PRODUCTIVITY GROWTH AND FACTORS AFFECTING LABOR PRODUCTIVITY IN EGYPTAIN ECONOMIC SECTORS

Gamal M. Nawara, Mohamed A. El-baz, Ahmed M. A. Attia

Abstract


This paper analyzes sources of productivity growth in Egypt for the past 25 years. Single productivity indexes, such as Labor Productivity (LP), MultiFactor Productivity (MFP) and Incremental Capital Output Ratio (ICOR) were used to examine the performance of labor and capital. The paper approaches the task of forecasting 20 years into the future. Sensitivity analysis helps to decide which sector more effective to maximize the total Gross Domestic Product (GDP). By improving productivity, we can increase the price competitiveness of Egyptian products and create the necessary conditions for increasing our standard of living. Although productivity improvement is important, it does not always succeed. A firm may have a real intention to improve productivity, but there are many things which restrain their ability to achieve this aim. The factors which make the efforts to improve productivity ineffective, or even prevent improvement operations can be called obstacles to productivity improvement. In this paper an attempt is made to analyze the factors negatively affect labor productivity, and rank these according to their relative importance

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