A study of factor determinants of Malaysia high technology export: analysis of Granger causality model / Siti Muslihah Sharir

Owing to intense competition by global development, nations that aspire to excel and develop in all sectors need to develop the appropriate capabilities in order to stay competitive in marketplace, for instance high tech sector. Intense development in high tech sector activities provide nations with the platform for developing capability to achieve superior performance in the marketplace. However, in a developing economy such as Malaysia, the determinants of high technology export performance as endogenous variable is yet to be examined empirically. To obtain a deeper understanding, GDP per capita, Foreign Direct Investment and Patent are presented as exogenous variable. This study is conducted by using data from the year 1988 to 2015 by using Granger Causality and Johansen Cointegration method. The empirical results indicate that High-tech export have unidirectional causality with GDP per capita and FDI. Moreover the exporting performance of using external technology varies depending on the their sources (domestic and foreign). Results of this research also indicate there is long run equilibrium between variables of the factor determinants of Malaysia high tech export. Limitations of this study as well as implications of the findings are ultimately highlighted. This study thus aims to extend our understanding of the determinants of high tech export performance by examining the short run and long run relationship between variable and how does the variables cause to each other.