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The determinants of non-tariff barriers in Malaysia’s manufacturing sector

Hanif, Azlina and Alavi, Rokiah and Mat Ghani, Gairuzazmi and Duasa, Jarita (2011) The determinants of non-tariff barriers in Malaysia’s manufacturing sector. In: 2011 International Conference on Economics and Business, 7-9 May 2011, Bangkok, Thailand.

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The successive rounds of multilateral trade negotiations have resulted in significant tariff reductions in many countries. Malaysia is no exception as its trade weighted average tariff rate in 2008 is relatively low at 6.3 percent. Despite the reduction in tariff barrier, the incidence of non-tariff barriers (NTBs) in the country’s manufacturing sector is still prevalent especially in certain sub-sectors even though efforts at dismantling these barriers have long been initiated. Thus, the paper seeks to identify factors that influence the level of NTBs in the manufacturing sector. Using the autoregressive distributed lag (ARDL) approach to cointegration, we find sectoral competitiveness level to be the only significant determinant of NTBs in the long run. In the short run, tariff and sectoral competitiveness both influence the level of NTBs. The findings provide a greater understanding of the reasons behind trade protectionism in the country’s manufacturing sector.

Item Type: Conference or Workshop Item (Full Paper)
Additional Information: 438/24108 (IPEDR vol.9 (2011) © (2011) IACSIT Press, Bangkok, Thailand)
Uncontrolled Keywords: non-tariff barriers; manufacturing sector; trade protectionism; developing country
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD72 Economic growth, development, planning
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences
Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User: DR ROKIAH ALAVI
Date Deposited: 16 May 2012 08:50
Last Modified: 16 May 2012 08:56
URI: http://irep.iium.edu.my/id/eprint/24108

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