Does globalisation matter for manufacturing labour productivity?

Idris Jajri, Rahmah Ismail

Research output: Contribution to journalArticle

Abstract

Globalisation process has forced Malaysian manufacturing strengthen its ability to compete at international markets. Globalisation has increased the level of technology, which leads to increasing demand for quality labour, hence labour productivity. The objective of this paper is to analyse the depth of globalisation impact on labour productivity in Malaysian manufacturing sector. The analysis has used the data of the Manufacturing Industrial Survey, Department of Statistics Malaysia, comprising 24 years (1985 to 2008), and selected 6 sub-industries. A multiple regression model using panel data is estimated to analyse the impact of capital intensity, labour including local and foreign, foreign direct investment (FDI), and economic openness on labour productivity. The results show that globalisation indicators like FDI, economic openness and foreign labour have significantly affect labour productivity in manufacturing. While the effect of FDI and economic openness are positive, the effect of foreign labour is negative. In addition, a more capital-intensive industry seems to have greater impact on labour productivity through FDI.

Original languageEnglish
Pages (from-to)330-340
Number of pages11
JournalActual Problems of Economics
Volume147
Issue number9
Publication statusPublished - 2013

Fingerprint

Globalization
Manufacturing
Labour productivity
Foreign direct investment
Economic openness
Labor
Industry
Labor quality
Multiple regression
Globalization processes
Statistics
Capital intensity
Panel data
Malaysia
Manufacturing sector
International markets
Regression model

Keywords

  • Economic opennes
  • Foreign labour
  • Globalisation
  • Labour productivity
  • Manufacturing sector

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Does globalisation matter for manufacturing labour productivity? / Jajri, Idris; Ismail, Rahmah.

In: Actual Problems of Economics, Vol. 147, No. 9, 2013, p. 330-340.

Research output: Contribution to journalArticle

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