Economic corridors and regional development: The Malaysian experience. (June 2018)

• Record Type: Journal Article
• Authors: Athukorala, Prema-chandra; Narayanan, Suresh
• Is Part Of: World development. Volume 106(2018)
• Page Start: 1
• Page End: 14
• Publication Date: 2018-06
• Subjects: O18 -- O21 -- O53; Economic corridor -- Regional development -- Malaysia; Economic history -- 1990- -- Periodicals; Economic assistance -- Developing countries -- Periodicals; 330.9
• DOI: 10.1016/j.worlddev.2018.01.009
• Languages: English
• ISSNs: 0305-750X

Abstract

Highlights: The role of economic corridors in sub-regional economic development. The key elements of an economic corridor development program. The challenge of embodying infrastructure development within an equitable corridor development strategy. Political economy of corridor design and governance under a federal system of government. Policy options for realising potential development gains from the Northern Economic Corridor in Malaysia. Abstract: This paper examines prerequisites for a successful inter-state economic corridor development program in a country with a federal system of government through an in-depth study of the design, implementation and the developmental impact of the Northern Corridor Economic Region (NCER) in Malaysia that encompasses the states of Penang, Kedah, Perak and Perlis. The analysis suggests that the NCER has the potential to leverage on the core strengths of the state of Penang—global connectivity, mature business eco-system with a strong presence of multinational enterprises, and sizeable talent pool—in order to redress the widening inter-regional and urban–rural development divide. However, so far, the achievements have not matched the expectations primarily because of an inherent institutional limitation of the program: failure to constitute the Northern Corridor Implementation Authority (NCIA) with adequate power and operational flexibility to achieve the overarching goal of shared growth while ensuring compliance from all stakeholders.