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The empirical evaluation of productivity growth and efficiency of LSEs in the Malaysian food processing industry

This study investigates productivity growth and efficiency of Large Scale Enterprises (LSEs) in the Malaysian food processing industry. Malmquist productivity index of Data Envelopment Analysis (DEA) was employed to five-digit panel data for the period of 2000-2006. The findings suggest that average...

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Main Authors: Yodfiatfinda,, Shamsudin, Mad Nasir, Mohamed, Zainal Abidin, Hussein, Md. Ariff, Yusop, Zulkornain, Radam, Alias
Format: Article
Language:English
Published: Faculty of Food Science and Technology, Universiti Putra Malaysia 2012
Online Access:http://psasir.upm.edu.my/id/eprint/41056/1/The%20empirical%20evaluation%20of%20productivity%20growth%20and%20efficiency%20of%20LSEs%20in%20the%20Malaysian%20food%20processing%20industry.pdf
http://psasir.upm.edu.my/id/eprint/41056/
http://www.ifrj.upm.edu.my/19%20%2801%29%202011/%2838%29IFRJ-2011-122%20Yodfiatfinda.pdf
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spelling my.upm.eprints.410562015-12-10T01:22:57Z http://psasir.upm.edu.my/id/eprint/41056/ The empirical evaluation of productivity growth and efficiency of LSEs in the Malaysian food processing industry Yodfiatfinda, Shamsudin, Mad Nasir Mohamed, Zainal Abidin Hussein, Md. Ariff Yusop, Zulkornain Radam, Alias This study investigates productivity growth and efficiency of Large Scale Enterprises (LSEs) in the Malaysian food processing industry. Malmquist productivity index of Data Envelopment Analysis (DEA) was employed to five-digit panel data for the period of 2000-2006. The findings suggest that average Technical Efficiency (TE) of the LSEs was 0.683 during the period of observation, which indicates that the industries are able to expand their output as much as 31.7 percent by using the same level of inputs. Total Factor Productivity (TFP) growth was positive at 7.3 percent, which is contributed by a Technical Efficiency Change (EFCH) of 4.3 percent and Technological Change (TECH) of 3.0 percent. Sub industries of manufacturing alcohol and wine as well as the processing and preserving of meat and meat products shows the highest productivity growth at 84.8 percent and 47.5 percent respectively. On the other hand, the sub industries of processing and preserving poultry and poultry products together with the manufacturing of chocolate are those which have the lowest TFP growth at -30.5percent and -14.8 percent respectively. The significant determinants of the productivity growth, with a positive relationship are public infrastructure, IT expenditure and foreign ownership, while energy price is the determinant with a negative relationship. The main contributor to the TFP growth of the LSEs in the Malaysian food processing industry is EFCH, however, the LSEs can also improve the TFP growth by moving forward the production frontier as well. Faculty of Food Science and Technology, Universiti Putra Malaysia 2012 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/41056/1/The%20empirical%20evaluation%20of%20productivity%20growth%20and%20efficiency%20of%20LSEs%20in%20the%20Malaysian%20food%20processing%20industry.pdf Yodfiatfinda, and Shamsudin, Mad Nasir and Mohamed, Zainal Abidin and Hussein, Md. Ariff and Yusop, Zulkornain and Radam, Alias (2012) The empirical evaluation of productivity growth and efficiency of LSEs in the Malaysian food processing industry. International Food Research Journal, 19 (1). pp. 287-295. ISSN 1985-4668; ESSN: 2231-7546 http://www.ifrj.upm.edu.my/19%20%2801%29%202011/%2838%29IFRJ-2011-122%20Yodfiatfinda.pdf
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description This study investigates productivity growth and efficiency of Large Scale Enterprises (LSEs) in the Malaysian food processing industry. Malmquist productivity index of Data Envelopment Analysis (DEA) was employed to five-digit panel data for the period of 2000-2006. The findings suggest that average Technical Efficiency (TE) of the LSEs was 0.683 during the period of observation, which indicates that the industries are able to expand their output as much as 31.7 percent by using the same level of inputs. Total Factor Productivity (TFP) growth was positive at 7.3 percent, which is contributed by a Technical Efficiency Change (EFCH) of 4.3 percent and Technological Change (TECH) of 3.0 percent. Sub industries of manufacturing alcohol and wine as well as the processing and preserving of meat and meat products shows the highest productivity growth at 84.8 percent and 47.5 percent respectively. On the other hand, the sub industries of processing and preserving poultry and poultry products together with the manufacturing of chocolate are those which have the lowest TFP growth at -30.5percent and -14.8 percent respectively. The significant determinants of the productivity growth, with a positive relationship are public infrastructure, IT expenditure and foreign ownership, while energy price is the determinant with a negative relationship. The main contributor to the TFP growth of the LSEs in the Malaysian food processing industry is EFCH, however, the LSEs can also improve the TFP growth by moving forward the production frontier as well.
format Article
author Yodfiatfinda,
Shamsudin, Mad Nasir
Mohamed, Zainal Abidin
Hussein, Md. Ariff
Yusop, Zulkornain
Radam, Alias
spellingShingle Yodfiatfinda,
Shamsudin, Mad Nasir
Mohamed, Zainal Abidin
Hussein, Md. Ariff
Yusop, Zulkornain
Radam, Alias
The empirical evaluation of productivity growth and efficiency of LSEs in the Malaysian food processing industry
author_facet Yodfiatfinda,
Shamsudin, Mad Nasir
Mohamed, Zainal Abidin
Hussein, Md. Ariff
Yusop, Zulkornain
Radam, Alias
author_sort Yodfiatfinda,
title The empirical evaluation of productivity growth and efficiency of LSEs in the Malaysian food processing industry
title_short The empirical evaluation of productivity growth and efficiency of LSEs in the Malaysian food processing industry
title_full The empirical evaluation of productivity growth and efficiency of LSEs in the Malaysian food processing industry
title_fullStr The empirical evaluation of productivity growth and efficiency of LSEs in the Malaysian food processing industry
title_full_unstemmed The empirical evaluation of productivity growth and efficiency of LSEs in the Malaysian food processing industry
title_sort empirical evaluation of productivity growth and efficiency of lses in the malaysian food processing industry
publisher Faculty of Food Science and Technology, Universiti Putra Malaysia
publishDate 2012
url http://psasir.upm.edu.my/id/eprint/41056/1/The%20empirical%20evaluation%20of%20productivity%20growth%20and%20efficiency%20of%20LSEs%20in%20the%20Malaysian%20food%20processing%20industry.pdf
http://psasir.upm.edu.my/id/eprint/41056/
http://www.ifrj.upm.edu.my/19%20%2801%29%202011/%2838%29IFRJ-2011-122%20Yodfiatfinda.pdf
_version_ 1643832888117952512
score 13.211869

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