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The Determinants Of Total Factor Productivity In The Malaysian Automotive Industry: Are Government Policies Upgrading Technological Capacity?

Author

Listed:
  • KOZO OTSUKA

    (College of International Management, Ritsumeikan Asia Pacific University, 1-1 Jumonjibaru, Beppu-shi Oita, 874-8577, Japan)

  • KAORU NATSUDA

    (College of International Management, Ritsumeikan Asia Pacific University, 1-1 Jumonjibaru, Beppu-shi Oita, 874-8577, Japan)

Abstract

This paper examines the determinants of total factor productivity (TFP) in the Malaysian automotive industry, focusing on the effectiveness of government policies. Our panel data analysis shows that the productivity of the automotive industry in Malaysia highly depends on the technology embodied within imports. Government policies have not contributed to the technological upgrading of the industry. The policies to protect the domestic producers from international competition and to favor bumiputra firms seem to have adverse impacts on productivity.

Suggested Citation

  • Kozo Otsuka & Kaoru Natsuda, 2016. "The Determinants Of Total Factor Productivity In The Malaysian Automotive Industry: Are Government Policies Upgrading Technological Capacity?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-18, September.
    • Handle: RePEc:wsi:serxxx:v:61:y:2016:i:04:n:s0217590815500460
    DOI: 10.1142/S0217590815500460
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    References listed on IDEAS

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