IDEAS home Printed from https://ideas.repec.org/a/bjz/ajisjr/1942.html

Manufacturing Output and Labour Productivity: Evidence from ECOWAS

Author

Listed:
  • Adeyemi A. Ogundipe
  • Favour O. Olarewaju

Abstract

The manufacturing sector is one growth enhancing, yet grossly neglected by many resource rich economies in Africa. It is adjudged critical to Africa economies due to its capacity to generate growth, accumulate wealth and tighten the inequality gap. The sector has been growing at a relatively slow rate, particularly due to the occurrence of four extreme inter-connected external shocks: fall in commodity (particularly oil) prices, global economic and financial crisis, and rise in energy and food prices which have worsened regional output and productivity levels. More importantly, the human capital component seems to be one major hindrance. To this effect, human capital channel is examined in this present re-examination. A static panel regression analysis was used to examine the effect of labour (controlled for technology) on manufacturing sector performance in ECOWAS region from 1990 to 2019. The study found that on the average, when controlled for technology, labour productivity significantly influence manufacturing sector in ECOWAS. Specifically, the availability of secure internet servers and individuals’ internet usage were more important and positively stimulate the influence of labour productivity on manufacturing output in the region.

Suggested Citation

  • Adeyemi A. Ogundipe & Favour O. Olarewaju, 2020. "Manufacturing Output and Labour Productivity: Evidence from ECOWAS," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 9, September.
    • Handle: RePEc:bjz:ajisjr:1942
    as

