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FACTORS SHAPING MALAYSIA'S MANUFACTURING PRODUCTIVITY GROWTH

FACTORS SHAPING MALAYSIA'S MANUFACTURING PRODUCTIVITY GROWTH Productivity indicators within the Malaysian manufacturing sector for the period of 1970–2001 were compared. Two variation models were generated from the production functions to measure manufacturing sector productivity growth. The first model is an extensive growth theory model and the second is an intensive growth theory model. The extensive theory model had a gap that cast doubt in the results. A statistical analysis was provided to close this gap. The results show a slowdown in the contribution of Total Factor Productivity (TFP) growth and low growth of labor productivity of the sector. A negative impact of quality of inputs used by the sector was observed in the contribution of TFP, TFP per unit of labor and labor productivity growth in comparison with other productivity indictors of the sector. The study finds that productivity growth of Malaysia's manufacturing sector is input-driven rather than TFP-driven. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Singapore Economic Review World Scientific Publishing Company

FACTORS SHAPING MALAYSIA'S MANUFACTURING PRODUCTIVITY GROWTH

The Singapore Economic Review , Volume 54 (02): 14 – Jun 1, 2009

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References (26)

Publisher
World Scientific Publishing Company
Copyright
Copyright ©
ISSN
0217-5908
eISSN
1793-6837
DOI
10.1142/S0217590809003240
Publisher site
See Article on Publisher Site

Abstract

Productivity indicators within the Malaysian manufacturing sector for the period of 1970–2001 were compared. Two variation models were generated from the production functions to measure manufacturing sector productivity growth. The first model is an extensive growth theory model and the second is an intensive growth theory model. The extensive theory model had a gap that cast doubt in the results. A statistical analysis was provided to close this gap. The results show a slowdown in the contribution of Total Factor Productivity (TFP) growth and low growth of labor productivity of the sector. A negative impact of quality of inputs used by the sector was observed in the contribution of TFP, TFP per unit of labor and labor productivity growth in comparison with other productivity indictors of the sector. The study finds that productivity growth of Malaysia's manufacturing sector is input-driven rather than TFP-driven.

Journal

The Singapore Economic ReviewWorld Scientific Publishing Company

Published: Jun 1, 2009

Keywords: Malaysia manufacturing sector productivity growth input-driven TFP

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