Total factor productivity growth, technical change, and technical efficiency in ASEAN Countries

• Main Author: Abd Karim, Mohd Zaini
• Format: Article
• Language: English
• Published: Universiti Utara Malaysia 2000
• Subjects: HC Economic History and Conditions
• Online Access: http://repo.uum.edu.my/45/1/Mohd_Zaini_b_Abd_Karim.pdf; http://repo.uum.edu.my/45/; http://ijms.uum.edu.my

This paper analyzes productivity growth in five ASEAN countries over the period 1978-1990. A Malmquist-Data-Envelopment Analysis (DEA) method as introduced by Fare, Grosskopf, Norris, and Zhang (1994) is used to calculate indices of productivity change and its components, technological change, technical eficiency change, and scale eficiency change. Results suggest that, on average, ASEAN countries productivity growth had been declining at a negative rate of 0.5 percent over the study period,mainly due to deterioration in efficiency with which existing technology is utilized rather than a lack of innovation or technological change. The results also show that Singapore is the most efficient economy in the region, while Philippines is the least efficient.