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Jurnal Ekonomi Malaysia

56 (1) 2022 15 – 31

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

School of Business and Economics
Universiti Putra Malaysia
43400 UPM Serdang , Selangor
MALAYSIA.

thinkpositive84@hotmail.com

School of Business and Economics
Universiti Putra Malaysia
43400 UPM Serdang, Selangor
MALAYSIA.

lawsh@upm.edu.my

School of Business and Economics
Universiti Putra Malaysia
43400 UPM Serdang, Selangor
MALAYSIA.

wazman@upm.edu.my

School of Business and Economics
Universiti Putra Malaysia
43400 UPM Serdang, Selangor
MALAYSIA.

mhdkhair@upm.edu.my

Faculty of Economics and Administration
Universiti Malaya
50603 Kuala Lumpur
MALAYSIA.

ltgoh@um.edu.my

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; economic growth; FMOLS; High technology; Malaysia; technological innovation

JEL Codes

F14, F62, O11, O32
http://dx.doi.org/10.17576/JEM-2022-5601-02
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Leonard Lam, F. L., Law, S. H., Azman-Saini, W. N. W., Khair-Afham, M. S. M., & Goh, L. T. (2022). High Technology Trade, Innovation and Economic Growth: Evidence from Aggregate and Disaggregate Trade Products. Jurnal Ekonomi Malaysia, 56(1), 15–31. http://dx.doi.org/10.17576/JEM-2022-5601-02

@article{lam2022high,
  title={High Technology Trade, Innovation and Economic Growth: Evidence from Aggregate and Disaggregate Trade Products},
  author={Leonard Lam, Fong Litt and Law, Siong Hook and Azman-Saini, W. N. W. and Khair-Afham, M. S. M. and Goh, Lim Thye},
  journal={Jurnal Ekonomi Malaysia},
  volume={56},
  number={1},
  pages={15—31},
 

year={2022},
}

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