TRADE IN VALUE ADDED: MULTIPLIER DECOMPOSITION

This study presents findings on the analysis of Trade in Value Added (TIVA) using multiplier decomposition. Multiplier decomposition method is an analytical tool used to analyse the economic spillover effect within Malaysia and among Malaysia’s trading partner countries.

This method disaggregates the intraregional and interregional spillover as well as feedback effects from a change of final demand on a particular sector in Malaysia. Multi Regional Input-Output (MRIO) released by Asian Development Bank (ADB) for reference year 2015 - 2019 is being used for the purpose of this analysis.