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Decomposition of productivity growth of the Malaysian palm oil mill sector

This study investigates total factor productivity (TFP) growth in the Malaysian palm oil mill sector over the period 2005-2010, using a Stochastic Frontier Approach (SFA) model. TFP growth was decomposed into three components, namely, technical efficiency (TE), technical progress (TP) and scale comp...

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Main Authors: Abdullah, Norhidayu, Hassan, Azman, Abdullah, Ramli, Ismail, Azman, Che Dir, Nur Asmani
Format: Article
Language:English
Published: Malaysian Palm Oil Board 2014
Online Access:http://psasir.upm.edu.my/id/eprint/35165/1/Decomposition%20of%20productivity%20growth%20of%20the%20Malaysian%20palm%20oil%20mill%20sector.pdf
http://psasir.upm.edu.my/id/eprint/35165/
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spelling my.upm.eprints.351652016-10-11T02:51:57Z http://psasir.upm.edu.my/id/eprint/35165/ Decomposition of productivity growth of the Malaysian palm oil mill sector Abdullah, Norhidayu Hassan, Azman Abdullah, Ramli Ismail, Azman Che Dir, Nur Asmani This study investigates total factor productivity (TFP) growth in the Malaysian palm oil mill sector over the period 2005-2010, using a Stochastic Frontier Approach (SFA) model. TFP growth was decomposed into three components, namely, technical efficiency (TE), technical progress (TP) and scale components (SEC). The empirical results show that productivity growth was driven mainly by TE for all palm oil mills, followed by TP. However, a change in the scale components had a negative effect on productivity growth. Overall, the study suggests that there are opportunities to improve productivity growth in the Malaysian palm oil mill sector. Malaysian Palm Oil Board 2014 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/35165/1/Decomposition%20of%20productivity%20growth%20of%20the%20Malaysian%20palm%20oil%20mill%20sector.pdf Abdullah, Norhidayu and Hassan, Azman and Abdullah, Ramli and Ismail, Azman and Che Dir, Nur Asmani (2014) Decomposition of productivity growth of the Malaysian palm oil mill sector. Oil Palm Industry Economic Journal, 14 (2). pp. 8-15. ISSN 1675-0632 http://palmoilis.mpob.gov.my/index.php/opiej#article-info
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description This study investigates total factor productivity (TFP) growth in the Malaysian palm oil mill sector over the period 2005-2010, using a Stochastic Frontier Approach (SFA) model. TFP growth was decomposed into three components, namely, technical efficiency (TE), technical progress (TP) and scale components (SEC). The empirical results show that productivity growth was driven mainly by TE for all palm oil mills, followed by TP. However, a change in the scale components had a negative effect on productivity growth. Overall, the study suggests that there are opportunities to improve productivity growth in the Malaysian palm oil mill sector.
format Article
author Abdullah, Norhidayu
Hassan, Azman
Abdullah, Ramli
Ismail, Azman
Che Dir, Nur Asmani
spellingShingle Abdullah, Norhidayu
Hassan, Azman
Abdullah, Ramli
Ismail, Azman
Che Dir, Nur Asmani
Decomposition of productivity growth of the Malaysian palm oil mill sector
author_facet Abdullah, Norhidayu
Hassan, Azman
Abdullah, Ramli
Ismail, Azman
Che Dir, Nur Asmani
author_sort Abdullah, Norhidayu
title Decomposition of productivity growth of the Malaysian palm oil mill sector
title_short Decomposition of productivity growth of the Malaysian palm oil mill sector
title_full Decomposition of productivity growth of the Malaysian palm oil mill sector
title_fullStr Decomposition of productivity growth of the Malaysian palm oil mill sector
title_full_unstemmed Decomposition of productivity growth of the Malaysian palm oil mill sector
title_sort decomposition of productivity growth of the malaysian palm oil mill sector
publisher Malaysian Palm Oil Board
publishDate 2014
url http://psasir.upm.edu.my/id/eprint/35165/1/Decomposition%20of%20productivity%20growth%20of%20the%20Malaysian%20palm%20oil%20mill%20sector.pdf
http://psasir.upm.edu.my/id/eprint/35165/
http://palmoilis.mpob.gov.my/index.php/opiej#article-info
_version_ 1643831372272369664
score 13.211869

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