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Influences on Labour Productivity in Manufacturing Sector


The research problem plays a crucial role in the research paper because it shows to the audiences the significance of the field being studies, applies the topic issues into a definite situation, and outlines a structure of how the issue will be fathomed (Sekaran, 2003). It has been clearly defined in this journal. The author has raised concern and clarified significantly about the population size, the unemployment rate and labor force issues, which have been halved in the last three decades. In any case, population growth depends relied on upon rate of natural increase and net migration. In congruence, the objective of the research paper has been precisely stated. It has been presented in chronological order. Notwithstanding the lack of hypotheses, in this research paper the research question has been clearly identified, which was to determine how foreign workers influence on labor productivity in Malaysia particularly in manufacturing sector. In addition to whether the domestic and foreign workers are complements or substitute to each other. Unemployment rate, population growth, and labor force participation rate, which were the research variables, were concerned with the key issue. Attention to the explanation of how the immigrant growth in facilitating the tight labor conditions predominantly in the manufacturing sector has been lay emphasis on as it is crucial to comprehend the role of the three variables as it influences the shortage of labor. However, the phenomenon, the three variables, and other specialized terminology in the article were not usefully defined. The author should have examined the multi-dimensional definitions of productivity. It is because various authors have explained productivity in different concepts. In some concepts, productivity is seen in the aspects of openness to the economy, innovation and technology, rather than solely the growth of GDP. In this article, after all, the author has provided an adequate and clear literature review. According to Sekaran and Bougie (2009), excellent literature review must comprise of the elucidation of historical and present information. The historical trend for the both, labor force growth, as well as the GDP growth and the current situation, have been shown. Furthermore, the GDP growth was showed based on economy sectors. The literature review, which has been demonstrated, has assisted the author to explore the trend of labor force and immigration of foreign workers. Likewise, it correctly points out how foreign workers have an impact on economic issues, social aspects, labor productivity or total factor productivity (TPF).


The research methodology has been clearly distinguished. As indicated by Saunders, Lewis, and Thornhill (2009), compelling research methodology ought to comprise of an introduction to the whole methodological approach for determining the research problem, the outline of how well it suits the research design and the portrayal of the data collection method and how it will be investigated. Apparently, inductive approach was utilized in this article. Other than that, it concentrated on the quantitative research whereby the data were gathered from the Department of Statistics of Malaysia. Sekaran and Bougie (2009) highlighted that the quantitative analysis techniques support the researchers to investigate, outline, explain, and determine the relationships and trends of the data. In this way, it improves the audiences’ understanding. There is only one constraint has been recognized, which was missing data. In congruence, the data of manufacturing sector survey was derived from the Department of Statistics of Malaysia. This research claims that the data source collection is reliable and accurate. Three methods have been utilized in this study, which were Unit Root Test, Multivariate Cointegration Test, and Granger Causality Test. Every method has been legitimately regressed and appropriately described. In line with the methodology, ethical issue has been mulled over. For instance, the research topic has been significant thought, and the data has been gathered from a secondary database, which is easily access source. Saunders, Lewis, and Thornhill (2009) emphasized ethical issue in the research context alludes to the suitability of the researchers’ behavior toward the rights of those who are influenced by the research paper.


The author’s major findings have been carefully aligned. This study has concluded the effect precisely for the two type of labor which was domestic workers and foreign workers as well as capital and intermediate input contribution according to each equation, which has been evaluated. It has been critically investigated. This research argued that the domestic labor, foreign labor and material yield positive influence on the labor productivity of the manufacturing industries. Evidently, foreign labor has a significant and positive impact on labor productivity in Malaysia manufacturing sector. The author advised the most efficient way to reduce the dependency on foreign labor based on the help of government. On the contrary, the increase of capital-labor ratio causes a decrease in labor productivity. In this research, the tables and graphs were significantly integrated and coordinated with the context. The author has presented the figures accordingly. It has been divided according to the variables over the period. Concomitantly, there is an issue to be concerned. The numeral data have not been applied to the estimated equation. The author has made a scenario based assumption on the sign of the intercept and slope coefficients. Therefore, the interpretation of the estimated equation is appeared to be somewhat bias. On the other hand, the finding has undoubtedly illustrated the research objective. Moreover, it has provided a secure method of achieving the objective. Be that as it may, it comprised of just on the ground of the result in the research paper. The author should have critically reviewed the productivity of different aspects, which have been conducted by other researchers.


The research results validated the author’s conclusion. It verified the finding whereby increasing the domestic labor, foreign labor, and material will yield positive influence on the labor productivity of the manufacturing industries. However, the capital-labor ratio tends to show the negative relationship on the labor productivity. Furthermore, the author has provided a limitation of the research. According to Bryman and Bell (2007), study boundary has impact in a research paper. At the outset, it gives suggestions and recommendations for further research. Also, it proves how well the researchers analytically concern the research problem and significantly assessed the relevant literature review. Simultaneously, there was a confab of the variance between the author’s research and the previous study. Cooper and Schindler (2001) asserted that a reliable and validity research paper comprises of a correlation with the prior research finding or utilize the accessible studies to support a case. Whereas, Bryman (2007) asserted that the discussion about the existent study highlights the how the current research varies from and extend the existent knowledge. In this research paper, the author has stated that the finding is consistent with the existent study, which was done by Zaleha, Noraini, Rusmawati and Suhaila (2011). The direction for further research has been given in the article. The author has focused on the recommendation of policy and investigates data from each sub-industry in the manufacturing sector. Besides that, the theoretical significance of the research has been emphasized. It is stated that the problem should be tackled at the root especially to face the presence and entry of illegal workers. Despite stressing the theoretical significant, some recommendation on the revision of the practicing in this field has also been included. The author has advised implementing policies such as minimum wage that in turn discourage employers from hiring foreigners, as the will be no wage differences between local and foreign workers. Studies by Meier (2004) and Shimada (2004) have agreed with the same recommendations.


For a typical journal reader, this research paper is suitable and adequate. It is open to the audiences of how foreign workers related to the labor productivity in Malaysian manufacturing sector. It illustrated the trend by make the most of the data, which have been collected, to run a test. This research paper appears to be simple for non-typical reader. It is because the specialized terminologies were fundamentally characterized. Alternately, information was not encumbered for non-specialized readers. As a result, it may lead to uncertainty. When it is all said and done, the overall quality of this research project is adequate in light of the effect tended to the research objective and information given was clear. Nonetheless, some specific factors have to be enhanced, for instance, the definition of specific terminology should be explained. Related to the valid or reliable issue in the research paper, an error has been identified. Data collection was not completed due to the missing data. Therefore, the trend and area has not been significantly recognized. Regardless of the lost data, the result that has been formed in this article was original and meaningfully defined. In this journal, the author has provided stimulate need discussion. It is stated that, this research paper is another version of an earlier studies submitted to the International Journal of Economics and Management. Overall, the research paper is decently organized. The subheading for each section was stated. Besides, tables were attached to the note and properly labeled despite the inappropriate arrangement of the tables. Some of the relevant tables should have been presented along with the context. Despite the informative article, the length of this paper is appropriate. On the other hand, the conclusion section ought to be drawn out in order to improve audiences’ understanding. The author’s style and language were attractive while the presentation of this research paper was very rational because it is based on the result. Concurrently, the author has shown acknowledgment and respect toward the other researchers’ work whereby proper citation has been represented. The research is timely and worthwhile because it demonstrated the labor reduction. It showed how labor growth rate and productivity of each sector related to GDP growth of the country. Likewise, it gave a ground for policymakers to emphasize on minimum wages as it will reduce the dependency on foreign worker.


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