This article seeks to broaden our understanding of the phenomenon of global production sharing and to explore policy options for developing countries for engaging effectively in production networks, through a case study on the export production hub in the State of Penang, Malaysia. The findings uphold Penang as a unique example of marrying development strategy with emerging opportunities for global production sharing. The state government of Penang has not only attracted major multinational enterprises in the global electronics industry but also helped them become deeply rooted in the economy through a well-designed investment promotion and development strategy.
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