Global Value Chains, Contract Manufacturers, and the Middle-Income Trap: The Electronics Industry in Malaysia

Gale Raj-Reichert

Journal of Development Studies, 2020, vol. 56, issue 4, 698-716

Abstract: The electronics industry has been a cornerstone to the successful industrialisation process in Malaysia since the 1970s. However, since the 2000s the industry, which is deeply integrated in global value chains, has failed to upgrade. Its stagnation is indicative of the general economic situation in Malaysia which has contributed to its middle-income trap. This paper argues two key factors combined have led to the electronics industry’s inability to upgrade within the global value chain. First is Malaysia’s excessive reliance on foreign investment which has contributed to a prolonged dominance of foreign firms, particularly large transnational contract manufacturers, which have maintained low-value-added production in the country. Second is the influx of low-skilled and low-waged foreign workers, which has contributed to trapping the industry in labour-intensive lower rungs of the value chain.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1080/00220388.2019.1595599 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jdevst:v:56:y:2020:i:4:p:698-716

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/FJDS20

DOI: 10.1080/00220388.2019.1595599

Access Statistics for this article

Journal of Development Studies is currently edited by Howard White, Oliver Morrissey and Ken Shadlen

More articles in Journal of Development Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().