Sources of Labour Productivity Growth in Large Scale Industries in Malaysia

Rahmah Ismail and Idris Jajri
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Rahmah Ismail: Faculty of Economics Universiti Kebangsaan Malaysia 43600 UKM Bangi Selangor Darul Ehsan
Idris Jajri: Faculty of Economics Universiti Kebangsaan Malaysia 43600 UKM Bangi Selangor Darul Ehsan

Jurnal Ekonomi Malaysia, 2000, vol. 34, 59-75

Abstract: Large-scale industries (LSIS) play an important role in the Malaysian industrial development. LSIS’ contribution to employmen is about 60 percent and 70 percent to value added and fixed assets respectively. LSls also provide a broad marketing channel to small and medium industries (SMIS) which subsequently spur linkages within the industrial sector. Apart from this, LSIs also serve as a platform for foreign direct investment (FDI) that could potentially lead to technology transfer. Since LSIs play an important role in development, it is crucial to identify and understand the sources of labour productivity growth in this sector. This paper attempts to analyse the sources of labour productivity growth in the LSIS in Malaysia. Three sources of growth identified in this paper are capital labour ratio, quantity of labour and efficiency. The analyses in this paper are based on the Manufacturing Industrial Survey data of 1982 to 1994 collected by the Departement of Statistics Malaysia.

Date: 2000
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