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Technological change and technical efficiency in the Malaysian mobile telecommunications industry

Mohamad, Noorihsan (2004) Technological change and technical efficiency in the Malaysian mobile telecommunications industry. In: The Ninth International Convention of the East Asian Economic Association, 13th-14th Nov. 2004, Hong Kong. (Unpublished)

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Abstract

This paper explores and analyzes the change in the productivity of Malaysian mobile telecommunications industry during the period 1996 to 2001. The data consists of a panel of five mobile service providers in Malaysia namely Celcom, DiGi, Maxis, TimeCel and TM Cellular. Productivity has been measured by the Malmquist index, using a Data Envelopment Analysis (DEA) technique. The Malmquist productivity measures are decomposed into two components:efficiency change and technical change index. The results showed that Total Factor Productivity (TFP) has increased significantly for the whole industry in which technical change has been the most important source of productivity growth to Malaysian mobile telecommunications industry. Low level of efficiency change in the industry indicates a great potential for the industry to increase productivity through higher utilization of technology as well as technological knowledge dispersion. Continuous training programs to familiarize and improve technical expertise appear to offer better prospects for Malaysian mobile telecommunications industry to achieve greater productivity growth.

Item Type: Conference or Workshop Item (Full Paper)
Additional Information: 3623/9137
Uncontrolled Keywords: Total factor productivity, Telecommunication industry, Data envelopment analysis
Subjects: H Social Sciences > HE Transportation and Communications > HE9713 Cellular telephone services industry. Wireless telephone industry
T Technology > T Technology (General) > T173.2 Technological change
Kulliyyahs/Centres/Divisions/Institutes: Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User: Dr. Noorihsan Mohamad
Date Deposited: 27 Aug 2015 14:20
Last Modified: 27 Aug 2015 14:20
URI: http://irep.iium.edu.my/id/eprint/9137

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