High Technology Trade, Innovation and Economic Growth: Evidence from Aggregate and Disaggregate Trade Products

Fong Litt Leonard Lam (), Siong Hook Law, W.N.w Azman-Saini, M. S. M. Khair-Afham () and Lim Thye Goh
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Fong Litt Leonard Lam: School of Business and Economics Universiti Putra Malaysia 43400 UPM Serdang , Selangor MALAYSIA.
M. S. M. Khair-Afham: School of Business and Economics Universiti Putra Malaysia 43400 UPM Serdang, Selangor MALAYSIA.

Jurnal Ekonomi Malaysia, 2022, vol. 56, issue 1, 15-31

Abstract: This study evaluates the effect of high-technology trade on economic growth in an emerging economy, using quarterly data from 1990 until 2018. The role of innovation in moderating the high technology trade - economic growth nexus also emphasize. The empirical findings based on the autoregressive distributed lag (ARDL) approach reveal that high-tech trade, foreign direct investment and physical capital stock are statistically significant determinants of economic growth. The innovation must be presence to support or moderate the effect of high-tech industry on economic growth. Moving into subsector, the findings indicate that the development of machinery and transport equipment, mineral fuels and lubricants, manufactured goods and chemical sectors are crucial as the niche areas of focus for policy design and resource allocation. The results are robust using the fully modified ordinary least squares (FMOLS) estimation.

Keywords: ARDL; FMOLS; High technology; Malaysia; economic growth; technological innovation (search for similar items in EconPapers)
JEL-codes: F14 F62 O11 O32 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ukm:jlekon:v:56:y:2022:i:1:p:15-31

DOI: 10.17576/JEM-2022-5601-02

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