The nexus of agricultural exports and performance in Malaysia: a dynamic panel data approach

Abstract

PurposeThe paper examines the nexus between agricultural exports and the performance of agricultural firms in Malaysia.Design/methodology/approachThe dynamic linkage is tested by using system GMM models and the period ranges from 2002 to 2016.FindingsThe results indicate that agricultural exports affect performance positively. However, agricultural raw materials have no significant impact on performance.Research limitations/implicationsThe agricultural exports in relation to sectoral performance needs to be considered in the future.Practical implicationsThe findings are important for policymakers to formulate policies that promote the agricultural sector. To put it differently, the policies may encourage investments in this sector. Also, the findings have substantial academic implications, bridging the gap between theory and empirical literature in the agricultural sector.Originality/valueThis work highlights the agricultural exports and their impacts on a firm's performance.