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Factor Determinants of Total Factor Productivity Growth in Malaysian Manufacturing Industries: a decomposition analysis

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  • Sangho Kim
  • Mazlina Shafi'i

Abstract

To decompose total factor productivity growth into technical progress, technical efficiency change, allocative efficiency change, and scale efficiency change, a stochastic frontier approach was applied to Malaysian manufacturing data covering the period 2000 to 2004. The results show that total factor productivity was driven mainly by technical progress but was hurt by deteriorating technical efficiency. Scale efficiency and allocative efficiency also exerted significant influences on total factor productivity. The skill and quality of workers were the most important determinants of technical efficiency, whereas foreign ownership, imports, and employee quality underpinned technical progress. The impact of firm size on scale economies differed across industries. Copyright © 2009 The Authors. Journal compilation © 2009 Crawford School of Economics and Government, The Australian National University and Blackwell Publishing Asia Pty Ltd.

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  • Sangho Kim & Mazlina Shafi'i, 2009. "Factor Determinants of Total Factor Productivity Growth in Malaysian Manufacturing Industries: a decomposition analysis," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 23(1), pages 48-65, May.
    • Handle: RePEc:bla:apacel:v:23:y:2009:i:1:p:48-65
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    References listed on IDEAS

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    Cited by:

    1. Gitana Dudzevičiūtė & Gitana Dudzevičiūtė, 2013. "Lithuanian manufacturing trends in the context of developed and developing countries," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 1(1), pages 55-66, September.
    2. Melaku T. Abegaz, 2013. "Total Factor Productivity and Technical Efficiency in the Ethiopian Manufacturing Sector," Working Papers 010, Policy Studies Institute.
    3. Kim, Sangho & Park, Donghyun & Park, Jong-Ho, 2009. "Productivity Growth in Different Firm Sizes in the Malaysian Manufacturing Sector: An Empirical Investigation," ADB Economics Working Paper Series 176, Asian Development Bank.
    4. Ryota Nakatani, 2024. "Food companies' productivity dynamics: Exploring the role of intangible assets," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 185-226, January.
    5. Pontus Mattsson & Jonas Månsson & William H. Greene, 2020. "TFP change and its components for Swedish manufacturing firms during the 2008–2009 financial crisis," Journal of Productivity Analysis, Springer, vol. 53(1), pages 79-93, February.
    6. Feng, Hongxiang & Grifoll, Manel & Yang, Zhongzhen & Zheng, Pengjun, 2021. "Latest challenges to ports in public-private partnership: Case of Dandong Port (China)'s bankruptcy," Transport Policy, Elsevier, vol. 110(C), pages 293-305.
    7. Gitana Dudzevičiūtė, 2013. "Lithuanian manufacturing trends in the context of developed and developing countries," Post-Print hal-01694317, HAL.
    8. Pontus Mattsson & Jonas Mansson & William H. Greene, 2018. "TFP Change and its Components for Swedish Manufacturing Firms During the 2008-2009 Financial Crisis," Working Papers 18-27, New York University, Leonard N. Stern School of Business, Department of Economics.

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