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Zambian Manufacturing Performance in Comparative Perspective

Author

Listed:
  • Yamfwa, F.

    (ECIS, Eindhoven University of Technology)

  • Szirmai, A.S.

    (ECIS, Eindhoven University of Technology)

  • Chibwe Lamba

    (Central Statistics Office, Lusaka, Zambia)

Abstract

This paper presents an analysis of Zambian manufacturing performance since 1964. It presents new estimates of labour productivity growth and total factor productivity growth. After a period of growth and labour productivity improvement till 1974, Zambian manufacturing suffered from increasing inefficiencies in an import substituting and interventionist environment. Growth of output slowed down, labour productivity and investment declined, though TFP showed some fluctuation. In the period of liberalisation between 1991-95, output shrank dramatically, TFP collapsed and labour productivity continued to decline. After 1995 indicators of performance point to a modest recovery. Following an industry-of-origin approach to international comparisons, the Zambian estimates are placed in comparative perspective in a binary comparison with the USA. In 1990, labour productivity in Zambia stood at 5.9 percent of the US level, while relative total factor productivity stood at 16.7 percent. Over time comparative labour productivity has been declining, indicating an increasing technology gap relative to the world frontier. By 1998, comparative labour productivity stood at 3.2 percent of the US level.
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Suggested Citation

  • Yamfwa, F. & Szirmai, A.S. & Chibwe Lamba, 2002. "Zambian Manufacturing Performance in Comparative Perspective," Working Papers 02.21, Eindhoven Center for Innovation Studies.
    • Handle: RePEc:ein:tuecis:0221
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    3. Thurlow, James & Wobst, Peter, 2004. "The road to pro-poor growth in Zambia: past lessons and future challenges," DSGD discussion papers 16, International Food Policy Research Institute (IFPRI).
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    5. Szirmai, Adam, 2009. "Industrialisation as an engine of growth in developing countries," MERIT Working Papers 2009-010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
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    7. Richard Bluhm & Denis de Crombrugghe & Adam Szirmai, 0. "Do Weak Institutions Prolong Crises? On the Identification, Characteristics, and Duration of Declines during Economic Slumps," The World Bank Economic Review, World Bank, vol. 34(3), pages 810-832.
    8. Robert J. Hill, 2004. "Constructing Price Indexes across Space and Time: The Case of the European Union," American Economic Review, American Economic Association, vol. 94(5), pages 1379-1410, December.
    9. Szirmai, Adam, 2012. "Proximate, intermediate and ultimate causality: Theories and experiences of growth and development," MERIT Working Papers 2012-032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Michiel VAN Dijk, 2003. "South African Manufacturing Performance In International Perspective 1970–1999," South African Journal of Economics, Economic Society of South Africa, vol. 71(1), pages 119-142, March.

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