Malaysia-China Network Trade: A Note on Product Upgrading

Evelyn Devadason

Research output: Working paperResearch

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The paper addresses the importance of network trade between Malaysia and China and assesses the extent of product upgrading in components traded. The study brings to the fore the following. First, China is emerging as an important market for component imports relative to component exports. As such the increase in two-way flows of parts and components for further processing and development, implying a shift away from assembly-end operations, remains insignificant. Second, network trade appears to have improved the quality of exports (reflecting the ‘moving up of the value chain’) destined to China, but the gaps between the unit values of export and imports have narrowed in the recent past, implying less product development.
Original languageEnglish
Place of PublicationFrederiksberg
PublisherAsia Research Centre. Copenhagen Business School
Number of pages25
Publication statusPublished - Oct 2007
Externally publishedYes
SeriesCopenhagen Discussion Papers

Bibliographical note

Paper presented at the International ChinaWorld Conference at the Institute of China Studies, University ofMalaya, "Implications of a Transforming China: Domestic, Regional and Global Impacts", on 5-6 August 2007


  • Network trade
  • Two-way trade
  • Unit values
  • Relative unit values
  • Product upgrading

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