Technological Intensity of Exports in East Asia

This chapter focuses on the technological complexity of exports within East Asia, particularly spotlighting middle-income nations in Southeast Asia that have grappled with stagnating economic growth. Our research findings underscore the necessity of enhancing the technological sophistication of exports to fuel steady economic expansion. The analysis delves into the domestic content of exports, segmenting exports across different tiers, since relying solely on the export proportion of cutting-edge products might not offer an accurate representation owing to the strides in vertical specialization. Thus, a discernible pattern emerges wherein the proportion of foreign content in exports tends to rise in tandem with the technological caliber of the exported goods. This trend is especially pronounced in Southeast Asian nations like Malaysia and Thailand. A granular breakdown of exports from sectors like semiconductors and pharmaceuticals reveals that such industries in Malaysia and Thailand predominantly feature substantial Asian content. Concurrently, there is a marked reliance on intermediary goods sourced chiefly from Northeast Asian territories.