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Jurnal Ekonomi Malaysia

54 (2) 2020 67 – 76

Factor Accumulation and Total Factor Productivity Growth: ASEAN Economies
Pengumpulan Faktor dan Jumlah Faktor Pertumbuhan Produktiviti: Ekonomi ASEAN

Manipal International University
71800 Putra Nilai Negeri Sembilan Darul Khusus
MALAYSIA

subramaniam.munusamy@miu.edu.my

Faculty of Accountancy and Management
Tunku Abdul Rahman University
Lot PT 21144, Jalan Sungai Long
43000 Kajang, Selangor
MALAYSIA

yogambigai@utar.edu.my

Abstract

This study examines the contribution of factor accumulation on Total Factor Productivity (TFP) growth in the eight ASEAN countries with specific reference to short-term and long-term estimation effect. Using Mean Group (MG) estimator on data between 1990 and 2018, this study found a significant relationship between capital accumulation and TFP growth. Our analysis suggests that the positive growth on TFP in most ASEAN countries was due to the short-run effect of capital accumulation. This study also found that the ASEAN economies have a relatively lower rate of capital utilization that adversely affects TFP growth in the long run. The contribution of TFP to output growth is paramount for the sustainability of long-term economic growth. Thus, ASEAN countries need to accelerate capital accumulation and technology adoption in the short-term and utilize idle capital in the long-term.

Keywords

ASEAN; Factor accumulation; Mean Group Estimator; TFP
http://dx.doi.org/10.17576/JEM-2020-5402-6
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Munusamy, , & Rajamoorthy, (2020). Factor Accumulation and Total Factor Productivity Growth: ASEAN Economies. Jurnal Ekonomi Malaysia, 54(2), 67–76. http://dx.doi.org/10.17576/JEM-2020-5402-6

@article{munusamy2020factor,
  title={Factor Accumulation and Total Factor Productivity Growth: ASEAN Economies},
  author={Munusamy, Subramaniam and Rajamoorthy, Yogambigai},
  journal={Jurnal Ekonomi Malaysia},
  volume={54},
  number={2},
  pages={67—76},
 

year={2020},
}

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