Ownership and the Autoparts industry in Asia

This paper compares the relationships between export orientation and technological intensities in auto part firms in East and Southeast Asia. The findings show that the relationship between export intensity and technological intensity are different depending on the ownership of the firms.

Title of paper: Export Orientation and Technological Intensities in Auto Parts Firms in East and Southeast Asia: Does Ownership Matter?
Author: Rajah Rasiah
Contact details of Author: Faculty of Economics and Administration University of Malaya 50603 Kuala Lumpur, Malaysia

This paper examines the statistical relationships involving export intensity, embedding environment, and three types of technological intensity (human resource intensity, process technology intensity, and research and development intensity). The embedding environment measures the degree of infrastructure support for innovation. The sample consists of auto parts firms in China, Indonesia, Korea, Malaysia, The Philippines, Taiwan, and Thailand. For the local sample, export intensity and the embedding environment are positively significant for the three technological intensities. For the foreign sample, export intensity and embedding environment are positively significant only for the research and development intensity. The strong positive relationship between foreign ownership and export intensity shows that foreign firms enjoy greater access in export markets.

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