Singapore's Manufacturing Industries Research Articles

Automation and production efficiency: An empirical analysis of ten manufacturing industries in a newly industrialised economy

Although considerable work has been done in the past two decades to quantitatively analyse the production and growth experience of many developing and developed countries, relatively little research has been done in evaluating the performance of the newly industrialised economies. Based on the 1989 census data, relevant production indices of ten major manufacturing industries in Singapore were analysed by estimating their stochastic production frontiers. The indices analysed include the average technical efficiency of firms, capital intensities, capital and labour elasticities and the marginal rate of technical substitution between labour and capital. In addition, technical inefficiencies of individual firms were estimated and collated with several hypothesized influences. These estimates will provide policy–makers with valuable information to evaluate the performance of the industries and to formulate strategic plans to lead the economy to higher economic growth.

Shiftwork in manufacturing industries in Singapore.

Shiftwork in manufacturing industries in Singapore.

OUTSOURCING AND FRAGMENTATION IN SINGAPORE'S MANUFACTURING INDUSTRY

This paper studies the impact of outsourcing on productive performance of manufacturing industries in Singapore. The paper develops an outsourcing measure based on the narrow definition of intermediate imports given by Feenstra and Hanson (1996, 1999). Based on the input-output tables, the study uses 5-digit industrial-level classifications to measure the impact of outsourcing on productivity of the manufacturing industries in Singapore from 1995–2004. The outsourcing measure is further decomposed by import of services, import of IT services and import of business services. This decomposition allows us to study the impact of outsourcing of services in addition to the cross-border fragmentation of products and components. The results suggest strong positive impact of cross-border sourcing on the productivity of the manufacturing sector. The decomposition of outsourcing measure indicates that the manufacturing industries are more involved in cross-border sourcing of services, particularly in business services.

The Conundrum of Economic Miracle: Manufacturing Growth without TFP Growth

The findings of low or even negative total factor productivity (TFP) growth in Singapore's manufacturing industries by Young (1995) and many others has been a controversial issue in view of its crucial role in the future sustainability of Singaporean manufacturing. This paper applies the varying coefficients frontier model to re-examine productivity growth in Singapore's manufacturing at the 3-digit industry level over the period 1970–1997. The results indicate that Singapore's manufacturing has on average experienced a –0.8 percent TFP growth per annum although the extent of TFP growth improved slightly in the 1990s. The decomposition of TFP growth into technical efficiency change and technological progress, found technological regress is responsible for the negative TFP growth. Factor accumulation remains the principal contributor to the economic miracle of Singapore's manufacturing industries.

The impact of export growth and scale economies on productivity in Singapore's manufacturing industries

This paper examines the impact of export performance and scale economies on total factor productivity in Singapore's manufacturing sector. A panel data of total of ten major industries within its manufacturing sector are analysed over the period 1974‐1995. It was found that export growth and scale economies contributed significantly to the productivity growth of selected industries. In addition, the results also indicate that the foreign direct investment (FDI) intensive industries are the main contributors to productivity growth in the manufacturing industries in terms of export performance and economies of scale as compared to the non‐FDI intensive industries.

Growth and Productivity in Singapore Manufacturing Industries: 1975-1998

Growth and Productivity in Singapore Manufacturing Industries: 1975-1998

Growth and Productivity in Singapore Manufacturing Industries: 1975–1998

Consistently defined price and volume relatives are constructed for 18 manufacturing industries under the two-digit industry classifications officially adopted in 1996. Industry-specific output and materials price deflators for the period 1974–1998 are also constructed. Where the comparison is possible, we arrive at a markedly different conclusion from those in Tsao (1982, 1985) and Young (1994), and narrow the cause to a difference in the choice of output measure. The updated accounts show that the conventional index number measure of total factor productivity growth (TFPG) for Singapore manufacturing is 2.7% per annum for the period 1975–1998, and exhibits a cyclical pattern over time.

How technically efficient are Singapore's manufacturing industries?

This study attempts to understand the technical efficiency performance (i.e. how well resources and given technology are being used) in 28 manufacturing industries in Singapore from 1975–1994, using an improved version of the stochastic frontier model. In addition, an analytical model is used to investigate the causes of technical inefficiency in these industries to help policy formulation. The efficiency performance of foreign and local-dominated industries is also closely examined.

Technical change and total factor productivity growth: a study of Singapore's manufacturing industries

The paper focuses onthe difference between the dual rate of technical change and the total factor productivity growth (TFPG). It estimates directly the dual rate of technical change from an integrated model that describes the cost structure and equilibrium condition of Singapore's manufacturing industries. It then calculates TFPG using the conventional productivity accounting approach. By showing the difference between the two measures, it is demonstrated that the non-parametric calculated TFPG cannot be interpreted wholly as a cost saving technical change since the preconditions required in the calculation of TFPG are not met. It is found that the majority of Singapore's manufacturing industries exhibit, on the one hand, substantial increasing returns to scale and, on the other hand, no significant technical change. However, the largest and fastest growing industries such as Electronic Products and Components show both significant cost-saving technical progress and decreasing returns to scale.

On measuring total factor productivity growth in Singapore's manufacturing industries

This paper concerns the recently published article on Singapore's manufacturing industries' total factor productivity growth (TFPG) by Leung (Applied Economics Letters, 4, 1997). While agreeing with his overall results, the issues discussed in this paper are about the limitations in the method of his analysis and explanation. The stochastic production frontier approach is also suggested as an alternative method to study TFPG.

Total factor productivity growth in Singapore's manufacturing industries

This paper contributes to the debate concerning the sources of growth of newly industrializing East Asian economies, of which Singapore is an example. We first of all measure Total Factor Productivity (TFP) growth from industry level data for Singapore over a time series, and then regress the estimates to a list of variables. The TFP growth is estimated to be around 2–3% per annum over the last ten years, somewhat higher than previous estimates but remains a small fraction of the actual GDP growth. The variables found to have significant influence on TFP growth include foreign ownership, export orientation, and remuneration per employee. The result also suggests that Singapore has not gained much from learning-by-doing.

Total factor productivity growth in the Singapore manufacturing industries during the 1980's

This paper evaluates the TFP growth of 27 manufacturing industries in Singapore during the 1980's. The average TFP growth for the overall manufacturing sector was 1.6 percent per annum during the period. Although material and capital inputs accounted for larger shares of the manufacturing output growth, the contribution of TFP growth was quite significant. There was also an improvement in TFP performance between the first and second halves of the 1980's. In addition, structural change had been found to be an important element of manufacturing TFP growth. The observed procyclical fluctuations in TFP grwoth had also been found to be the result of supply-side, rather than demand-side, shocks.

Manufacturing Education and Research in Singapore

Abstract This paper describes the progress of Singapore's manufacturing industries during the last 10 years. It also reports on two important national plans that were launched to set the direction and focus to research and development in manufacturing technologies. This work also addresses the level of manufacturing curricula at universities and discusses the current status of manufacturing research and development carried out by research institutes and several tertiary institutions.