Productivity in manufacturing industries in Kuwait

This paper examines productivity in manufacturing industries in Kuwait. In particular, labor productivity for each of the industry is estimated and a general reduced-form single equation model is estimated to explain changes in productivity over time. The explanatory factors taken into consideration are quality of labor, capital intensity, acquisition of technology, learning experience, and internal competition. The evidence shows that labor productivity in the industries is positively linked to quality of labor, learning experience, private ownership, and exposure to international markets. Capital intensity, acquisition of technology, and size of the industry are found to have no impact on productivity.