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  • Publication
    Export-Led Growth theory: Malaysian timber industry
    ( 2013-06)
    Noor Aini Zakaria
    ;
    Hazmira Merous
    ;
    ;
    Adibah Hussin
    Malaysia is one of the world’s largest exporters of tropical timber and timber products with export destinations to 160 countries. In 2008, the timber industry was the fifth largest contributor with contribution of 3.3 percent to total export earnings of Malaysia. Among commodities, timber industry shared about 20.3 percent of the export earnings. The major exports of primary products are saw logs, sawn timber, fibre board and plywood. Secondary processed wood products are furniture, builders’ joinery and carpentry together with mouldings. Given the contribution of Malaysian timber sector to Malaysian economy, this study sets to assess the experience of timber industry in Malaysia to provide support for export led growth (ELG) hypothesis. This study employs yearly data of real GDP and real export of timber products for the period 1979-2008 using Granger Causality approach. Cointegration test using Johansen approach evidenced the existence of long-run relationship between export and GDP of timber products. Furthermore, Granger causality proves that export led growth for Malaysian timber industry.