The Technical Efficiency Analyses of Manufacturing Sector in Malaysia: Evidence From the First Industrial Master Plan (1986-1995)

Rozilee Asid


This paper attempts to estimates the technical efficiency for all manufacturing industries in Malaysia for the periods of 1986 up to 1995. By utilizing the stochastic frontier model (SFM), it is shows that on average the technical efficiency increase monotonically and steadily at 0.01 percentage point each year. A Malaysian manufacturing industry during this periods was classified as input-driven specifically dominated by labour instead of capital. It was found that the technical efficiency over time across industries is rising over time and the resource based industries (RBI) is found to be more technical efficient compared non-RBI groups

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Asian Social Science   ISSN 1911-2017 (Print)   ISSN 1911-2025 (Online)    Email: 

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