This study develops applications of capital productivity, labour intensity, information and communications technology (ICT) intensity and simultaneous contribution of them; this is referred to as total factor productivity (TFP) per unit of capital (intensity) in ASEAN5 (Malaysia, Indonesia, Philippines, Singapore and Thailand) plus 3 (China, Japan and South Korea). The study fills the gaps in previous studies by providing a statistical analysis in the first step of the estimation to attain the coefficients of the explanatory variables that have been used by econometric approach. It can be reiterated here that in addition, a second step that plugs the parameters of the variables into the model in order to compute the growth rates of productivity indicators includes the calculation of the residual of the model (TFP intensity) and other productivity indicators (such as capital productivity, labour intensity and ICT intensity) being used by growth accounting approach. The results show that high capital input growth resulted in low capital productivity with insignificant technological progress experiences by these countries, while labour intensity had a significant role in achieving fair capital productivity contribution produced by these economies through using huge inputs to produce outputs. The study also finds that the impact of ICT intensity is positive with little contribution to TFP intensity growth.
|Keywords:||ASEAN5 Plus 3, ICT Intensity TFP Intensity, Capital Productivity, Labour Intensity, JEL Classification: E23; C22|
Lecturer, Economics Unit, Faculty of Business and Law, Multimedia University, Melaka, Melaka, Malaysia
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