Arbeitspapier

Productivity Growth in Different Firm Sizes in the Malaysian Manufacturing Sector: An Empirical Investigation

Based on Cuesta (2000), this paper develops a stochastic frontier production model that allows for different groups of firms to have different patterns of technical efficiency over time. The authors apply the model to the Malaysian manufacturing sector to decompose total factor productivity growth into technical efficiency change and technical progress for different firm sizes - e.g., large and small - in seven industries during 2000–2004. The empirical results indicate that technical efficiency has worsened across all industries and firm sizes. In contrast, evidence of substantial technical progress was found in all industries. In fact, technical progress has been larger than technical efficiency deterioration in most industries and firm sizes, leading to total factor productivity growth. The analysis identifies the industries and firm sizes that lag the most in productivity, and thus have the greatest scope for policies that facilitate productivity growth.

Language
Englisch

Bibliographic citation
Series: ADB Economics Working Paper Series ; No. 176

Classification
Wirtschaft
Economywide Country Studies: Asia including Middle East
Subject
Capital mobility
financial crises
investment-saving gap
Asia
Industrieproduktion
Betriebsgröße
Produktivität
Industrie
Malaysia

Event
Geistige Schöpfung
(who)
Kim, Sangho
Park, Donghyun
Park, Jong-Ho
Event
Veröffentlichung
(who)
Asian Development Bank (ADB)
(where)
Manila
(when)
2009

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Kim, Sangho
  • Park, Donghyun
  • Park, Jong-Ho
  • Asian Development Bank (ADB)

Time of origin

  • 2009

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