Plant Size, Turnover and Productivity in Malaysian Manufacturing

Ergun Dogan and Koi Wong

No 11-10, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: Malaysian manufacturing has an asymmetrical structure: small and medium-sized enterprises dominate in numbers, but contribute relatively little to total output, employment, and exports as compared to their larger counterparts. In light of an increasingly competitive environment arising from globalization, a sound knowledge of turnover patterns within the sector by plant size and its potential impact on aggregate productivity growth is imperative. We find that turnover, particularly of large plants, makes a substantial contribution to overall productivity growth in manufacturing. Hence, from a policy perspective, facilitating turnover might be as important as supporting existing plants in promoting aggregate productivity growth

Keywords: Plant turnover; plant size; productivity; manufacturing; Malaysia (search for similar items in EconPapers)
JEL-codes: D24 F14 L60 O12 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2010-05
New Economics Papers: this item is included in nep-eff
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