Global productions sharing and local entrepreneurship in developing countries: Evidence from Penang export hub, Malaysia

Prema-chandra Athukorala

Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics

Abstract: This papers examines opportunities and policy options for developing countries to promote engagement of local firms in global production networks. The paper begins with a stage-setting overview of the ongoing process of global production sharing and the emerging opportunities local firm's engagement. It then undertakes an illustrative case study of the export hub in the state of Penang in Malaysia. Forging operational links between multinational enterprises (MNEs), which set up assembly plants in Penang, and local firms was an integral part of the export-led development strategy of the state. This policy emphasis was instrumental in fostering a domestic supplier network around the operations of the MNE subsidiaries. A number of local firms, which emerged de novo through production sharing have become global players in their own right, with production bases in a number of other countries.

Keywords: globalisation; trade policy; multinational enterprises; global production networks (search for similar items in EconPapers)
JEL-codes: F21 F23 O24 O53 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2017
New Economics Papers: this item is included in nep-ent, nep-int and nep-sea
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Citations: View citations in EconPapers (10)

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Related works:
Journal Article: Global Productions Sharing and Local Entrepreneurship in Developing Countries: Evidence from Penang Export Hub, Malaysia (2017)
Working Paper: Global Productions Sharing and Local Entrepreneurship in Developing Countries: Evidence from Penang Export Hub, Malaysia (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:pas:papers:2017-01

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