PRODUCTIVITY CONVERGENCE IN ASIA’S ELECTRONIC INDUSTRY

A.M Dayang-Affizzah, Faculty of Economics and Business, Universiti Malaysia Sarawak, Malaysia
Chin-Hong Puah, Faculty of Economics and Business, Universiti Malaysia Sarawak, Malaysia
A.R Rossazana, Faculty of Economics and Business, Universiti Malaysia Sarawak, Malaysia

Published in

EUROPEAN JOURNAL OF BUSINESS RESEARCH
Volume 13, Issue 3, p161-168, October 2013

ABSTRACT

By employing Phillips and Sul (2007) of non linear time varying factor, the paper examines the productivity convergence of high tech electronic industry in Asian countries. The result shows that the divergence in aggregate of all the countries has lead to 4 convergence clubs, lead by India, Indonesia and Korea as core cluster. Philippine and Singapore diverge from the rest of the groups. Such intra-sectoral convergence within the high tech industry might indicate greater specialization within the cluster, thus sharing similar economic structure that leads to possibility to converge among them.

Keywords

Intra-convergence, Non linear time varying factor, Productivity


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