Labour productivity in Tanzania textile industry trends and determinants

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University of Dar es Salaam
This study analyses the determinants and trends of labour productivity performance in Tanzania’s textile industry for the period 1970-1982 using two theories: the theory of production in the farm of constant-elasticity-of-substitution (CES) production function and property rights theory. In order to see the development of theories as well as the empirical studies on labour productivity various literature were reviewed. The study used regression models which were estimated using ordinary least squares (OIS) technique. The study used across-section, time series as well as pooled cross-section and time series data. It is worth studying labour productivity become of its importance in the growth of the textile industry as well as the overall economy. In this study it has been observed that labour productivity showed fluctuating and falling trend at both sectorial and plant levels. Four hypotheses were tested. The hypotheses were based on the relationship between labour productivity and its determinants which are: capital intensity, scale economies and size of the factory, real wages and ownership. The hypotheses state that labour productivity is directly related to its determinants just mentioned above. These hypotheses are confirmed by the regression results. Based on the theoretical analysis and empirical findings, a number of conclusions and policy implications were drawn, one of them being that the government and other employers should provide the workers with the necessary equipment and facilities which will eventually enable them to use their labour more productively, contribute more to output and thus get more regards in terms of wages. The employers should also try hard to reduce costs of production and increase efficiency in labour utilization through such measures as increasing the size of the factories and scale of production as well as improving the incentive schemes to the management. If it is difficult (or impossible) to improve labour productivity and the incentives to the management in the public firms, they should then be given or sold to private entrepreneurs.
Available in print form, EAF collection, Dr. Wilbert Chagula Library, class mark ( THS EAF HD9869.T3N9 )
Textile industry, Labour productivity, Industries, Tanzania
Nyoni, T.S ( 1986 ) Labour productivity in Tanzania textile industry trends and determinants, Masters dissertation, University of Dar es Salaam, Dar es Salaam.