Analysis of a dataset encompassing manufacturing firms from the World Bank Enterprise Survey reveals a concerning trend: foreign ownership appears to constrain R&D expenditures.
As ASEAN commemorates its 56th anniversary this year, Indonesia as the chair is highlighting the theme of "ASEAN Matters: Epicentrum of Growth". This theme encapsulates both promise and challenge. ASEAN nations grapple with disparities in total factor productivity (TFP), a key economic indicator that measures the ratio of output to the combined inputs of capital and labor, which stands as a comprehensive yardstick for productivity and the efficiency of resource utilization in the production process.
Early International Monetary Fund (IMF) studies underscore significant discrepancies among ASEAN member states. From 1978 to 1996, Singapore (2.2 percent), Thailand (2.0 percent), and Malaysia (2.0 percent) exhibited more robust TFP growth, while Indonesia trailed at 1.2 percent and the Philippines even experienced negative performance (-0.8 percent). A more recent 2018 study by the ASEAN Secretariat highlighted a persistent divide, revealing that seven out of ten ASEAN countries witnessed negative average TFP growth rates, with Malaysia, Singapore and Thailand as the exceptions.
This article was published in thejakartapost.com with the title "". Click to read: https://www.thejakartapost.com/opinion/2023/08/28/asean-must-nurture-growth-at-epicenter.html.