    Download full text from publisher

    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/12203
    Download Restriction: no
    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/12203/11799
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nathan Nunn, 2007. "Relationship-Specificity, Incomplete Contracts, and the Pattern of Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 569-600.
    2. Stephen Oluwatobi & Isaiah Olurinola & Philip Alege & Adeyemi Ogundipe, 2020. "Knowledge-driven economic growth: the case of Sub-Saharan Africa," Contemporary Social Science, Taylor & Francis Journals, vol. 15(1), pages 62-81, January.
    3. Daniel MEYER & Richard McCAMEL, 2017. "A Time Series Analysis of the Relationship between Manufacturing Economic Growth and Employment in South Africa," Journal of Advanced Research in Law and Economics, ASERS Publishing, vol. 8(4(26)), pages 1206-1218.
    4. Ewout Frankema, 2015. "Labour-Intensive Industrialization in Global History: A Review Essay," Economic History of Developing Regions, Taylor & Francis Journals, vol. 30(1), pages 44-67, June.
    5. Çağatay Bircan & Tilman Brück & Marc Vothknecht, 2017. "Violent conflict and inequality," Oxford Development Studies, Taylor & Francis Journals, vol. 45(2), pages 125-144, April.
    6. Welch, F, 1970. "Education in Production," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 35-59, Jan.-Feb..
    7. Onakoya Adegbemi Babatunde, 2018. "Macroeconomic Dynamics and the Manufacturing Output in Nigeria," Mediterranean Journal of Social Sciences, Sciendo, vol. 9(2), pages 43-54, March.
    8. Daron Acemoglu, 2003. "Patterns of Skill Premia," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 199-230.
    9. Chete, L. N. & Adeoti, J. O. & Adeyinka, F. M. & Ogundele, O., 2014. "Industrial development and growth in Nigeria: Lessons and challenges," WIDER Working Paper Series 019, World Institute for Development Economic Research (UNU-WIDER).
    10. Antonio Ciccone & Elias Papaioannou, 2009. "Human Capital, the Structure of Production, and Growth," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 66-82, February.
    11. Francesco Caselli & Wilbur John Coleman II, 2006. "The World Technology Frontier," American Economic Review, American Economic Association, vol. 96(3), pages 499-522, June.
    12. Cantore, Nicola & Clara, Michele & Lavopa, Alejandro & Soare, Camelia, 2017. "Manufacturing as an engine of growth: Which is the best fuel?," Structural Change and Economic Dynamics, Elsevier, vol. 42(C), pages 56-66.
    13. John C. Anyanwu, 2017. "Manufacturing Value Added Development in North Africa: Analysis of Key Drivers," Asian Development Policy Review, Asian Economic and Social Society, vol. 5(4), pages 281-298.
    14. repec:srs:journl:jarle:v:8:y:2017:i:4(26):p:1206-1218 is not listed on IDEAS
    15. Andrei A. Levchenko, 2007. "Institutional Quality and International Trade," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(3), pages 791-819.
    16. Louis N. Chete & John Olatunji Adeoti & Foluso M. Adeyinka & Olorunfemi O. Ogundele, 2014. "Industrial Development and Growth in Nigeria: Lessons and Challenges," WIDER Working Paper Series wp-2014-019, World Institute for Development Economic Research (UNU-WIDER).
    17. Bartel, Ann P & Lichtenberg, Frank R, 1987. "The Comparative Advantage of Educated Workers in Implementing New Technology," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 1-11, February.
    18. Benhabib, Jess & Spiegel, Mark M., 2005. "Human Capital and Technology Diffusion," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 13, pages 935-966, Elsevier.
    19. Gaaitzen De Vries, 2010. "Small Retailers in Brazil: Are Formal Firms Really More Productive?," Journal of Development Studies, Taylor & Francis Journals, vol. 46(8), pages 1345-1366.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhamadu Awal Kindzeka Wirajing & Tii N. Nchofoung & Roger Tsafack Nanfosso, 2024. "Inclusive education and labour productivity: The case of Sub‐Saharan African countries," South African Journal of Economics, Economic Society of South Africa, vol. 92(4), pages 498-523, December.
    2. Benjamin Musiita & Leward Jeke, 2023. "Factor Inputs and the Growth of the Manufacturing Sector among the East African Community Member States: Testing the Efficacy of the Extended Neoclassical Growth Hypothesis," Journal of Economics and Behavioral Studies, AMH International, vol. 15(4), pages 1-12.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xun Wang & Jingwen Yu, 2023. "Accumulating human capital: Corporate innovation and firm value," International Review of Finance, International Review of Finance Ltd., vol. 23(4), pages 750-776, December.
    2. Pablo-Romero, M. del P. & Gómez-Calero, M. de la P., 2013. "A translog production function for the Spanish provinces: Impact of the human and physical capital in economic growth," Economic Modelling, Elsevier, vol. 32(C), pages 77-87.
    3. Marcella D'Uva & Rita De Siano, 2007. "Human capital and "club convergence" in Italian regions," Economics Bulletin, AccessEcon, vol. 18(1), pages 1-7.
    4. Gideon Ndubuisi, 2024. "Patent Enforcement and Quality Upgrading of Exported Products," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 13979-14011, September.
    5. Harald Fadinger & Pablo Fleiss, 2011. "Trade and Sectoral Productivity," Economic Journal, Royal Economic Society, vol. 121(555), pages 958-989, September.
    6. Cingano, Federico & Pinotti, Paolo, 2016. "Trust, firm organization, and the pattern of comparative advantage," Journal of International Economics, Elsevier, vol. 100(C), pages 1-13.
    7. repec:bge:wpaper:504 is not listed on IDEAS
    8. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
    9. Rattsø, Jørn & Stokke, Hildegunn, 2009. "Wage inequality, comparative advantage and skill biased technical change in South Africa," Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 34, Verein für Socialpolitik, Research Committee Development Economics.
    10. Erik Hornung, 2012. "Human Capital, Technology Diffusion, and Economic Growth - Evidence from Prussian Census Data," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 46, April.
    11. Ciccone, Antonio & Papaioannou, Elias, 2010. "Estimating Cross-Industry Cross-Country Models Using Benchmark Industry Characteristics," CEPR Discussion Papers 8056, Centre for Economic Policy Research.
    12. Andreas Irmen, 2008. "Cross-Country Income Differences and Technology Diffusion in a Competitive World," CESifo Working Paper Series 2504, CESifo.
    13. Antonio Ciccone & Elias Papaioannou, 2023. "Estimating Cross-Industry Cross-Country Interaction Models Using Benchmark Industry Characteristics," The Economic Journal, Royal Economic Society, vol. 133(649), pages 130-158.
    14. Lin, Pei-Chien & Huang, Ho-Chuan (River), 2012. "Banking industry volatility and growth," Journal of Macroeconomics, Elsevier, vol. 34(4), pages 1007-1019.
    15. Bhattacharya, Sourav & Chakraborty, Pavel & Chatterjee, Chirantan, 2022. "Intellectual property regimes and wage inequality," Journal of Development Economics, Elsevier, vol. 154(C).
    16. Ndubuisi, Gideon, 2020. "Fettered cross-border capital flows, external finance dependence, and international trade," International Economics, Elsevier, vol. 164(C), pages 206-216.
    17. Avner Ben-Ner & Ainhoa Urtasun, 2013. "Computerization and Skill Bifurcation: The Role of Task Complexity in Creating Skill Gains and Losses," ILR Review, Cornell University, ILR School, vol. 66(1), pages 225-267, January.
    18. Tan, Man & Yang, Dengyu & Yang, Qijing, 2023. "Institutional quality, asset specificity, and foreign direct investment," Journal of International Money and Finance, Elsevier, vol. 134(C).
    19. Li, Junqing & Yang, Zhiyuan & Liu, Kaifeng, 2024. "Research on contracting institutions and convergence," China Economic Review, Elsevier, vol. 84(C).
    20. Florent Silve & Alexander Plekhanov, 2018. "Institutions, innovation and growth : Evidence from industry data," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 26(3), pages 335-362, July.
    21. Jørn Rattsø & Hildegunn E. Stokke, 2011. "Accumulation of education and regional income growth: Limited human capital effects in Norway," Working Paper Series 11211, Department of Economics, Norwegian University of Science and Technology.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjz:ajisjr:1942. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Richtmann Publishing Ltd (email available below). General contact details of provider: https://www.richtmann.org/journal/index.php/ajis .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.