The national income accounts provide a summary of all transactions in an economy. Seen from the income side, the production process creates incomes for the owners of the inputs used in production including labour and capital. Official data on the income accounts from the income approach are not available on an annual basis. The information is required in the computation of factor shares, that is, the share of labour and capital in income. This paper discusses the derivation of a consistent series for 1960-2004. The estimates show a decline of the labour share over time, while the capital share is increasing.

By: Shyamala Nagaraj & Kim-Leng Goh. Faculty of Economics & Administration. University of Malaya.