Determinants of labour productivity in fish processing companies: the case of Mwanza

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University of Dar es Salaam
This study analyses the determinants of labour productivity in fish processing companies of Tanzania case study of Mwanza. The study of labour productivity is necessitated by the fact that labour productivity is very important in the growth of the fish processing companies as well as the overall economy. In this study it has been observed that labour productivity shows fluctuating and declining trends in Tanzania fish processing companies. The study uses regression models which are estimated using the random effect models. The study uses panel data. Five hypotheses were tested, based on the relationship between labour productivity and its determinants which are capital intensity, size of the firm, worker’s education level, level of wage and age of a machine. The regression results show that only three variables are significant in explain labour productivity in fish processing firms, that is labour productivity in the surveyed fish processing companies is positively related to capital intensity, but negatively related with the size of the firm and age of a machine used in processing. Based on the theoretical analysis and empirical findings a number of conclusions and policy implications are drawn. These include (i) more emphasis should be on increasing number of machines (taking cost into account) in the companies, (ii) The problem of declining labour productivity can also be solved by improving the maintenance and replacement of old machines, (iii) increase in labour productivity ca be achieved by making sure that the expansion of firm size should go with the increase of capital intensity.
Fishery processing industries, Labor productivity, Mwanza region, Tanzania
Abdallah, M. (2013) Determinants of labour productivity in fish processing companies: the case of Mwanza, Master dissertation, University of Dar es Salaam. Dar es Salaam.