Foreign ownership and openness in the Malaysian food processing industry: impact on productivity growth.

Food processing industry plays an important role in the Malaysian economy. The industry contributes about 10% to the total manufacturing output. This study aims to investigate the impacts of foreign ownership and openness to productivity growth in the Malaysian Food Processing Industry (FPI). A n...

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Main Authors: Yodfiatfinda, Shamsudin, Mad Nasir, Mohamed, Zainalabidin, Yusop, Zulkornain, Radam, Alias
Format: Conference or Workshop Item
Language:English
Published: 2011
Subjects:
Online Access:http://psasir.upm.edu.my/id/eprint/21038/
http://psasir.upm.edu.my/id/eprint/21038/1/ID%2021038.pdf
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author Yodfiatfinda,
Shamsudin, Mad Nasir
Mohamed, Zainalabidin
Yusop, Zulkornain
Radam, Alias
author_facet Yodfiatfinda,
Shamsudin, Mad Nasir
Mohamed, Zainalabidin
Yusop, Zulkornain
Radam, Alias
author_sort Yodfiatfinda,
building UPM Institutional Repository
collection Online Access
description Food processing industry plays an important role in the Malaysian economy. The industry contributes about 10% to the total manufacturing output. This study aims to investigate the impacts of foreign ownership and openness to productivity growth in the Malaysian Food Processing Industry (FPI). A non parametric approach Data Envelopment Analysis (DEA) was employed to examine the total factor productivity growth. We employ five-digit panel data for the period of 2000-2006. The data was tested for stationary using Augmented Dickey Fuller (ADF) unit root test, and Hausman specification test to obtain the more appropriate model. Fixed effect model is the best model for estimation factor affecting total factor productivity growth in the small and medium enterprises (SMEs) and the large scale enterprises (LSEs). The Malaysian FPI was experiencing with negative total factor productivity growth (- 1.3%) in the SMEs and positive (7.3%) in the LSEs during 2001 to 2006. The results also suggest that foreign ownership is positively affecting total factor productivity growth both in the SMEs and the LSEs but not significant. However, openness is positively influencing the productivity growth in the SMEs and significant at five percent confidence level in the LSEs.
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format Conference or Workshop Item
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institution Universiti Putra Malaysia
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language English
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publishDate 2011
recordtype eprints
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spelling upm-210382015-05-27T04:12:31Z http://psasir.upm.edu.my/id/eprint/21038/ Foreign ownership and openness in the Malaysian food processing industry: impact on productivity growth. Yodfiatfinda, Shamsudin, Mad Nasir Mohamed, Zainalabidin Yusop, Zulkornain Radam, Alias Food processing industry plays an important role in the Malaysian economy. The industry contributes about 10% to the total manufacturing output. This study aims to investigate the impacts of foreign ownership and openness to productivity growth in the Malaysian Food Processing Industry (FPI). A non parametric approach Data Envelopment Analysis (DEA) was employed to examine the total factor productivity growth. We employ five-digit panel data for the period of 2000-2006. The data was tested for stationary using Augmented Dickey Fuller (ADF) unit root test, and Hausman specification test to obtain the more appropriate model. Fixed effect model is the best model for estimation factor affecting total factor productivity growth in the small and medium enterprises (SMEs) and the large scale enterprises (LSEs). The Malaysian FPI was experiencing with negative total factor productivity growth (- 1.3%) in the SMEs and positive (7.3%) in the LSEs during 2001 to 2006. The results also suggest that foreign ownership is positively affecting total factor productivity growth both in the SMEs and the LSEs but not significant. However, openness is positively influencing the productivity growth in the SMEs and significant at five percent confidence level in the LSEs. 2011 Conference or Workshop Item NonPeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/21038/1/ID%2021038.pdf Yodfiatfinda, and Shamsudin, Mad Nasir and Mohamed, Zainalabidin and Yusop, Zulkornain and Radam, Alias (2011) Foreign ownership and openness in the Malaysian food processing industry: impact on productivity growth. In: International Conference on Management (ICM 2011) Proceeding (13-14 Jun 2011) hosted in Pulau Pinang, Malaysia, 13-14 Jun 2011, Pulau Pinang, Malaysia. (pp. 508-536). Food industry and trade - Malaysia Industrial productivity
spellingShingle Food industry and trade - Malaysia
Industrial productivity
Yodfiatfinda,
Shamsudin, Mad Nasir
Mohamed, Zainalabidin
Yusop, Zulkornain
Radam, Alias
Foreign ownership and openness in the Malaysian food processing industry: impact on productivity growth.
title Foreign ownership and openness in the Malaysian food processing industry: impact on productivity growth.
title_full Foreign ownership and openness in the Malaysian food processing industry: impact on productivity growth.
title_fullStr Foreign ownership and openness in the Malaysian food processing industry: impact on productivity growth.
title_full_unstemmed Foreign ownership and openness in the Malaysian food processing industry: impact on productivity growth.
title_short Foreign ownership and openness in the Malaysian food processing industry: impact on productivity growth.
title_sort foreign ownership and openness in the malaysian food processing industry: impact on productivity growth.
topic Food industry and trade - Malaysia
Industrial productivity
url http://psasir.upm.edu.my/id/eprint/21038/
http://psasir.upm.edu.my/id/eprint/21038/1/ID%2021038.pdf