ICT AND HUMAN CAPITAL INTENSITIES IMPACT ON ASEAN5 PRODUCTIVITY

Abstract

This study assesses the impact of information and communications technology (ICT) and human capital intensities on productivity of ASEAN5 (Malaysia, Indonesia, Philippine, Singapore and Thailand). The factors identified as influencing the labour productivity of ASEAN-5 are the individual contributions of capital deepening (intensity), ICT intensity, human capital intensity and the simultaneous contribution of the quality of these factors. That is expressed as the total factor productivity (TFP) intensity. The results show that the productivity growth of ASEAN-5 is input-driven. The study also finds that the impact of ICT and human capital intensities appears to have been reasonable with little contribution of TFP intensity growth. The results also confirmed that capital intensity had strongly significant role in achieving reasonable labour productivity contribution that produced by these economies through using huge input to produce output.

Keywords

• Information And Communications Technology (ICT), Asean5, Total Factor Productivity (TFP)

ICT AND HUMAN CAPITAL INTENSITIES IMPACT ON ASEAN5 PRODUCTIVITY

Abstract

This study assesses the impact of information and communications technology (ICT) and human capital intensities on productivity of ASEAN5 (Malaysia, Indonesia, Philippine, Singapore and Thailand). The factors identified as influencing the labour productivity of ASEAN-5 are the individual contributions of capital deepening (intensity), ICT intensity, human capital intensity and the simultaneous contribution of the quality of these factors. That is expressed as the total factor productivity (TFP) intensity. The results show that the productivity growth of ASEAN-5 is input-driven. The study also finds that the impact of ICT and human capital intensities appears to have been reasonable with little contribution of TFP intensity growth. The results also confirmed that capital intensity had strongly significant role in achieving reasonable labour productivity contribution that produced by these economies through using huge input to produce output. 

Keywords

• xx

References

1. Bank Negara Malaysia (1999) ‘Annual Report, Government of Malaysia Printers’, Kula Lumpur.
2. Chen, D.H.C. and Dahlman, C.J. (2004) ‘Knowledge and Development: A Cross-Section Approach’, World Bank Policy Research Working Paper No. 3366, November.
3. de Long, J.B. and Summers, L.H. (1991) ‘Equipment investment and economic growth’, Quarterly Journal of Economics, Vol. 106, pp.445–502.
4. Dollar, D. and Sokoloff, K. (1990) ‘Patterns of productivity growth in South Korean manufacturing industries 1963–1979’, Journal of Development Economics, Vol. 33, pp.309–327.
5. Elsadig, M.A. (2006) ‘Carbon dioxide emissions, impact on Malaysia’s manufacturing productivity growth’, World Review of Science, Technology and Sustainable Development Vol.3, 1:.58–69.
6. Elsadig, M.A. (2006) ‘ICT and Human Capital Role In Achieving Knowledge-based Economy: Applications On Malaysia’s Manufacturing’, Journal of Information and Knowledge Management Vol.5, 2:1–12.
7. Engle and Granger (2003) ‘Time-series Econometrics: Cointegration and Autoregressive Conditional Heteroskedasticity’, Advanced information on the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel.
8. Felipe, J. (2000), ‘On the myth and mystery of Singapore’s Zero TFP’, Asian Economic Journal, Vol. 14, No. 2, pp.187–208.

9. Gordon, R.J. (2000) ‘Does the ‘New Economy’ measure up to the great inventions of the past? Journal of Economic Perspectives’, 14, Fall, 49-74.
10. Grossman, G.M. and Helpman, E. (1991) ‘Innovation and Growth in the Global Economy’, MIT Press, Cambridge MA.
11. Loveman, G. (1994) ‘An assessment of the productivity impact of information technologies, management in the 90s’, in Allen, T.J. and Morton, M.S.S. (Eds.): Information Technology and the Corporation of the 1990s, Oxford University Press.
12. Roach, S. (1987), ‘America’s technology dilemma: A profile of the information economy’, New York: Morgan Stanley.
13. Roach, S. (1988) ‘White-collar productivity: A glimmer of hope?’, New York: Morgan Stanley.
14. Romer, P.M. (1986) ‘Increasing returns and long-run growth’, Journal of Political Economy’, Vol. 94, pp.1002–1037.
15. Strassman, P. (1997) ‘Computers are yet to make companies more productive’, Computerworld, September 15.
16. Wong, F.C. (1993) ‘Patterns of labour productivity growth and employment shift in the Singapore manufacturing industries’, The Singapore Economic Review, Vol. 38, 2, pp.231–251.