Resource Misallocation and Productivity Gaps in Malaysia
The reallocation of resources from low- to high-productivity firms can generate large aggregate productivity gains. The paper uses data from the Malaysian manufacturing census to measure the country's hypothetical productivity gains when movin...
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/916081521465294530/Resource-misallocation-and-productivity-gaps-in-Malaysia http://hdl.handle.net/10986/29495 |
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okr-10986-294952021-06-08T14:42:45Z Resource Misallocation and Productivity Gaps in Malaysia Chuah, Lay Lian Loayza, Norman V. Nguyen, Ha TOTAL FACTOR PRODUCTIVITY RESOURCE ALLOCATION RESOURCE MISALLOCATION DISTORTIONS EFFICIENCY ECONOMIC GROWTH MANUFACTURING The reallocation of resources from low- to high-productivity firms can generate large aggregate productivity gains. The paper uses data from the Malaysian manufacturing census to measure the country's hypothetical productivity gains when moving toward the level of within-sector allocative efficiency in the United States to be between 13 and 36 percent. Across three census periods in 2000, 2005, and 2010 (the most recent available), the productivity gaps appear to have somewhat widened. This suggests that the "catching-up" process remains a challenge and a potential opportunity, particularly if total factor productivity is expected to be the dominant source of future economic growth. The simulations, based on different magnitudes of the realization of hypothetical productivity gains, show that Malaysia's gross domestic product growth can potentially increase by 0.4 to 1.3 percentage points per year over five years. The analysis accounts only for resource misallocation within sectors. There may be other, possibly large, resource misallocation across sectors. If so, closing those gaps could boost total factor productivity and gross domestic product growth even further. 2018-03-20T15:17:02Z 2018-03-20T15:17:02Z 2018-03 Working Paper http://documents.worldbank.org/curated/en/916081521465294530/Resource-misallocation-and-productivity-gaps-in-Malaysia http://hdl.handle.net/10986/29495 English Policy Research Working Paper;No. 8368 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Malaysia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
TOTAL FACTOR PRODUCTIVITY RESOURCE ALLOCATION RESOURCE MISALLOCATION DISTORTIONS EFFICIENCY ECONOMIC GROWTH MANUFACTURING |
| spellingShingle |
TOTAL FACTOR PRODUCTIVITY RESOURCE ALLOCATION RESOURCE MISALLOCATION DISTORTIONS EFFICIENCY ECONOMIC GROWTH MANUFACTURING Chuah, Lay Lian Loayza, Norman V. Nguyen, Ha Resource Misallocation and Productivity Gaps in Malaysia |
| geographic_facet |
East Asia and Pacific Malaysia |
| relation |
Policy Research Working Paper;No. 8368 |
| description |
The reallocation of resources from low-
to high-productivity firms can generate large aggregate
productivity gains. The paper uses data from the Malaysian
manufacturing census to measure the country's
hypothetical productivity gains when moving toward the level
of within-sector allocative efficiency in the United States
to be between 13 and 36 percent. Across three census periods
in 2000, 2005, and 2010 (the most recent available), the
productivity gaps appear to have somewhat widened. This
suggests that the "catching-up" process remains a
challenge and a potential opportunity, particularly if total
factor productivity is expected to be the dominant source of
future economic growth. The simulations, based on different
magnitudes of the realization of hypothetical productivity
gains, show that Malaysia's gross domestic product
growth can potentially increase by 0.4 to 1.3 percentage
points per year over five years. The analysis accounts only
for resource misallocation within sectors. There may be
other, possibly large, resource misallocation across
sectors. If so, closing those gaps could boost total factor
productivity and gross domestic product growth even further. |
| format |
Working Paper |
| author |
Chuah, Lay Lian Loayza, Norman V. Nguyen, Ha |
| author_facet |
Chuah, Lay Lian Loayza, Norman V. Nguyen, Ha |
| author_sort |
Chuah, Lay Lian |
| title |
Resource Misallocation and Productivity Gaps in Malaysia |
| title_short |
Resource Misallocation and Productivity Gaps in Malaysia |
| title_full |
Resource Misallocation and Productivity Gaps in Malaysia |
| title_fullStr |
Resource Misallocation and Productivity Gaps in Malaysia |
| title_full_unstemmed |
Resource Misallocation and Productivity Gaps in Malaysia |
| title_sort |
resource misallocation and productivity gaps in malaysia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/916081521465294530/Resource-misallocation-and-productivity-gaps-in-Malaysia http://hdl.handle.net/10986/29495 |
| _version_ |
1764469495388176384 |