E3 Journal of Business Management and Economics

E3 Journal of Business Management and Economics Vol. 2 (2) pp. 069-074, August 2011; © E3 Journals; ISSN 2141-7482

Measuring the Effects of Labour Productivity on ASEAN5 Plus 3 Economic Growth

Abstract

This paper analyses the effects of labour productivity, capital deepening and total factor productivity (TFP) intensity in ASEAN5 (Malaysia, Indonesia, Philippines, Singapore and Thailand) plus 3 (China, Japan and South Korea). The results of this study show that there was slight contribution of the TFP intensity to the economic growth of these countries during the periods of the study. The results also confirm that capital intensity had a strongly significant role in achieving light labour productivity contribution that had been produced by most of these economies through using huge inputs (such as physical, capital and labour) to produce outputs. The results show that the productivity growth of most of these countries is input driven, however, the South Korean model is moving to be a productivity driven; Japan is productivity driven as the only Asian nation that joined the industrial club which is dominated by Western nations. JEL classification: E23; C22

Keywords: ASEAN5 plus 3, input driven, TFP intensity, labour productivity, capital deepening.