Abstract
This article examines the total factor productivity (TFP) growth by decomposing it into technical efficiency and technological change for the 20 service industries in a developing country – Malaysia from 1987 to 1992. On average, the TFP growth of the service industries experienced positive TFP growth of 1.8%. The contributing factors for TFP growth was technical efficiency while technological regress was found to dampen the TFP progress.
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