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Assessment of industrial performance and the relationship between skill, technology and input-output indicators in Sudan

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  • Nour, Samia

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    (UNU-MERIT, Maastricht University, and Khartoum University)

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    Abstract

    This paper examines the industrial performance indicators and the relationships between skill indicators; between skill, upskilling, technology and input-output indicators in Sudan. Our findings are consistent with the stylized facts in the new growth literature, concerning the correlation between skill indicators: education, experience and wages and also concerning the positive complementary relationships between technology, skill and upskilling. Different from the Sudanese literature, a novel element in our analysis is that we use a new primary data from the firm survey (2010) and we provide a new contribution and fill the gap in the Sudanese literature by examining the industrial performance indicators defined by three different sets of economic and productivity indicators, activity indicators and profitability indicators in Sudan. One advantage and interesting element in our analysis in this paper is that we confirm three hypotheses on the relationships between skill indicators; between skill, upskilling, technology and input-output indicators and industrial performance indicators using new primary data from the firm survey (2010) in Sudan. We verify our first hypothesis that irrespective of the observed differences across the industrial firms, the low skill levels - due to high share of unskilled workers - lead to skills mismatch and most probably contribute to decline of labour productivity and industrial performance indicators. We confirm our second hypothesis that an increase in skill levels and firm size lead to improved relationships between actual and required education and experience; between actual education, experience and wages; and between skill, upskilling and technology (ICT) and also improved industrial performance indicators. We also support our third hypothesis concerning the inconclusive relationships between new technology (the use of ICT) and input-output indicators at the micro/firm level. Finally, we provide a new contribution to the Sudanese literature, since we explain that the performance of the industrial firms is most probably immensely undermined by the shortage of skilled workers and also by the lack of entrepreneur perspective. We recommend further efforts to be made to improve adequate availability of skilled workers and commitment to entrepreneur perspective for improvement of labour productivity, industrial performance and therefore, economic growth and development in Sudan.

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    File URL: http://www.merit.unu.edu/publications/wppdf/2011/wp2011-030.pdf
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    Bibliographic Info

    Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 030.

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    Date of creation: 2011
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    Handle: RePEc:unm:unumer:2011030

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    Related research

    Keywords: Industrial performance; skill; technology; input-output; firm size; industry; Sudan;

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    1. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 1999. "Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence," NBER Working Papers 7136, National Bureau of Economic Research, Inc.
    2. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
    3. Braga, Helson & Willmore, Larry, 1991. "Technological Imports and Technological Effort: An Analysis of Their Determinants in Brazilian Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 39(4), pages 421-32, June.
    4. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    5. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
    6. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
    7. Acemoglu, Daron, 1997. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," CEPR Discussion Papers 1707, C.E.P.R. Discussion Papers.
    8. Joan Muysken & Samia Nour, 2006. "Deficiencies in education and poor prospects for economic growth in the Gulf countries: The case of the UAE," Journal of Development Studies, Taylor & Francis Journals, vol. 42(6), pages 957-980.
    9. David Autor & Lawrence Katz & Alan Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," Working Papers 756, Princeton University, Department of Economics, Industrial Relations Section..
    10. Muysken,Joan & Hoppe,Mombert & Rieder,Hannah, 2002. "The Impact of education and mismatch on wages: Germany, 1984-2000," Research Memorandum 041, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    11. repec:fth:coluec:455 is not listed on IDEAS
    12. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
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