A decomposition analysis for labour demand : evidence from Malaysian manufacturing sector

Part of : WSEAS transactions on business and economics ; Vol.11, 2014, pages 32-41

Issue:
Pages:
32-41
Author:
Abstract:
Malaysia experienced four major phases of industrialization, with import substitution or export orientation dominating each phases alternatively. Manufacturing sector is important in Malaysia’s industrial development, inducing rapid growth, technology expansion and upgrading labor skill. High growth rates and high technology expansion in these sector resulted in a substantial increase in demand for labor. Indeed, currently the economy is continuously experiencing further structural adjustments in output and employment as the degree of integration with world markets increases and changes in technology deepen. By using three Malaysian input-output tables; 1978, 1991 and 2000 input-output tables - the present study employs the popular model namely the Structural Decomposition Analysis (SDA). The result also shows that changes in the final demand structure were the major source of labor growth, dominating by domestic demand during 1978-1991 and by export demand during 1991- 2000.
Subject:
Subject (LC):
Keywords:
manufacturing, decomposition, labor, input-output, growth and Malaysia
Notes:
Περιέχει πίνακες και βιβλιογραφία
References (1):
  1. [1] Zirra, D., The impact of the economic criseson Romanian labour market, WSEASTransactions on Business and Economics, Vol.6, No.7, 2009, pp. 362-373.[2] Gouvara, E., Todorova, Y, and Gourov, N.,Skills for future engineers: challenges foruniversities in Bulgaria, WSEAS Transactionson Business and Economic, Vol. 6, No.7,2009, pp. 386-399.[3] Rose, A. & Casler, S., Input-output structuraldecomposition analysis: A critical appraisal.Economic Systems Research, Vol.8, No.1,1996, 8(1), pp. 33-62.[4] Jackson, R. W., Rogerson, P., Plane, D. & O'Huallachain, B., A causative matrix approachto interpreting structural change, EconomicSystems Research,Vol.2, 1990, pp. 259-269.[5] Ciobanu, C., Mattas, K. and Psaltopoulos, D.,Structural changes in less developed areas: Aninput-output framework, Regional Studies.Vol. 38, No.6, 2004,pp. 603-614[6] Chenery, H.B., Interactions betweenindustrialization and exports, AmericanEconomic Review, Vol. 70, 1980, pp. 281-287.[7] Rose, A. and Miernyk, W., Input-outputanalysis: The first fifty years, EconomicSystems Research, Vol.1, 1989, pp. 229-271.[8] Rose, A. and Chen, C. Y., Sources of changein energy use in the US economy 1972-82.Resources and Energy, Vol. 13,1991, pp. 1-21.[9] Carter, A., Structural Change in the AmericanEconomy. Cambridge: Harvard UniversityPress, 1970.[10] Guo, D., Hewings G.J.D. and Sonis M.,Integrating decomposition approaches for theanalysis of temporal changes in economicstructure: an application to Chicago’s economyfrom 1980 to 2000. Economic SystemsResearch, Vol. 17, No. 3, 2005, pp. 297-315.[11] Leontief, W. Structure of the AmericanEconomy, New York: Oxford University Press,1941.[12] Chenery, H.B., Shishido, S., and Watanabe, T.,The Pattern of Japanese Growth, 1914-1954,Econometrica, Vol. 3, No. 1,1963, pp. 98-139.[13] Dietzenbacher, E. and Los, B., Structuraldecomposition analyses with dependentdeterminants. Economic Systems Research,Vol.12, No.4, 2000, pp. 497-512.[14] Skolka, J., Input-output structuraldecomposition analysis for Austria, Journal ofPolicy Modelling, Vol. 11, 1989, pp. 45-66.[15] Miller, R., and Blair, P.D., Input-OutputAnalysis: Foundation and Extensions.Englewood Cliffs, New Jersey: Prentice-HallInc, 1985.[16] Han, X., Structural change and laborrequirement of the Japanese Economy.Economy System Research, Vol. 7, No. 1,1995, pp. 47-65.[17] Malaysia Industrial Classification, Departmentof Statistic, Kuala Lumpur, 1972.[18] Malaysia Standard Industrial ClassificationDepartment of Statistic, Kuala Lumpur, 2000.[19] Mahadeven, R., Is there real TFP growthmeasure for Malaysia’s manufacturingindustries?, ASEAN Economic Bulletin, Vol.19, No. 2, 2002, pp. 178-190.[20] Rahmah, I. and Idris, J., Sources ofproductivity growth in large scale Industries inMalaysia, Malaysia Journal of Economics andManagement, Vol. 34, 2000, pp. 5-75.[21] Hoffman, L. and Tan, T. N., Pattern of Growthand Structural Change in West Malaysia’sManufacturing Industry, 1956-68. In DavidLim. Malaysian Economics Development.Kuala Lumpur: Oxford University Press, 1975.[22] Zakariah, A.R. and Ahmad E. E., Source ofindustrial growth in the Malaysianmanufacturing sector: A factor decompositionapproach, The Developing Economies, Vol.37, No. 2, 1999, pp. 162-196.[23] Rohana, K., Zakariah, A. R. andKamaruzaman, J., An input-output analysis ofsources of growth and key sectors. ModernApplied Science, Vol. 2, No. 3, 2008, pp. 94-109.