Productivity growth and efficiency change in Malaysian manufacturing: recent evidence from disaggregated data

Wadud, Mokhtarul 2006, Productivity growth and efficiency change in Malaysian manufacturing: recent evidence from disaggregated data, in Proceedings of the 35th Australian Conference of Economists, [Australian Conference of Economists], [Perth, W.A.], pp. 1-23.

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Title Productivity growth and efficiency change in Malaysian manufacturing: recent evidence from disaggregated data
Author(s) Wadud, MokhtarulORCID iD for Wadud, Mokhtarul
Conference name Australian Conference of Economists (35th: 2006: Perth, W.A.)
Conference location Perth, W.A.
Conference dates 25-27 Sep. 2006
Title of proceedings Proceedings of the 35th Australian Conference of Economists
Editor(s) MacDonald, Garry
Publication date 2006
Conference series Australian Conference of Economists
Start page 1
End page 23
Publisher [Australian Conference of Economists]
Place of publication [Perth, W.A.]
Keyword(s) manufacturing
productivity growth
technical efficiency change
malmquist indices
Summary This paper estimates productivity growth in Malaysian manufacturing over the period 1983-1999. Malmquist productivity Indices (MPIs) have been computed using non parametric Data Envelopment Analysis (DEA) type linear programming, which show productivity growth sourced from efficiency change and growth in technology. Unlike previous studies, this study identifies the sources of productivity growth in Malaysian manufacturing industries at the five digit breakdown of Malaysian Standard Industrial Classification (MSIC) thereby revealing more industry specific efficiency and technical growth patterns. Results indicated that a high majority of the industries operated with low levels of technical efficiency with little or no improvement over time. Growth estimates revealed that two third of the industries (76 out of total 114 categories) experienced average annual productivity improvement ranging from 0.1% to 7.8%. Average annual technical progress was recorded by 95 industry categories while technical efficiency improvement was achieved by 53 industries. Overall yearly average indicated relatively low productivity growth from the mid 1990’s onwards caused by either efficiency decline or technical regress. Summary results for industries showed that some of the high rates of productivity growth have been recorded in glass and glass products (7.3%), Petroleum and coal (7.2%), industrial chemicals (4.9%) contributed from both efficiency improvement and technical progress ranging from 0.8% to 5.4% and from 1.7% to 4.1%, respectively. These results are expected to have some implications for ongoing and future strategic policy reform in Malaysian manufacturing generating a more sustainable growth for specific industry categories.
ISBN 1740675010
Language eng
Field of Research 140299 Applied Economics not elsewhere classified
HERDC Research category E1 Full written paper - refereed
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