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    SME Internationalization through Global Value Chains and Free Trade Agreements: Malaysian Evidence

    Arudchelvan, Menaka; Wignaraja, Ganeshan | February 2015
    Abstract
    Growing internationalization of firms in Asia through participation in global value chains (GVCs) and free trade agreements (FTAs) has focused attention on small and medium-sized enterprises (SMEs). Yet there is scant literature on the characteristics of SMEs involved in GVCs and FTAs. Malaysia is reputed for its engagement in GVCs and is actively pursuing FTAs. Drawing on a survey of Malaysian enterprises, this paper examines the characteristics of SMEs in GVCs and FTAs and explores the policy implications. It finds that even among SMEs, firm size matters for participation in GVCs and FTAs. But size is not the whole story for SME internationalization. Licensing of foreign technology and investment in research and development are also positively associated with SMEs joining GVCs. Furthermore, increased exposure to international trade, knowledge of FTA provisions and central location positively affects the use of FTAs by SMEs. More business support for SMEs can help them to engage in GVCs and FTAs.
    Citation
    Arudchelvan, Menaka; Wignaraja, Ganeshan. 2015. SME Internationalization through Global Value Chains and Free Trade Agreements: Malaysian Evidence. © Asian Development Bank Institute. http://hdl.handle.net/11540/9633.
    Keywords
    Development
    Trade
    Development Goals
    Skills Development
    Sustainable Development
    Trade Flows
    Trade And Development
    Food Security And Trade
    Trade Volume
    Trade Potential
    Trade Flows
    External Trade
    Industrial policy
    New technology
    Innovations
    Industry
    Export policy
    Import policy
    Trade Unions
    Natural Resources
    Services Trade
    SMEs
    Development assistance
    ADB
    Curriculum development
    Development assistance
    Development aid
    Development indicators
    Development potential
    Development models
    Project appraisal
    Performance appraisal
    Regional development bank
    Trade development
    Import volume
    Export volume
    Service industry
    Capital
    Business
    Communication in rural development
    Social participation
    Occupational training
    Partnership
    Joint venture
    System analysis
    Labor and globalization
    Labor policy
    Regional trading blocs
    Foreign trade and employment
    Developing countries
    Industrial priorities
    Technological innovation
    Technology transfer
    Foreign trade regulation
    Industrial relations
    Trade-unions
    Small business
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    Citable URI
    http://hdl.handle.net/11540/9633
    Metadata
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    adbi-wp515.pdf (456.5Kb)
    Author
    Arudchelvan, Menaka
    Wignaraja, Ganeshan
    Theme
    Development
    Trade
     
    Copyright 2016-2020 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2020 Asian Development Bank Institute, except as explicitly marked otherwise