The impact of technological progress on structural transformation trends in developing countries "Malaysia as an Model"

Abstract

The topic of structural transformation and analysis of the economic structure and its changes is one of the main issues for those interested in studying economic development, because the analysis of structural transformation reflects in real terms the extent of development achievements made by developing countries in particular during recent decades. Proceeding from this, the research aims to analyze and measure the relationship between structural transformation and technological progress in the Malaysian economy during the period 1980-2017, based on the hypothesis that there is a positive significant effect of technological progress on structural transformation and its trends in Malaysia during that period. The descriptive approach was used. The research concluded that a set of results and proposals based on its analytical contents and the outputs of its estimated model were established, the most important of which was to demonstrate a positive significant effect of technological progress variables in the structural transformation variables during the period of the research. As these variables were able to explain more than 50% of the changes taking place in the structure transformation variables in the Malaysian economy. Based on that, the research proposes to enhance economic growth based on factors of technological progress by diversifying the industrial and technological base and expanding it in Malaysia by supporting and encouraging industries with high added value and its exports and revive of regional trade.