• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.12
• /
• pp.75-83
• /
• 2021

Variation in demand, natural resource availability, and technological advancement within a country are the main reasons for necessitating export and import activities between nations. Accordingly, this paper aims to analyze the effect of economic openness on Multifactor Productivity (MFP) in selected Asian countries (Vietnam, Thailand, The Philippines, Indonesia, Cambodia, China, Japan, Malaysia, South Korea, and Singapore) based on data for the period 1990-2018. The analysis conducted in the study employed the panel ARDL approach based on the estimation by Pooled Mean Group (PMG), Mean Group (MG), and Dynamic Fixed Effect (DFE). The Hausman test conducted indicates that the PMG estimation is better than that of MG and DFE since it has a higher variability value than the significance value. The results revealed that economic openness is able to elicit significant and positive effects on short-term and long-term MFP growth. In addition, the study established that other variable, such as the number of schooling years, are also able to produce a positive and significant effect on MFP growth in the long term. Since economic openness can impact MFP growth, every country should thus increase its export activities through more capital and worker inputs that will stimulate greater production.

• International Area Studies Review
• /
• v.15 no.2
• /
• pp.125-150
• /
• 2011

As the economy grows, there is a concern that the economic development causes a productivity reduction because of the service intensive growth. However, the economy of developed countries encounter with the productivity growth as their economy grows, which phenomenon called Baumol's paradox. Oulton (1999, 2001) find out the reason of Baumol's paradox in a forward and backward chain effects. So, this paper is aimed at verifying the theory of Oulton (1999, 2001). Moreover, we test the difference effect between a consumer service and producer service input using a dummy variable. We use the Input-Output Table (1990, 1995, 2000, 2005) that is offered by the Bank of Korea to accomplish the purpose of our research that is represented above. We find out that the Korea's intermediate producer service inputs cause a multifactor productivity growth. That result is matched with the Oulton (1999, 2001)'s theory. But, the intermediate consumer service inputs don't have a significant effect on a multifactor productivity. The result of verifying the effect of intermediate producer service inputs among industries shows that the effects on manufacture industries are less than other industries.

• International Commerce and Information Review
• /
• v.14 no.2
• /
• pp.271-293
• /
• 2012

As service industry became more important, many of studies have been done on the role of service. Such studies has been researched focusing on the relationship between the service intensity in the economy and a country's productivity. Baumal(1967) suggested that service growth in economy would bring about decrease in productivity. However, the economy of developed countries encounter with the productivity growth as their economy grows, which phenomenon called Baumol's paradox. Oulton (1999, 2001) find out the reason of Baumol's paradox in a forward and backward chain effects. So, this paper is aimed at verifying the theory of Oulton (1999, 2001) for 13 OECD countries using panel data analysis. We find out that the intermediate knowledge-intensive service inputs cause a multifactor productivity growth.