Abstract: The role of the services sector and its contribution to economic growth in Malaysia has become increasingly important. The contribution of the services sector to Gross Domestic Product (GDP) and employment has increased continuously, since the 1990s. In this regard, the productivity of this sector, especially the growth of Total Factor Productivity (TFP), ought to be given due emphasis in order to strengthen and improve its competitiveness. This study aims to discuss the growth and the contribution of TFP to output growth of the services sector as a whole and in terms of selected services sub-sectors. The analysis in this study is based on data from the Survey of Selected Service Industries for the period 1985-2006 obtained from the Department of Statistics, Malaysia. The findings show that the real estate agents sub-sector has the highest TFP growth and the contribution of TFP growth to output growth in this sub-sector is found to be very significant.
Idris Jajri and Rahmah Ismail, 2014. Total Factor Productivity and Output Growth of the Services Sector in Malaysia. Research Journal of Applied Sciences, 9: 936-940.