Sources of Heterogeneity in Labor Productivity and Total Factor Productivity in Egyptian Manufacturing - Economic Research Forum (ERF)

Sources of Heterogeneity in Labor Productivity and Total Factor Productivity in Egyptian Manufacturing

Abeer Elshennawy and Mohamed Bouaddi


Date:
December, 2018

NO.
1276

Length:
31 pages

Topic:
O3. Technological Change, Research and Development, Intellectual Property Rights
O4. Economic Growth and Aggregate Productivity
O1. Economic Development

Egypt Ranking in the World Competitiveness Report deteriorated between 2004 and 2017. Boosting competitiveness requires reforms on several important fronts, but raising labor productivity and TFP are perhaps the most pressing. This paper identifies the correlates of both labor productivity and TFP at the firm level in Egypt’s in manufacturing sector using Economic Census data for the year 2012/2013.We find significant heterogeniety in both Labor productivity and TFP between firms. By econometirically dicotomizing firms into low and high productivity regimes, we find that the correlates of productivity differ between these two sets of firms. By identifying the sources of heterogeneity between low and high productivity firms we show that there is considerable scope for the former to catch up with the lattter based on factors that are internal to the firm .However, the literature does not offer much insights as to how high productivity firms can increase their productivity further.

ملخص

تراجعت مصر في اﻟﺗﺻﻧﯾف اﻟﻌﺎﻟﻣﻲ ﻟﻟﺗﻧﺎﻓﺳﯾﺔ ﻓﻲ اﻟﻔﺗرة ﻣﺎ ﺑﯾن ﻋﺎﻣﻲ 2004 و 2017. إن ﺗﻌزﯾز اﻟﻘدرة اﻟﺗﻧﺎﻓﺳﯾﺔ تتطلب إﺟراء إﺻﻼﺣﺎت ﻋﻟﯽ ﻋدة ﺟﺑﮭﺎت ﻣﮭﻣﺔ ، وﻟﮐن رﻓﻊ إﻧﺗﺎﺟﯾﺔ اﻟﻌﻣﺎﻟﺔ وعوامل الإنتاج الكلى ھﻲ اﻷﮐﺛر إﻟﺣﺎﺣًﺎ. تحدد هذه الورقة العلاقة بين إنتاجية العمالة وعوامل الإنتاج الكلى على مستوى الشركة في قطاع الصناعات التحويلية في مصر. باستخدام بيانات التعداد الاقتصادي لعام 012/2013 ، نجد عدم تجانس كبير في إنتاجية العمالة وفى عوامل الإنتاج الكلى بين الشركات. ومن خلال الشركات تقسيم البيئة الاقتصادية إلى أنظمة الإنتاجية المنخفضة  أوأنظمة الإنتاجية العالية ، نجد أن الارتباط بين الإنتاجية يختلف بين هاتين المجموعتين من الشركات. من خلال تحديد مصادر عدم التجانس بين الشركات ذات الإنتاجية المنخفضة والعالية ، نبين أن هناك مجالًا كبيرًا للحاق بالشركات ذات الإنتاجية العالية استنادًا إلى عوامل داخلية  متعلقة بالشركة ذاتها. ومع ذلك ، لا تقدم الأدبيات الكثير من الأفكار حول كيف يمكن للشركات ذات الإنتاجية العالية زيادة إنتاجيتها بشكل أكبر

Authors

Abeer Elshennawy

Associate Professor at the American University in Cairo


Authors

Mohamed Bouaddi

Associate Professor in Economics at the American University in Cairo


Project

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