Factor Accumulation and Total Factor Productivity Growth: ASEAN Economies

Subramaniam Munusamy () and Yogambigai Rajamoorthy ()
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Subramaniam Munusamy: Manipal International University 71800 Putra Nilai Negeri Sembilan Darul Khusus MALAYSIA
Yogambigai Rajamoorthy: Faculty of Accountancy and Management Tunku Abdul Rahman University Lot PT 21144, Jalan Sungai Long 43000 Kajang, Selangor MALAYSIA

Jurnal Ekonomi Malaysia, 2020, vol. 54, issue 2, 67-76

Abstract: This study examines the contribution of factor accumulation on Total Factor Productivity (TFP) growth in the eight ASEAN countries with specific reference to short-term and long-term estimation effect. Using Mean Group (MG) estimator on data between 1990 and 2018, this study found a significant relationship between capital accumulation and TFP growth. Our analysis suggests that the positive growth on TFP in most ASEAN countries was due to the short-run effect of capital accumulation. This study also found that the ASEAN economies have a relatively lower rate of capital utilization that adversely affects TFP growth in the long run. The contribution of TFP to output growth is paramount for the sustainability of long-term economic growth. Thus, ASEAN countries need to accelerate capital accumulation and technology adoption in the short-term and utilize idle capital in the long-term.

Keywords: ASEAN; Factor accumulation; Mean Group Estimator; TFP (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ukm:jlekon:v:54:y:2020:i:2:p:67-76

DOI: 10.17576/JEM-2020-5402-6

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