ICT AND HUMAN CAPITAL INTENSITIES IMPACT ON ASEAN5 PRODUCTIVITY

This study assesses the impact of information and communications technology (ICT) and human capital intensities on productivity of ASEAN5 (Malaysia, Indonesia, Philippine, Singapore and Thailand). The factors identified as influencing the labour productivity of ASEAN-5 are the individual contributions of capital deepening (intensity), ICT intensity, human capital intensity and the simultaneous contribution of the quality of these factors. That is expressed as the total factor productivity (TFP) intensity. The results show that the productivity growth of ASEAN-5 is input-driven. The study also finds that the impact of ICT and human capital intensities appears to have been reasonable with little contribution of TFP intensity growth. The results also confirmed that capital intensity had strongly significant role in achieving reasonable labour productivity contribution that produced by these economies through using huge input to produce output.