Total Factor Productivity Growth Based on Resource and Non Resource Based Industries of the Manufacturing Sector, 2000-2005
DOI:
https://doi.org/10.11113/sh.v64n1.1Keywords:
Total factor productivity growth, input-output methodology, resource and non resource based industriesAbstract
This paper examines total factor productivity (TFP) growth in resource and non resource based industries of the Malaysian manufacturing sector. The growth in TFP is examined between 2000 and 2005. Unlike previous studies that use one source of data from Industrial Manufacturing Survey (IMS), this research combines two sources of data–Malaysian Input-Output Tables and IMS. The motivation for this study was brought about due to the need to present a different method for estimating TFP growth using the input-output methodology. The result from this study for resource and non resource based industries reveals that the TFP growth is relatively low for both industries. In addition, the major source of change in TFP of the both industries is contributed by intermediate inputs, while the contribution of labour and capital is substantially lowReferences
Baier, S. L., Dwyer, G. P., & Tamura, R. 2002. How Important are Capital and Total Factor Productivity for Economic Growth? Working Paper. Federal Reserve Bank of Atlanta.
Bank Negara (various years). Annual Report, Kuala Lumpur: Bank Negara Malaysia.
Bank Negara 2006. Annual Report 2005. Kuala Lumpur: Bank Negara Malaysia.
Department of Statistics Malaysia. 2000 & 2005. Malaysian Input-Output Tables 2000 and 2005, Kuala Lumpur: Putrajaya.
Fatimah Said & Saad Mohd Said. 2004. Total Factor Productivity Growth in Malaysian Manufacturing Sector: Emphasis on Heavy Industries. International of Economics and Management,. 12(2): 131–164.
Gan W. B, F. C. Wong & Y. W. Tok. 1993. Total Factor Productivity in the Singapore Manufacturing Sector during the 1980s. Unpublished mimeo.
Idris Jajri. 2007. Determinants of Total Factor Productivity Growth in Malaysia. Journal of Economic Cooperation. 28(3): 41–58.
Jorgenson, D. W., Gollop, F. and Fraumeni, B. 1987. Productivity and the U.S Economic Growth. Amsterdam: North-Holland.
Kim, Jong-II. & Lawrence J. Lau. 1994. The Sources of Economic Growth of the East Asian Newly Industrialized Countries. Journal of the Japanese and International Economies. 8(3): 235–271.
Kop Jansen, P. S. M. & Raa, T. ten. 1990. The Choice of Model in the Construction of Input-Output Coefficients Matrices. International Economic Review. 31(1): 213–227.
Krugman, P. R. 1994. The Myth of Asia’s Miracle. Foreign Affairs. 73(6): 62–77.
Leontief, W. 1953. Structural Change, in: Wassily Leontief et al. (eds.). Studies in the Structure of the American Economy. New York: Oxford University Press. 17–52.
Maisom Abdullah & Arshad Marshidi. 1992. Pattern of Total Factor Productivity Growth in Malaysia Manufacturing Industries, 1973-1989, Paper presented at HIID-ISIS Seminar, Kuala Lumpur.
Malaysian Productivity Corporation. 1999. Productivity Report 1998. Petaling Jaya: Ampang Press.
Menon, J. 1998. Total Factor Productivity Growth in Foreign and Domestic Firms in Malaysian Manufacturing, Journal of Asian Economics. 9(2): 251–280.
Nik Hashim Nik Mustapha. 1998. Output versus Productivity Growth in the Manufacturing Industry: An Experience for Sustainable Development Planning. Paper presented at Workshop of Faculty of Economics, UKM. 19-21 Jun, Port Dickson. Malaysia.
Noorasiah Sulaiman & Zakariah Abdul Rashid. 2013. Decomposition of Productivity Growth of the Malaysian Manufacturing Sector, 1983-2005. Jurnal Ekonomi Malaysia. 47(1): 65–74.
Noorasiah Sulaiman, Zakariah Abdul Rashid & Khalid Abdul Hamid. 2012. Productivity Improvement in the Utilization of Domestic and Imported Inputs in Resource and Non Resource Based Industries: 1983-2005. International Journal of Management Studies. 19(1): 87–114.
Noriyoshi, O; NorAini Mohd Amdzah; Zainon Bakar; Rauzah Zainal Abidin & Mazlina Shafii. 2002. Productivity of Foreign and Domestic Firms in the Malaysian Manufacturing Industry. Asian Economic Journal. 16(3): 215–228.
Okamoto, Y. 1994. Impact of Trade and FDI Liberalization Policies on the Malaysian Economy. The Developing Economies. 32(4): 460–478.
Raa, T. ten & Wolff, E. N. 1991. Secondary Products and the Measurement of Productivity Growth. Regional Science and Urban Economics. 21(4): 581–615.
Raa, T. ten, Debesh, C. & Anthony, S.J. 1984. An Alternative Treatment of Secondary Products in Input Output Analysis. Review of Economics and Statistics. 66(1): 88–97.
Rahmah Ismail. 1999. Contribution of Input Quality to Labour Productivity in the SMIs in Malaysia. Paper presented at Workshop of Department of Statistics Economy, Faculty of Economics, Universiti Kebangsaan Malaysia. Port Dickson.
Renuka, M. 2001. Assessing the Output and Productivity Growth of Malaysia’s Manufacturing Sector. Journal of Asian Economics. 12(4): 587–597.
---------. 2002. Is There a Real TFP Growth Measure for Malaysia’s Manufacturing Industries? ASEAN Economic Bulletin. 19(2): 178–190.
Solow, R. 1956. A contribution to the Theory of Economic Growth. Quarterly Journal of Economics. 70(1): 65-94.
Tham, S. Y. 1996. Productivity, Growth and Development in Malaysia. The Singapore Economic Review. 40(1): 41–63.
---------.1997. Determinants of Productivity Growth in the Malaysian Manufacturing Sector. ASEAN Economic Bulletin. 13(3): 333–343.
Tham, S. Y. & Choong, P. Y. 1995. Total Factor Productivity in the Malaysian Manufacturing Sector: Some Preliminary Results. Jurnal Ekonomi Malaysia. 29: 9–35.
Tsao, Y. 1985. Growth without Productivity: Singaporean Manufacturing the 1970s. Journal of Development Economics. 19(1–2): 25–38.
Viet, V. Q. 1986. Study of Input-Output Tables: 1970-1980, Geneva: United Nation Statistical Office.
Wolff, E. N. 1985. Industrial Composition, Inter-Industry Effects and the U.S Productivity Slowdown. Review of Economics and Statistics. 67(2): 268–277.
----------. 1994. Productivity Measurement within an Input-Output Framework. Regional Science and Urban Economics. 24(1): 75–92.
Young, A. 1994b. Lessons from the East Asian NICs: A Contrarian View, European Economic Review. 38(3–4): 964–973.
