Source of output growth in small and medium scale enterprises in Malaysia

Idris Jajri and Rahmah Ismail ()

MPRA Paper from University Library of Munich, Germany

Abstract: Small and medium scale enterprises (SMEs) play an important role in the Malaysian industrial development. SMEs comprise of more than 90 per cent of the total manufacturing establishments, contributing about 40 per cent of the total employments and 30 per cent of the total fixed assets in this sector. However, SMEs’ value added is very much lower than that of the large scale. A low productivity of physical inputs or factors efficiency may be attributed to low level of value added. In general the benefit gained from technological advancement and human resource development varies for different size and types of industry. Consequently, this leads to productivity differences of their physical inputs and quality of inputs. This paper aims to address this issue using data from the Manufacturing Industries Survey conducted by the Department of Statistics of Malaysia. The analysis will look at the source of output growth in different types of SMEs sub-industries.

Keywords: Growth; total factor productivity; manufacturing sector (search for similar items in EconPapers)
JEL-codes: O30 (search for similar items in EconPapers)
Date: 2007-01
New Economics Papers: this item is included in nep-cse, nep-eff and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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