A comparative analysis of technical efficiency, technological change and total factor productivity in selected ASEAN+3 countries Online publication date: Fri, 14-Jul-2023
by Noorazeela Zainol Abidin; Ishak Yussof; Zulkefly Abdul Karim; Mohd Shahidan Shaari
International Journal of Public Sector Performance Management (IJPSPM), Vol. 12, No. 1/2, 2023
Abstract: Total factor productivity (TFP) growth in ASEAN+3 countries exhibits varied trends. This is due to the fact that each country has different skills and different levels of technological advancement. This study aims to analyse the trends in technical efficiency (TEC), technological change (TC) and TFP growth using the Malmquist productivity index method. The analysis is based on data ranging from 1981 to 2014 in selected ASEAN+3 countries. The results show that during the periods 1981-1985, 1986-1990, 1991-1995, 1996-2000 and 2001-2005, the contribution of TEC to TFP growth was higher than that of TC. However, during the periods 2006-2010 and 2011-2014, the contribution of TC to TFP growth was higher than that of TEC. Therefore, it is imperative for the countries to improve the quality of inputs such as labour. Hence, skilled workers are indispensable to produce higher productivity.
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