Historical Institutionalism and Economic Diversification: The Case of Malaysia

Abdillah Noh


This paper argues that Malaysia’s ability to diversify its economy and not be overly reliant on natural resource is due to the state’s institutional character and its historical process. Malaysia’s ability to avoid the resource curse rests on two factors. First, the path dependent nature of Malaysia’s economic arrangement - the prior existence of a thriving private sector and the late entry of commercial oil production and – provides the state with increasing returns to economic diversification. Second, Malaysia’s consociational arrangement imposes limits on policy options, giving the state little choice but to continue to adopt economic diversification strategies to keep to consociationalism’s distributive qualities.

Full Text:


DOI: http://dx.doi.org/10.5539/ass.v10n9p40

Asian Social Science   ISSN 1911-2017 (Print)   ISSN 1911-2025 (Online)

Copyright © Canadian Center of Science and Education 

To make sure that you can receive messages from us, please add the 'ccsenet.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.