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The Leap of the Tiger: How Malaysia Can Escape the Middle-Income Trap
Author:
Reda Cherif
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and
Fuad Hasanov
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Series:
IMF Working Papers
Volume/Issue:
Volume 2015: Issue 131
Language:
English
Publication Date:
23 Jun 2015
DOI:
https://doi.org/10.5089/9781513556017.001
ISBN:
9781513556017
ISSN:
1018-5941
Pages:
27
Keywords:
WP; invested company share; electronics firm; firm Hyundai; spin-off firm; firm development; growth; middle-income trap; innovation; productivity; technology; global brand; firms in the electronics sector; local firm; auto parts firm; government intervention; Exports; Income; Manufacturing; Global; Asia and Pacific
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Only a few European economies and Korea and Taiwan Province of China reached high-income status during 1970-2010. Malaysia’s real income per capita increased to 26 percent of the U.S. level in 2010 from 20 percent in 1970. Despite relatively strong growth and a substantial improvement in export sophistication, Malaysia’s total factor productivity lagged behind that of Korea and Taiwan Province of China. We argue that what characterizes their experience in contrast to Malaysia’s is the creation of technologies by domestic firms and a push to leapfrog to the technological frontier at an early stage of development.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund