The paper 'Industrialization in Malaysia-Import Substitution and Infant Industry Performance' is a perfect example of a Macro and Microeconomics Case Study. Malaysia as a country consists of thirteen states with one federal in each state. The total landmass for the country is 329,847 square kilometers. To the south, Malaysia is separated by the South China Sea with two regions namely; the peninsular Malaysia and Malaysian Borneo. It borders Thailand, Indonesia, and Brunei with maritime borders such as Singapore and Vietnam. The capital city for Malaysia is known as Kuala Lumpur. The Malaysian population is approximately 28.5 million (Radelet and Jeffrey 63). Managerial economicsManagerial economics is the study of various economic factors such as gross domestic product, gross national product, consumer price index and inflation rate, per capita income and unemployment, and how are applied by an economy to make important macroeconomic policies of a country (Doraisami 233).
This report will use the case of Malaysia as one of the upper-middle-income countries in Asia to see how they have been used to see Malaysia be where it's now economically. Gross domestic product (GDP)In the case of Malaysia, the gross Domestic Product (GDP) for Malaysia expanded by over 1.5 percent in the fourth quarter of the financial year 2010 when compared with the previous year 2009 (Ministry of Finance, Malaysia).
For the last four years starting from 2007 to 2010, the average growth rate of Malaysian GDP, has been found to be 1.20 percent for every quarter. Malaysia being an upper-middle-income country has kept developing and now is among the great economies in Asia (Ministry of Finance, Malaysia). It has undergone several transformations since the 1970s when it primarily dealt with the production of raw materials to a greater multi-industry economy.
Figure 1 below is a graph showing the percentage growth of the GDP for every quarter for each year starting in 2007.In reference to the graph above showing the percentages of Malaysian GDP, the GDP has continued to grow since the year 2007, except in the following quarters; the first quarter of 2007, the first quarter of 2008, the first and the second quarters of 2009 and first quarter of 2010 (Ministry of Finance, Malaysia).
It's clear that the economy of Malaysia has been doing well in the last quarter of the year when compared with the first quarter and this can be attributed to the influx of foreigners.
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