Sources of Productivity Growth in Uganda : The Role of Interindustry and Intra-industry Misallocation in the 2000s
Uganda's growth in gross domestic product of the 2000s was accompanied by high growth rates of labor productivity across industries producing tradable goods and services. This came about primarily as a result of investment in equipment and oth...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/346311481118203023/Sources-of-productivity-growth-in-Uganda-the-role-of-interindustry-and-intra-industry-misallocation-in-the-2000s http://hdl.handle.net/10986/25808 |
| Summary: | Uganda's growth in gross domestic
product of the 2000s was accompanied by high growth rates of
labor productivity across industries producing tradable
goods and services. This came about primarily as a result of
investment in equipment and other fixed assets, but also
entailed substantial gains in total factor productivity
Based on data from two waves of the Uganda Business
Indicators survey this paper estimates that economy wide
aggregate labor productivity and aggregate TFP grew at
average annual rates of 13 t and 3 percent, respectively
between survey years 2002 and 2009. Part of the growth in
productivity on each measure reflected gains from technical
progress made at the establishment level and within narrowly
defined industries. But it was also in part the outcome of
reallocation of labor and capital within as well as across
industries. In particular, the paper estimates that about
one-fifth of the aggregate growth in labor productivity
between the two years reflected the shifting of labor toward
industries and sectors where it was more productive on
average and at the margin. The rest of the observed growth
in labor productivity reflected gains made within narrowly
defined industries. But almost in every case 55 to 90
percent of the observed "within industry" growth
in labor productivity represented allocative efficiency
gains from the correction of intra-industry inter-firm
misallocation of labor. The balance of the observed
within-industry growth in labor productivity represented
establishment-level gains in technical efficiency. |
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