Int. J. Sustainable Economy, Vol. 1, No. 3, 2009 245
Copyright © 2009 Inderscience Enterprises Ltd.
Capital productivity determinants: East Asian
perspectives
Elsadig Musa Ahmed
Faculty of Business and Law,
Economics Unit,
Multimedia University,
75450 Melaka, Malaysia
E-mails: elsadigmusa@yahoo.com; asadiq29@hotmail.com
Abstract: This study converses the effects of capital productivity and labour
intensity on total factor productivity (TFP) intensity in ASEAN5 countries,
namely Malaysia, Indonesia, Philippines, Singapore and Thailand, plus 3
countries such as China, Japan and South Korea. This study contributes to the
literature of growth accounting method in the area of calculating capital
productivity, labour intensity and their simultaneous contribution, which is
referred to as TFP per unit of capital. The study finds that there is a little
contribution of the TFP intensity growth during the periods of the study and
confirms that high capital input growth resulted in low capital productivity with
insignificant technological progress experiences by these countries.
Keywords: capital productivity; East Asian economies; labour intensity;
sustainable economic growth.
Reference to this paper should be made as follows: Ahmed, E.M. (2009)
‘Capital productivity determinants: East Asian perspectives’, Int. J. Sustainable
Economy, Vol. 1, No. 3, pp.245–254.
Biographical note: Elsadig Musa Ahmed is a Senior Lecturer at Economics
Unit and a Coordinator for Postgraduate programs of the Faculty of Business
and Law, Multimedia University, Melaka, Malaysia. He is a reviewer and an
expert of the second millennium ecosystem assessment report “Biodiversity
and human well-being: a synthesis report for the convention on biological
diversity”, 2005, Economic Modelling, World Review of Science, Technology
and Sustainable Development, International Journal of Economic Policy
Studies, The International Journal of Environmental, Cultural, Economic and
Social Sustainability and Global Studies Journal. He is the author of the book
entitled Green Productivity: Applications in Malaysia’s Manufacturing, 2008.
1 Introduction
International Monetary Fund (IMF, 1998) reports that, over the past three decades, the
economies of East Asia made remarkable economic progress. Following on the heels of
Japan’s double-digit growth in the 1960s, Korea, Taiwan, Hong Kong and Singapore
grew at very rapid rates since mid-1960s, with their per capita incomes rising to match
those in a number of advanced economies in Western Europe. They were followed in the