Academic journal article Global Business and Management Research: An International Journal

Labor Productivity of Greek Manufacturing Industries

Academic journal article Global Business and Management Research: An International Journal

Labor Productivity of Greek Manufacturing Industries

Article excerpt


There is a variety of productivity measures. The choice between them relies on the purpose of productivity measurement and, in many cases, on the availability of data. Generally, productivity estimates can be classified as single factor productivity measures that relate a measure of output to a single measure of input or multifactor productivity measures that associate a measure of output to a bundle of inputs. Another difference, of particular relevance at the industry or firm level is between productivity estimates that relate some measure of gross output to one or several inputs and those which use a value-added concept to capture movements of output (Vrat, 2009).

Labor productivity is the amount of goods and services that a laborer produces in a given amount of time. It is one of several types of productivity that economists estimate. Labor productivity is a valuable measure since it relates to the single most important factor of production, is intuitively appealing and relatively easy to calculate. Furthermore, labor productivity is a vital determinant of living standards, measured as per capita income, and from this perspective is of important policy relevance. Labor productivity can be measured for a firm, a process or a country (OECD, 2001).

At first, this article will evaluate the meaning of Labor Productivity (LP). Different ways of measuring LP are discussed. The methodology adapted for the calculation of LP is highlighted. Labor productivity of 18 manufacturing sectors will be estimated across the period 1963-2006.

The eighteen industries that are studied are: (1) food and beverage industries; (2) tobacco manufactures; (3) textiles; (4) manufacture of footwear, other wearing apparel and made-up textile goods; (5) manufacture of wood and cork, except manufacture of furniture; (6) manufacture of paper and paper products; (7) printing and publishing industries; (8) manufacture of leather and leather and fur products, except footwear and other wearing apparel; (9) manufacture of rubber and plastic products; (10) manufacture of chemicals and chemical products; (11) manufacture of products of petroleum and coal; (12) manufacture of non-metallic mineral products, except products of petroleum and coal; (13) basic metal industries; (14) manufacture of metal products, except machinery and transport equipment; (15) manufacture of machinery, except electrical machinery; (16) manufacture of electrical machinery, apparatus, appliances and supplies; (17) manufacture of transport equipment; and (18) miscellaneous manufacturing industries that include the manufacture of furniture.

Labor productivity "relatives" will be calculated for all 18 industries. Regression analysis will take place for all 18 manufacturing sectors as well as total industry for the periods 1963-1973, 1974-1984, 1985-1995 and 1996-2006. The purpose is to evaluate the factors that have mainly influenced labor productivity.

The average annual growth of labor productivity will be analyzed over the periods 1963-1973, 1974-1984, 1985-1995, 1996-2006 and 1963-2006.

In addition, the forecast of labor productivity of all eighteen industries and total manufacturing is looked at for the years 2007-2011.

The purpose of the present study is threefold:

* First, the calculation of LP and "relatives" of eighteen Greek manufacturing sectors and total industry over the period 1963-2006.

* Second, the undertaking of regression analysis in order to evaluate the contributors to LP of eighteen Greek manufacturing industries as well as the total manufacturing sector over the periods 1963-1973, 1974-1984, 1985-1995 and 1996-2006.

* Thirdly, the estimation of forecast of the Greek LP of all manufacturing industries over the years 2007-2011.

The outline of this paper is as follows:

* Section 2 highlights the meaning and measurement of LP.

* Section 3 exhibits labor productivity of all manufacturing sectors across the period 1963-2006. …

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