Back to Basics in Malaysia and Thailand : The Role of Resource-Based Exports in Their Export-Led Growth

Malaysia and Thailand's remarkable economic growth in recent decades has been widely attributed to rapid growth of their labor-intensive manufactured exports. This paper demonstrates the important role that resource-based products, especially simply processed goods, have played in their export growth. While exports have thus followed their dual static comparative advantage in abundant resources and unskilled labor, there has been limited movement into higher-end exports. A dual strategy of supporting forward linkages into higher value-added resource-based industries while continuing to encourage the development of backward linkages from the non-resource based manufactures is suggested. Keyword(s): Asia, Malaysia, Thailand, exports, growth, resource-based industries