From Farms to Factories and Firms : Structural Transformation and Labor Productivity Growth in Malaysia

This study aims to provide a quantitative and integrated analysis of long-term structural transformation and labor productivity growth in Malaysia. Using data from the Department of Statistics Malaysia from 1987 to 2018 and decompositions that take...

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Main Authors:	Abdur Rahman, Amanina, Schmillen, Achim
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2020
Subjects:	LABOR PRODUCTIVITY STRUCTURAL TRANSFORMATION GROWTH DRIVERS DEINDUSTRIALIZATION DECOMPOSITION ANALYSIS EMPLOYMENT
Online Access:	http://documents.worldbank.org/curated/en/498221604428665083/From-Farms-to-Factories-and-Firms-Structural-Transformation-and-Labor-Productivity-Growth-in-Malaysia http://hdl.handle.net/10986/34730

id	okr-10986-34730
recordtype	oai_dc
spelling	okr-10986-347302022-09-20T00:10:27Z From Farms to Factories and Firms : Structural Transformation and Labor Productivity Growth in Malaysia Abdur Rahman, Amanina Schmillen, Achim LABOR PRODUCTIVITY STRUCTURAL TRANSFORMATION GROWTH DRIVERS DEINDUSTRIALIZATION DECOMPOSITION ANALYSIS EMPLOYMENT This study aims to provide a quantitative and integrated analysis of long-term structural transformation and labor productivity growth in Malaysia. Using data from the Department of Statistics Malaysia from 1987 to 2018 and decompositions that take account of the static and dynamic efficiency gains from labor reallocation, it documents that Malaysia has undergone structural transformation from an agriculture-driven to a services-driven economy. However, in contrast to common perceptions, the country's impressive growth in output per capita over the past three decades can largely be attributed not to its structural transformation but instead to sustained growth in within-sector labor productivity. At 3 percent, the contribution of between-sector reallocation of labor to growth in output per capita in Malaysia has been relatively low. Accordingly, together with efforts to spur the more productive reallocation of labor across sectors and positively affect the employment rate, the main policy challenge for Malaysia going forward will be to achieve sustainable labor productivity growth within various sectors. 2020-11-05T15:28:27Z 2020-11-05T15:28:27Z 2020-11 Working Paper http://documents.worldbank.org/curated/en/498221604428665083/From-Farms-to-Factories-and-Firms-Structural-Transformation-and-Labor-Productivity-Growth-in-Malaysia http://hdl.handle.net/10986/34730 English Policy Research Working Paper;No. 9463 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research 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	LABOR PRODUCTIVITY STRUCTURAL TRANSFORMATION GROWTH DRIVERS DEINDUSTRIALIZATION DECOMPOSITION ANALYSIS EMPLOYMENT
spellingShingle	LABOR PRODUCTIVITY STRUCTURAL TRANSFORMATION GROWTH DRIVERS DEINDUSTRIALIZATION DECOMPOSITION ANALYSIS EMPLOYMENT Abdur Rahman, Amanina Schmillen, Achim From Farms to Factories and Firms : Structural Transformation and Labor Productivity Growth in Malaysia
geographic_facet	East Asia and Pacific Malaysia
relation	Policy Research Working Paper;No. 9463
description	This study aims to provide a quantitative and integrated analysis of long-term structural transformation and labor productivity growth in Malaysia. Using data from the Department of Statistics Malaysia from 1987 to 2018 and decompositions that take account of the static and dynamic efficiency gains from labor reallocation, it documents that Malaysia has undergone structural transformation from an agriculture-driven to a services-driven economy. However, in contrast to common perceptions, the country's impressive growth in output per capita over the past three decades can largely be attributed not to its structural transformation but instead to sustained growth in within-sector labor productivity. At 3 percent, the contribution of between-sector reallocation of labor to growth in output per capita in Malaysia has been relatively low. Accordingly, together with efforts to spur the more productive reallocation of labor across sectors and positively affect the employment rate, the main policy challenge for Malaysia going forward will be to achieve sustainable labor productivity growth within various sectors.
format	Working Paper
author	Abdur Rahman, Amanina Schmillen, Achim
author_facet	Abdur Rahman, Amanina Schmillen, Achim
author_sort	Abdur Rahman, Amanina
title	From Farms to Factories and Firms : Structural Transformation and Labor Productivity Growth in Malaysia
title_short	From Farms to Factories and Firms : Structural Transformation and Labor Productivity Growth in Malaysia
title_full	From Farms to Factories and Firms : Structural Transformation and Labor Productivity Growth in Malaysia
title_fullStr	From Farms to Factories and Firms : Structural Transformation and Labor Productivity Growth in Malaysia
title_full_unstemmed	From Farms to Factories and Firms : Structural Transformation and Labor Productivity Growth in Malaysia
title_sort	from farms to factories and firms : structural transformation and labor productivity growth in malaysia
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/498221604428665083/From-Farms-to-Factories-and-Firms-Structural-Transformation-and-Labor-Productivity-Growth-in-Malaysia http://hdl.handle.net/10986/34730
_version_	1764481533617373184

From Farms to Factories and Firms : Structural Transformation and Labor Productivity Growth in Malaysia

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