ASEAN's TFP Growth, Economic Weight, and Offsetting Contributions: Strong Gains, Modest Regional Productivity

Productivity Research Notes (PRN Series), No. 2622 This note relates national TFP growth to economic weight and income levels across ASEAN's ten member economies over 2010–2024. Vietnam and Malaysia combined TFP growth of about 1% per year with sufficient economic weight to become the leading positive contributors. Indonesia, accounting for well over one-third of regional output, turned slightly negative TFP growth into a substantial drag. Country-origin contributions sum to 0.30 percentage points per year, compared with ASEAN TFP growth of 0.41%, as strong gains were partly offset by weakness elsewhere. Income alone did not determine performance: Vietnam and Indonesia, at similar income levels, followed sharply divergent paths.