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Total Factor Productivity in the Malaysian Resource-Based Industries

Author

Listed:
  • Rozilee Asid

    (Universiti Malaysia sabah)

  • Mohd Safri Saiman

    (Universiti Malaysia Sabah)

Abstract

This paper will focus on the issues of total factor productivity growth (TFPG) for both 3 and 5-digit level and the performance of resource-based industries (RBIs) in Malaysia for the period 1981-1997. By using the neoclassical Cobb-Douglas production function and traditional growth accounting methodology (Solow-residual) with time discrete Tornqvist weighted value share index, the TFPG estimation for both classifications shows an interesting pattern in terms of sign and fundamental composition. The development of RBIs during the period under study is mostly input driven (moving towards a capital intensive industry), where supply effect of unskilled labour assimilates to the underlying value added growth over time.

Suggested Citation

  • Rozilee Asid & Mohd Safri Saiman, 2006. "Total Factor Productivity in the Malaysian Resource-Based Industries," Economics Bulletin, AccessEcon, vol. 15(16), pages 1-8.
    • Handle: RePEc:ebl:ecbull:eb-06o00058
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    References listed on IDEAS

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    1. 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.
    2. Menon, Jayant, 1998. "Total factor productivity growth in foreign and domestic firms in Malaysian manufacturing," Journal of Asian Economics, Elsevier, vol. 9(2), pages 251-280.
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    JEL classification:

    • O0 - Economic Development, Innovation, Technological Change, and Growth - - General

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