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

Wadud, I.K.M. Mokhtarul 2008, Productivity growth and efficiency change in Malaysian manufacturing : recent evidence from disaggregated data, The empirical economics letters, vol. 7, no. 5, pp. 497-504.

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Title Productivity growth and efficiency change in Malaysian manufacturing : recent evidence from disaggregated data
Author(s) Wadud, I.K.M. MokhtarulORCID iD for Wadud, I.K.M. Mokhtarul
Journal name The empirical economics letters
Volume number 7
Issue number 5
Start page 497
End page 504
Publisher University of Rajshahi
Place of publication Rajshahi, Bangladesh
Publication date 2008-05
ISSN 1681-8997
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 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 indicate that two third of the industries (76 out of total 114 categories) experienced average annual
productivity improvement ranging from 0.1% to 7.8% over the sampled period. 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 reveal 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.
Language eng
Field of Research 140299 Applied Economics not elsewhere classified
Socio Economic Objective 910404 Productivity (excl. Public Sector)
HERDC Research category C2 Other contribution to refereed journal
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