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Total Factor Productivity in the Malaysian Manufacturing Sector: Some Preliminary Results

Author

Listed:
  • yin, chong pee

    (Institut Teknologi Mara Shah Alam Malaysia)

  • yean, tham siew

    (Jabatan Analisis Ekonomi & Dasar Awam Fakulti Ekonomi Universiti Kebangsaan Malaysia 43600 UKM Bangi, Selangor DE.)

Abstract

In view of the increasing importance of the manufacturing sector in Malaysia, this paper seeks to measure the rate of growth in total factor productivity (TFP) and its contribution to the growth of this sector. Using the Divisia index approach, the results of this study indicate that the rate of growth of TFP averaged at 0.64 per cent per annum between 1986-90. Further the average contribution of the growth in TFP to the growth of the manufacturing sector is only 4.67 per cent for the period of this study. The major contributor to manufacturing growth was found to be the growth in intermediate inputs.

Suggested Citation

  • yin, chong pee & yean, tham siew, 1995. "Total Factor Productivity in the Malaysian Manufacturing Sector: Some Preliminary Results," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 29, pages 9-35.
    • Handle: RePEc:ukm:jlekon:v:29:y:1995:i::p:9-35
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    References listed on IDEAS

    as
    1. Tsao, Yuan, 1985. "Growth without productivity: Singapore Manufacturing in the 1970s," Journal of Development Economics, Elsevier, vol. 19(1-2), pages 25-38.
    2. Nishimizu, Mieko & Robinson, Sherman, 1984. "Trade policies and productivity change in semi-industrialized countries," Journal of Development Economics, Elsevier, vol. 16(1-2), pages 177-206.
    3. Nelson, Richard R, 1981. "Research on Productivity Growth and Productivity Differences: Dead Ends and New Departures," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 1029-1064, September.
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    Cited by:

    1. Sulaiman, Noorasiah, 2012. "An Input-Output Analysis of the Total Factor Productivity Growth of the Malaysian Manufacturing Sector, 1983-2005," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 46(1), pages 147-155.

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