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Plant Size, Turnover and Productivity in Malaysian Manufacturing

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  • Ergun Dogan
  • Koi Nyen Wong

Abstract

Malaysian manufacturing has an asymmetrical structure: small and medium-sized enterprises dominate in numbers, but contribute relatively little to total output, employment, and exports as compared to their larger counterparts. In light of an increasingly competitive environment arising from globalization, a sound knowledge of turnover patterns within the sector by plant size and its potential impact on aggregate productivity growth is imperative. We find that turnover, particularly of large plants, makes a substantial contribution to overall productivity growth in manufacturing. Hence, from a policy perspective, facilitating turnover might be as important as supporting existing plants in promoting aggregate productivity growth

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File URL: http://www.buseco.monash.edu.au/eco/research/papers/2010/1110plantsizedoganwong.pdf
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Bibliographic Info

Paper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 11-10.

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Length: 24 pages
Date of creation: May 2010
Date of revision:
Handle: RePEc:mos:moswps:2010-11

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Keywords: Plant turnover; plant size; productivity; manufacturing; Malaysia;

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  1. Bartelsman, Eric & Haltiwanger, John C. & Scarpetta, Stefano, 2004. "Microeconomic Evidence of Creative Destruction in Industrial and Developing Countries," IZA Discussion Papers 1374, Institute for the Study of Labor (IZA).
  2. Van Biesebroeck, Johannes, 2005. "Firm Size Matters: Growth and Productivity Growth in African Manufacturing," Economic Development and Cultural Change, University of Chicago Press, vol. 53(3), pages 545-83, April.
  3. Aw, Bee Yan & Chen, Xiaomin & Roberts, Mark J., 2001. "Firm-level evidence on productivity differentials and turnover in Taiwanese manufacturing," Journal of Development Economics, Elsevier, vol. 66(1), pages 51-86, October.
  4. John Haltiwanger & C J Krizan & Lucia Foster, 1998. "Aggregate Productivity Growth: Lessons From Microeconomic Evidence," Working Papers 98-12, Center for Economic Studies, U.S. Census Bureau.
  5. Virginie Vial, 2008. "How Much Does Turnover Matter? Evidence from Indonesian Manufacturing Total Factor Productivity Growth, 1975-95," Oxford Development Studies, Taylor & Francis Journals, vol. 36(3), pages 295-322.
  6. Barbara M. Roberts & Steve Thompson, 2005. "Firm Turnover, Restructuring and Labour Productivity in Transition: The Case of Poland," Discussion Papers in Economics 05/27, Department of Economics, University of Leicester.
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