Factor accumulation and total factor productivity growth: ASEAN economies
This study examines the contribution of factor accumulation on Total Factor Productivity (TFP) growth in the eight ASEAN countries with specific reference to short-term and long-term estimation effect. Using Mean Group (MG) estimator on data between 1990 and 2018, this study found a significant...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2020
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| Online Access: | http://journalarticle.ukm.my/16872/ http://journalarticle.ukm.my/16872/1/jeko_54%282%29-6.pdf |
| Summary: | This study examines the contribution of factor accumulation on Total Factor Productivity (TFP) growth in the eight
ASEAN countries with specific reference to short-term and long-term estimation effect. Using Mean Group (MG)
estimator on data between 1990 and 2018, this study found a significant relationship between capital accumulation
and TFP growth. Our analysis suggests that the positive growth on TFP in most ASEAN countries was due to the
short-run effect of capital accumulation. This study also found that the ASEAN economies have a relatively lower rate
of capital utilization that adversely affects TFP growth in the long run. The contribution of TFP to output growth is
paramount for the sustainability of long-term economic growth. Thus, ASEAN countries need to accelerate capital
accumulation and technology adoption in the short-term and utilize idle capital in the long-term. |
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