Trade Costs in Malaysia: Pattern and Challenges

  • Wai-Heng Loke University of Malaya
  • Siew-Yean Tham Universiti Kebangsaan Malaysia


Transportation costs have been shown to affect international trade, both in theory and empirical evidence. It is an important component of trade costs. As tariff barriers have been progressively lowered through unilateral, regional as well as multilateral efforts over the years, non tariff trade costs, which include transportation, play an increasingly important role in affecting a country's trade. The purpose of this paper is two-fold: (i) to profile and analyse trade costs in Malaysia using available data, and (ii) to ascertain the main challenges faced in lowering trade costs in the country. The study covers the period from 1996 - 2009 with a focus on Malaysia's exports to the US and Australia.


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Author Biographies

Wai-Heng Loke, University of Malaya

Faculty of Economics and Administration, University of Malaya

Siew-Yean Tham, Universiti Kebangsaan Malaysia

Institute of Malaysia and International Studies (IKMAS), Universiti Kebangsaan Malaysia

How to Cite
LOKE, Wai-Heng; THAM, Siew-Yean. Trade Costs in Malaysia: Pattern and Challenges. Malaysian Journal of Economic Studies, [S.l.], v. 47, n. 2, p. 143-163, june 2017. ISSN 1511-4554. Available at: <>. Date accessed: 24 june 2019.