The shift from an input-driven strategy to a productivity-driven strategy during the OPP2 period was affected by the economic crisis in 1997. However, the OPP2 saw success in achieving its goals with strong fundamental despite this crisis and enabled the country to recover and grow at an annual average rate of 7 percent per annum from 1991 to 2000. The growth was based on input-driven, particularly from capital as the Total Factor Productivity (TFP) was 28.4 percent of
European Journal of Management Sciences and Economics Vol. 1, Issue 1, February 2013
Mary & Sam Research Academia, UK
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GDP growth, the contribution of labour was 25.9 percent and that of capital was 50.2 percent. During the 1996-1997 period,export grew by 7.3 percent per annum but subsequently slowed down to 0.5 percent in 1998 due to economic contraction but a higher export growth of 14.1 percent per annum was achieved during the 1999-2000 period largely due to the growth in world demand for electronic products and the recovery of the regional economies. And also, during the 1998-2000 period, the government adopted additional to increase productivity, which included the allocation of more resources for research and development(R&D), expansion of education and training and technology improvements.