Total Factor Productivity Growth Based on Resource and Non Resource Based Industries of the Manufacturing Sector, 2000-2005

2013 ◽  
Vol 64 (1) ◽  
Author(s):  
Noorasiah Sulaiman ◽  
Norfadila Fadzil

This paper examines total factor productivity (TFP) growth in resource and non resource based industries of the Malaysian manufacturing sector. The growth in TFP is examined between 2000 and 2005. Unlike previous studies that use one source of data from Industrial Manufacturing Survey (IMS), this research combines two sources of data–Malaysian Input-Output Tables and IMS. The motivation for this study was brought about due to the need to present a different method for estimating TFP growth using the input-output methodology. The result from this study for resource and non resource based industries reveals that the TFP growth is relatively low for both industries. In addition, the major source of change in TFP of the both industries is contributed by intermediate inputs, while the contribution of labour and capital is substantially low. 

2017 ◽  
Vol 34 (1) ◽  
pp. 88-115 ◽  
Author(s):  
Neil Foster-McGregor ◽  
Bart Verspagen

Using the World Input–Output Database, this paper calculates total factor productivity (TFP) growth for a sample of 40 economies during the period 1995–2009 to show that TFP growth in Asian economies has been relatively strong. In a number of Asian economies, TFP growth in services has outpaced that in manufacturing. This paper presents a novel structural decomposition of TFP growth and shows that the main drivers of aggregate productivity growth, as well as differences in productivity growth between services and manufacturing, have been changing factor requirements. These effects tend to offset the negative productivity effect of a declining ratio of value added to gross output.


2011 ◽  
Vol 3 (5) ◽  
pp. 296-310
Author(s):  
Indrajit Bairagya

Since its very onset, the concept and definition of the informal sector has been a subject of debate both at the national and international levels. Existing literature uses the terms ‘informal sector’ and ‘unorganized sector’ interchangeably. However, in India, the characteristics of enterprises in the informal and non-informal unorganized manufacturing sectors are different and, thus, it is not justifiable to consider the informal and unorganized sector interchangeably for the manufacturing sector. Thus, the objective of this paper is to test the hypothesis on whether or not the total factor productivity growth (TFPG) of the informal manufacturing sector is different from the non-informal unorganized manufacturing sector. TFPG is decomposed into technical efficiency change and technological change. Later, technical efficiency change is further decomposed by pure efficiency change and scale efficiency change. Results show that the average TFPG of the non-informal sector is higher than the informal sector. The informal sector heavily concentrates in own account small enterprises, whereas the non-informal unorganized sector concentrates only in directory manufacturing enterprises (DME). Due to large in size, DME avails the advantages of economies of scale, which, in turn, helps the units for more growth in terms of total factor productivity growth. The main reason for productivity decrease of the enterprises, besides technology regress and the lack of adequate investments, is the limitation of activities and scale along with the optimal allocation of resources. This study provides a basis on how policies can be designed for enhancing the total factor productivity growth of the informal sector.


The total factor productivity indices of cashew estimated using the Tornqvist index for the period 1998-99 to 2017-18. TFP index was promising. It indicated that the inputs were efficiently allocated in cashew plantation. TFP increased at 3.13 percent per annum. During the same period, the output index grew by 2.18 percent per annum and the input index declined at the rate of 0.92 percent per annum. The improvement in the total factor productivity may be due to non-input factors such as research investment and extension efforts. The results indicated that research investment (0.23), rainfall (0.84), road density (0.56) and rural literacy (1.62) had significantly contributed to TFP growth in cashew


Author(s):  
Elsadig Musa Ahmed

The objective of this paper is to examine the effects of human capital on the productivity growth in Malaysias manufacturing sector. To achieve this, labour input was subdivided into skilled semi-skilled and unskilled. The study found that materials account for the largest cost component in the sector although shortages of skilled labour constitute a serious constraint on capital utilisation. In addition, the contribution of total factor productivity (TFP) growth of the sector was generally found to be very low particularly during the second sub-period of 1987-2001. The improvement and slowdown of TFP contribution to manufacturing sector in terms of average annual growth rates were dependent on the inputs used in production, believed to be of low quality and insufficient.


Sign in / Sign up

Export Citation Format

Share Document