]. Chinese Rural Economy, 295(07), 48-58. (In Chinese).
- Smith, A. (1776). An inquiry into the nature and causes of the wealth of nations. London: Methuen & Co., Ltd.
- Soh, B. H., Lim, G. T., & Chua, S. Y. (2021). Competitiveness of Malaysian fisheries exports: A constant market share analysis. Malaysian Journal of Economic Studies, 58(2), 175-198.
- Suidarma, I. M., Yliati, L., Anggaradana, I. N., & Dunia, I. N. (2017). Intra industry trade of agricultural sector commodity between Indonesia and Malaysia, Philippines and Thailand. European Journal of Business and Management, 9, 73-80.
- Sun, L., & Xu, X. (2011). Dong meng mao yi bian li hua dui zhong guo zhi zao ye chan pin chu kou ying xiang de shi zheng fen xi [Empirical analysis on impact of ASEAN trade facilitation on Chinese manufactured goods export growth]. Journal of International Trade, 8, 101-109. (In Chinese).
- Sun, Z., & Li, X. (2013). Jing ji quan qiu hua bei jing xia zhong guo yu yin du nong chan pin mao yi fa zhan yan jiu: Ji yu mao yi hu bu xing, jing zheng xing he zeng zhang qian li de shi zheng fen xi [Agricultural product trade development between China and India upon economic globalization: An empirical analysis based on trade complementarities and growth potentiality]. Journal of International Trade, 12, 68-78. (In Chinese).
- Tao, Z. (2022). Competitiveness and complementarity of agricultural products between Thailand and China on a short-term basis. Problems and Perspectives in Management, 20(3), 425-436.
- The United Nations. (n.d.). The United Nations commodity trade statistics database.
- Wang, F., Zeng, Z., & Zhang, Y. (2018). “Yi dai yi lu” jian she xia zhong guo yu ma lai xi ya nong chan pin mao yi qian li yan jiu [Study on the potential of agricultural trade between China and Malaysia under the construction of “One Belt and One Road”]. Journal of Guangxi University of Finance and Economics, 6, 43-59. (In Chinese).
- Wang, G., & Fan, C. (2006). Zhong ou mao yi hu bu xing yan jiu – Ji yu bi jiao you shi li lun he chan ye nei mao yi li lun de shi zheng fen xi [A study of trade complementarity between China and Europe – An empirical analysis based on comparative advantage theory and intra-industry trade theory]. Journal of International Trade, 3, 61-66. (In Chinese).
- Wang, X., & Wang, J. (2018). Zhong mei nong chan pin mao yi jie gou fen xi [Analysis of China-US agricultural trade structure]. Finance and Accounting for International Commerce, 8, 18-23. (In Chinese).
- Wu, J. (2012). “Jin zhuan guo jia” de mao yi hu bu xing he jing zheng xing fen xi [Competition or complementarity? An empirical study on economic relationship among “BRICS”]. International Business, 2, 21-30. (In Chinese).
- Yamazawa, I. (1970). Intensity analysis of world trade flow. Hitotsubashi Journal of Economics, 10(2), 61-90.
- Yeoh, E. K. K., Chang, L., & Zhang, Y. (2018). China-Malaysia trade, investment, and cooperation in the contexts of China-ASEAN integration and the 21st century Maritime Silk Road construction. The Chinese Economy, 51(4), 298-317.
- Yu, J. (2003). Zhong guo yu dong ya zhu yao guo jia he di qu jian de bi jiao you shi yu mao yi hu bu xing [Comparative advantages and trade complementarities between China and major East Asian countries and regions]. The Journal of World Economy, 5, 33-40+80. (In Chinese).
- Zhang, F. (2021). Competitiveness or complementarity: Analysis of agricultural trade between China and Brazil. Problems and Perspectives in Management, 19(4), 258-269.
- Zhang, H., & Tang, H. (2017). Zhong guo yu “yi dai yi lu” yan xian di qu de mao yi lian xi wen ti yan jiu – ji yu mao yi qiang du zhi shu mo xing de fen xi [A study of trade relationship between China and the areas along the Belt and Road Initiative based on trade intensity index model]. International Economics and Trade Research, 33(03), 27-40. (In Chinese).
- Zhang, P., & Xu, C. (2007). Gan yu yi huo bu gan yu? – Wei rao zheng fu chan ye zheng ce you xiao xing de zheng lun [To intervene or not to intervene? A debate on the effectiveness of government industrial policy]. Comparative Economic & Social Systems, 132(04), 28-35. (In Chinese).
- Zhang, Y., & Xu, P. (2003). Zhong guo yu dong meng mao yi jing zheng li ji mao yi xiang si du de shi zheng fen xi [An empirical analysis of China-ASEAN trade competitiveness and trade similarity]. The Theory and Practice of Finance and Economics, 6, 85-88. (In Chinese).
- Zhao, C. (2014). Dongmeng guo jia jian de mao yi zheng ce yan bian ji qu shi – Ji yu quan qiu yu qu yu jing ji yi ti hua jin cheng de hui gu yu fen xi [Evolution and future trends of the trade policy among ASEAN countries – Based on review and analysis of the global and regional economic integration]. Frontiers, 21, 68-73. (In Chinese).
- Zhu, J., & Chen, X. (2006). Zhong yin nong chan pin mao yi hu bu xing ji mao yi qian li fen xi [Analysis of complementarity and trade potential of China-India agricultural trade]. Journal of International Trade, 1, 40-46. (In Chinese).