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Source of output growth in small and medium scale enterprises in Malaysia

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  • Jajri, Idris
  • Ismail, Rahmah

Abstract

Small and medium scale enterprises (SMEs) play an important role in the Malaysian industrial development. SMEs comprise of more than 90 per cent of the total manufacturing establishments, contributing about 40 per cent of the total employments and 30 per cent of the total fixed assets in this sector. However, SMEs’ value added is very much lower than that of the large scale. A low productivity of physical inputs or factors efficiency may be attributed to low level of value added. In general the benefit gained from technological advancement and human resource development varies for different size and types of industry. Consequently, this leads to productivity differences of their physical inputs and quality of inputs. This paper aims to address this issue using data from the Manufacturing Industries Survey conducted by the Department of Statistics of Malaysia. The analysis will look at the source of output growth in different types of SMEs sub-industries.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2779.

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Date of creation: Jan 2007
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Handle: RePEc:pra:mprapa:2779

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Keywords: Growth; total factor productivity; manufacturing sector;

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  1. Lau, Lawrence J. & Jamison, Dean T. & Liu, Shu-Cheng & Rivkin, Steven, 1993. "Education and economic growth Some cross-sectional evidence from Brazil," Journal of Development Economics, Elsevier, vol. 41(1), pages 45-70, June.
  2. Otani, Ichiro & Villanueva, Delano, 1990. "Long-term growth in developing countries and its determinants: An empirical analysis," World Development, Elsevier, vol. 18(6), pages 769-783, June.
  3. Theodore W. Schultz, 1962. "Reflections on Investment in Man," Journal of Political Economy, University of Chicago Press, vol. 70, pages 1.
  4. Haskel, Jonathan & Martin, Christopher, 1993. "Do Skill Shortages Reduce Productivity? Theory and Evidence from the United Kingdom," Economic Journal, Royal Economic Society, vol. 103(417), pages 386-94, March.
  5. Lockheed, Marlaine E & Jamison, Dean T & Lau, Lawrence J, 1987. "Farmer Education and Farm Efficiency: Reply," Economic Development and Cultural Change, University of Chicago Press, vol. 35(3), pages 643-44, April.
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Cited by:
  1. Tulus Tahi Hamonangan Tambunan, 2011. "Development of small and medium enterprises in a developing country: The Indonesian case," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing, vol. 5(4), pages 68-82, January.
  2. rene S. Egyir E. Owusu-Benoah F.O. Anno-Nyako B. Banful, 2011. "Assessing the factors of adoption of agrochemicals by plantain farmers in Ghana," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing, vol. 5(4), pages 83-97, January.
  3. repec:eme:jecpps:v:5:y:2011:i:1:p:68-82 is not listed on IDEAS

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