Document Type

Journal Article

Publication Date

1992

Keywords

Investment, Capital intensity, Capital subsidies, Industry group

DOI

10.1080/00220389208422253

Abstract

Most developing countries provide fiscal incentives to encourage domestic and foreign investment. This study shows that these schemes subsidise significantly the use of capital and produce greater capital intensity in Malaysian manufacturing. These results were obtained by conducting the analysis at the establishment level, which avoids the artificial aggregation of establishments with different production structures into an industry‐group and having to choose an appropriate weighting system in the aggregation process.

Source Publication

The Journal of Development Studies

Volume Number

28

Issue Number

4

ISSN

0022-0388

First Page

705

Last Page

716