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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

Suggested Citation

  • Ergun Dogan & Koi Nyen Wong, 2010. "Plant Size, Turnover and Productivity in Malaysian Manufacturing," Monash Economics Working Papers 11-10, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2010-11
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    File URL: http://www.buseco.monash.edu.au/eco/research/papers/2010/1110plantsizedoganwong.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Plant turnover; plant size; productivity; manufacturing; Malaysia;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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