Drivers of Labour Productivity Growth Trends in Singapore
This article examines the drivers of Singapore’s labour productivity growth in recent years
First, using shift-share analysis, we find that Singapore’s labour productivity growth from 2009 to 2014 was driven by productivity improvements in most sectors, especially export-oriented sectors. However, the gains were partially offset by a shift in employment towards less productive sectors, including Construction and Food & Beverage Services.
Second, using growth accounting analysis, we find that capital intensity (i.e., capital per worker) and labour quality improvements supported productivity growth over the period of 2009 to 2013. However, there are signs of a slowdown in capital intensity gains (e.g., in terms of machinery & equipment growth), as well as labour quality improvements in more recent years.
The views expressed in this paper are solely those of the authors and do not necessarily reflect those of the Ministry of Trade and Industry or the Government of Singapore.
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