Sources of labor growth in Malaysian manufacturing sector

Poo Bee Tin, Zakariah Abdul Rashid

    Research output: Contribution to journalArticle

    Abstract

    The manufacturing sector plays an important role in Malaysian industrial development. High growth rates and technology expansion in the manufacturing sector resulted in a substantial increase in demand for labor. This process of rapid growth and changes in the demand for labor were also accompanied by changes in labor structure and skills. At the same time, the range of activities and products became more diversified and, correspondingly the composition of manpower sub sectors changed significantly. This study employed the input-output Structural Decomposition Analysis (SDA). The analysis computed the compositional manpower change as a result of decomposition. The result of this study indicates that sources of labor growth in the manufacturing sector were favored by changes in the final demand structure. Within the changes in the final demand structure, changes in domestic demand structure were the dominant source of employment growth between 1978 and 1991 and the overall period 1978-2000. However, from 1991 to 2000, employment change was due mainly to changes in export structure. Changes in the structure of domestic demand had a relatively strong and increasing effect on service workers, production and related workers, transport equipment operators, laborers, and clerical and related workers during the 1978-1991 period. Changes in the export structure were the main factor that had an increasing effect on the employment of high skill workers and sales workers. However, during the second sub period of 1991-2000, manpower growth was exports structure driven.

    Original languageEnglish
    Pages (from-to)325-354
    Number of pages30
    JournalGadjah Mada International Journal of Business
    Volume12
    Issue number3
    Publication statusPublished - Sep 2010

    Fingerprint

    Manufacturing sector
    Labor
    Workers
    Export structure
    Manpower
    Domestic demand
    Demand for labor
    Industrial development
    Employment change
    Operator
    Factors
    Decomposition
    Service workers
    Employment growth
    Structural decomposition analysis

    Keywords

    • Input-output
    • Labor
    • Manufacturing
    • Structural decomposition analysis

    ASJC Scopus subject areas

    • Economics and Econometrics
    • Business and International Management

    Cite this

    Sources of labor growth in Malaysian manufacturing sector. / Tin, Poo Bee; Rashid, Zakariah Abdul.

    In: Gadjah Mada International Journal of Business, Vol. 12, No. 3, 09.2010, p. 325-354.

    Research output: Contribution to journalArticle

    Tin, Poo Bee ; Rashid, Zakariah Abdul. / Sources of labor growth in Malaysian manufacturing sector. In: Gadjah Mada International Journal of Business. 2010 ; Vol. 12, No. 3. pp. 325-354.
    @article{283bf6ac41ed437c8427a9b4e62c4fec,
    title = "Sources of labor growth in Malaysian manufacturing sector",
    abstract = "The manufacturing sector plays an important role in Malaysian industrial development. High growth rates and technology expansion in the manufacturing sector resulted in a substantial increase in demand for labor. This process of rapid growth and changes in the demand for labor were also accompanied by changes in labor structure and skills. At the same time, the range of activities and products became more diversified and, correspondingly the composition of manpower sub sectors changed significantly. This study employed the input-output Structural Decomposition Analysis (SDA). The analysis computed the compositional manpower change as a result of decomposition. The result of this study indicates that sources of labor growth in the manufacturing sector were favored by changes in the final demand structure. Within the changes in the final demand structure, changes in domestic demand structure were the dominant source of employment growth between 1978 and 1991 and the overall period 1978-2000. However, from 1991 to 2000, employment change was due mainly to changes in export structure. Changes in the structure of domestic demand had a relatively strong and increasing effect on service workers, production and related workers, transport equipment operators, laborers, and clerical and related workers during the 1978-1991 period. Changes in the export structure were the main factor that had an increasing effect on the employment of high skill workers and sales workers. However, during the second sub period of 1991-2000, manpower growth was exports structure driven.",
    keywords = "Input-output, Labor, Manufacturing, Structural decomposition analysis",
    author = "Tin, {Poo Bee} and Rashid, {Zakariah Abdul}",
    year = "2010",
    month = "9",
    language = "English",
    volume = "12",
    pages = "325--354",
    journal = "Gadjah Mada International Journal of Business",
    issn = "1411-1128",
    publisher = "Universitas Gadjah Mada",
    number = "3",

    }

    TY - JOUR

    T1 - Sources of labor growth in Malaysian manufacturing sector

    AU - Tin, Poo Bee

    AU - Rashid, Zakariah Abdul

    PY - 2010/9

    Y1 - 2010/9

    N2 - The manufacturing sector plays an important role in Malaysian industrial development. High growth rates and technology expansion in the manufacturing sector resulted in a substantial increase in demand for labor. This process of rapid growth and changes in the demand for labor were also accompanied by changes in labor structure and skills. At the same time, the range of activities and products became more diversified and, correspondingly the composition of manpower sub sectors changed significantly. This study employed the input-output Structural Decomposition Analysis (SDA). The analysis computed the compositional manpower change as a result of decomposition. The result of this study indicates that sources of labor growth in the manufacturing sector were favored by changes in the final demand structure. Within the changes in the final demand structure, changes in domestic demand structure were the dominant source of employment growth between 1978 and 1991 and the overall period 1978-2000. However, from 1991 to 2000, employment change was due mainly to changes in export structure. Changes in the structure of domestic demand had a relatively strong and increasing effect on service workers, production and related workers, transport equipment operators, laborers, and clerical and related workers during the 1978-1991 period. Changes in the export structure were the main factor that had an increasing effect on the employment of high skill workers and sales workers. However, during the second sub period of 1991-2000, manpower growth was exports structure driven.

    AB - The manufacturing sector plays an important role in Malaysian industrial development. High growth rates and technology expansion in the manufacturing sector resulted in a substantial increase in demand for labor. This process of rapid growth and changes in the demand for labor were also accompanied by changes in labor structure and skills. At the same time, the range of activities and products became more diversified and, correspondingly the composition of manpower sub sectors changed significantly. This study employed the input-output Structural Decomposition Analysis (SDA). The analysis computed the compositional manpower change as a result of decomposition. The result of this study indicates that sources of labor growth in the manufacturing sector were favored by changes in the final demand structure. Within the changes in the final demand structure, changes in domestic demand structure were the dominant source of employment growth between 1978 and 1991 and the overall period 1978-2000. However, from 1991 to 2000, employment change was due mainly to changes in export structure. Changes in the structure of domestic demand had a relatively strong and increasing effect on service workers, production and related workers, transport equipment operators, laborers, and clerical and related workers during the 1978-1991 period. Changes in the export structure were the main factor that had an increasing effect on the employment of high skill workers and sales workers. However, during the second sub period of 1991-2000, manpower growth was exports structure driven.

    KW - Input-output

    KW - Labor

    KW - Manufacturing

    KW - Structural decomposition analysis

    UR - http://www.scopus.com/inward/record.url?scp=84859823040&partnerID=8YFLogxK

    UR - http://www.scopus.com/inward/citedby.url?scp=84859823040&partnerID=8YFLogxK

    M3 - Article

    VL - 12

    SP - 325

    EP - 354

    JO - Gadjah Mada International Journal of Business

    JF - Gadjah Mada International Journal of Business

    SN - 1411-1128

    IS - 3

    ER -