Renuka Mahadevan

A DEA Approach to Understanding the Productivity Growth of Malaysia's Manufacturing Industries

This paper seeks to explain the productivity growth performance of Malaysias manufacturing sector using a panel data of 28 industries from 1981–1996. Here, the data envelopment analysis technique is used to calculate and decompose the Malmquist index of total factor productivity (TFP) growth into technical change, change in technical efficiency and change in scale efficiency. This allows the identification of the sources of productivity growth which is crucial for policy formulation. It was found that the annual TFP growth of the Malaysian manufacturing sector was low at 0.8% and this was driven by small gains in both technical change and technical efficiency, with industries operating close to optimum scale.

Assessing the output and productivity growth of Malaysia’s manufacturing sector

Abstract Given the importance of the manufacturing sector in the second-tier newly industrializing economy of Malaysia, this paper uses the stochastic frontier approach to assess the growth potential of this sector. This is performed by first estimating the production function by using panel data comprising 28 manufacturing industries over the period of 1981–1996. Unlike previous studies that used the growth accounting approach, here output growth is not just decomposed into input growth and total factor productivity growth but total factor productivity growth is further decomposed into technological progress and technical efficiency, thereby providing more direction for policy making.

New Evidence on the Export-Led Growth Nexus: A Case Study of Malaysia

This paper revisits the highly debated export-led growth hypothesis in a number of different ways using Malaysia as a case study. First, the hypothesis is tested in terms of labour and total factor productivity growth as a potential channel via which exports can affect or be affected by GDP growth. Considering the impact of imports on GDP and productivity growth serves a similar purpose. In addition, GDP is trade-adjusted to avoid the double-counting problem arising from the national income identity. Second, the relationships are examined using the relatively recent Toda and Yamamoto (1995) causality tests. These results have major implications and are necessary to reassess the effectiveness of trade policy as a strategy for economic development.

To Measure or Not To Measure Total Factor Productivity Growth

To date, the concept, measurement and interpretation of total factor productivity (TFP) growth remains highly discussed but poorly understood. This paper attempts to provide a review of these issues. First, the definition of TFP growth and the related concepts of embodied and disembodied technical change are discussed. Second, a brief overview and critique of TFP growth measuring techniques is provided. Third, the debate surrounding the accounting identity underlying the estimation of a production function for TFP growth is highlighted. Fourth, the usefulness of TFP growth is evaluated (and maintained) in the light of the criticisms hurled at this measure. Finally, some direction for future work on TFP growth is suggested.

Understanding Senior Self-Drive Tourism in Australia Using a Contingency Behavior Model

This aticle is the first application of the contingency behavior model to understand the behavior of grey nomads to changes in the availability of accommodation facilities when visiting regional Queensland of Australia. Using a pilot survey of 90 respondents, it was found that grey nomad future visit trip would be adversely affected by a decrease in accommodation facilities and an increase in travel costs. However, for an increase in accommodation facilities, repeat visitation takes place but with a smaller impact (than the decrease) and, interestingly, travel costs become insignificant. In addition, income levels proxied by education, and social events are significant determinants of future visits. These findings provide important policy considerations for effective management and understanding of the self-drive silver market for tourism.

A frontier approach to measuring total factor productivity growth in Singapore's services sector

Although an East Asian miracle, Singapore has been singled out for experiencing insignificant total factor productivity (TFP) growth, thereby reflecting limited potential for long‐term growth. Examines the validity of this statement for the services sector, which is an important engine of growth for Singapore. This is done using panel data with a stochastic frontier model, which, unlike the conventional growth accounting model used by previous studies, not only decomposes output growth into input growth and TFP growth but further decomposes TFP growth into technological progress and changes in technical efficiency. In addition, the stochastic frontier model incorporates the more realistic non‐neutral shifting production frontier, as opposed to the commonly assumed Hicks‐neutral production technology underlying a production function.

How technically efficient are Singapore's manufacturing industries?

This study attempts to understand the technical efficiency performance (i.e. how well resources and given technology are being used) in 28 manufacturing industries in Singapore from 1975–1994, using an improved version of the stochastic frontier model. In addition, an analytical model is used to investigate the causes of technical inefficiency in these industries to help policy formulation. The efficiency performance of foreign and local-dominated industries is also closely examined.

Trade liberalization and productivity growth in Australian manufacturing industries

Although there has been a revival of interest in the trade-growth nexus, the impact of trade liberalization on productivity gains remains empirical, given the ambiguity in the literature on this issue. This paper examines the case for Australia using annual data of eight two-digit manufacturing industries from 1968–69 to 1994–95. Unlike earlier studies, total factor productivity growth is first decomposed into technological progress and gains in technical efficiency, and the effect of trade liberalization is then investigated separately on TFP growth, as well as on each of the components of TFP growth. The empirical finding that trade liberalization has a positive and significant effect on technological progress, but no significant effect on gains in technical efficiency, adds yet another dimension to the evaluation of trade liberalization policies.

How cost efficient are Australia's mining industries?

This paper uses a stochastic translog cost frontier model and a panel data of five key mining industries in Australia over 1968-1969 to 1994-1995 to investigate the sources of output growth and the effects of cost inefficiency on total factor productivity (TFP) growth. The results indicate that mining output growth was largely input-driven rather than productivity-driven. Although there were some gains from technological progress and economics of scale in production, cost inefficiency which barely exceeded 1.1% since the mid-1970s in the mining industries was the main factor causing low TFP growth

Is output growth of Korean manufacturing firms productivity-driven?

This paper examines the sources of output growth and total factor productivity (TFP) growth of four selected South Korean manufacturing industries from 1980 to 1994. Unlike previous studies, this study is enriched by the use of firm level data within each industry and the application of the random coefficient frontier model. Empirical results show that output growth in the manufacturing industries is increasingly productivity-driven. But the varying sources of TFP growth (i.e. technical progress and gains in technical efficiency) within the industries present an urgent need to reexamine the effect of government policies and other factors to formulate specific policies for sustainable TFP growth.