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Multifactor Productivity And Idea Transmission Channels In The Malaysian Economy, Ester Shen Ai Chan
Multifactor Productivity And Idea Transmission Channels In The Malaysian Economy, Ester Shen Ai Chan
Dissertations and Theses Collection (Open Access)
This paper examines the contribution of multifactor productivity (MFP) growth to output per worker growth in Malaysia from 1961-2000. MFP growth is found to contribute about 74 percent to output per worker growth from 1987-2000, but has only minimal or negative contribution to growth in the earlier years. This paper then attempts to explain why MFP growth has such a large contribution to output per worker growth in the period 1987-2000 by looking at international trade as channel of technology or idea transfer from the G5 countries into Malaysia. MFP grows because ideas from these advanced nations are transferred into …