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Applied Economics Letters Volume 15, 2008 - Issue 8
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Original Articles

Technical efficiency and technological change in Malaysian service industries

V. G. R. Chandran Faculty of Business Management, Department of Economics University Technology Mara, KM 12 Jalan Muar, 85009 Segamat, Johor MalaysiaCorrespondence[email protected]
&
Veera Pandiyan Faculty of Business Management, Department of Management University Technology Mara, KM 12 Jalan Muar, 85009 Segamat, Johor Malaysia
Pages 655-657 | Published online: 26 Jun 2008
 
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Abstract

This article examines the total factor productivity (TFP) growth by decomposing it into technical efficiency and technological change for the 20 service industries in a developing country – Malaysia from 1987 to 1992. On average, the TFP growth of the service industries experienced positive TFP growth of 1.8%. The contributing factors for TFP growth was technical efficiency while technological regress was found to dampen the TFP progress.

Acknowledgements

We would like to thank Mr Nathan and Mr James for their comments and editorial work of this article.

Notes

1 Due to the space constraint the construction of LPs is not shown in this study. For details on Malmquist DEA, see Färe et al . Citation(1994), Coelli Citation(1996) for the guide to DEAP computer program.

2 Certain industries namely shipping, banking, insurance and finance experience quite substantial FDI inflows (Nga, Citation1988).

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Related Research Data

Total factor productivity growth, technological progress and technical efficiency change : dimensions of productivity change in Yugoslavia, 1965-1978
Source: Oxford University Press (OUP)
Evaluating Productivity of Chinese Microfinance Institutions: A Malmquist Approach
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