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Jurnal Ekonomi Malaysia

47 (1) 2013 65 – 74

Decomposition of Productivity Growth of the Malaysian Manufacturing Sector, 1983-2005
Pencerakinan Pertumbuhan Produktiviti Sektor Pembuatan Malaysia, 1983-2005

School of Economics
Faculty of Economics and Management
Universiti Kebangsaan Malaysia
43600 UKM Bangi Selangor
MALAYSIA

rasiahs@ukm.my

Malaysian Institute of Economic Research (MIER)
Level 2, Podium City Point, Kompleks Dayabumi
Jln. Sultan Hishamuddin
50050 Kuala Lumpur
MALAYSIA

zakariah@mier.po.my

Abstract

The present paper examines the productivity growth of Malaysian manufacturing industries between 1983 and 2005. Unlike previous studies that use one source of data, the present study uses two sources of data:the Malaysian Input-Output Tables and the Malaysian Industrial Manufacturing Survey. The analysis focuses upon on the decomposition of aggregate total factor productivity (TFP) growth into three effects: technical change, linkage and final demand. The findings indicate that final demand is the largest contributor to growth in overall TFP. In addition, a small contribution stems from technical change and particularly linkage effects. When the decomposition of final demand effect is extended into price and real share effects, the findings obtained demonstrate that a change in relative prices significantly influences the change in output share produced.

Keywords

linkage structure and final demand; technical change; Total factor productivity growth
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Sulaiman, , & Rashid, (2013). Decomposition of Productivity Growth of the Malaysian Manufacturing Sector, 1983-2005. Jurnal Ekonomi Malaysia, 47(1), 65–74.

@article{sulaiman2013decomposition,
  title={Decomposition of Productivity Growth of the Malaysian Manufacturing Sector, 1983-2005},
  author={Sulaiman, Noorasiah and Rashid, zakariah},
  journal={Jurnal Ekonomi Malaysia},
  volume={47},
  number={1},
  pages={65—74},
 

year={2013},
}

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