A Micro Economic Analysis Of Productivity In The Manufacturing Industry Of North West

Abstract

This article studies the productivity in the manufacturing industry of the North West Province. Estimates of the Cobb-Douglas production function for the province’s manufacturing industry are utilised and then applied to the industry’s cost structure to determine whether the factors of production are optimally allocated. It was found that the levels of labour productivity are continuously declining. Higher gains in output could have been achieved if expenditure on production factors were optimally allocated.What the optimal allocations should have been are then determined in monetary terms.

Opsomming
Die produktiwiteit van die vervaardigingsnywerheid in die Noordwes Provinsie word in hierdie artikel bestudeer.’n Cobb-Douglas produksiefunksieword vir die vervaardingsnywerheid van die provinsie geskat. Die resultate word dan op die nywerheid se kostestrukture toegepas om te bepaal of die produksiefaktore optimal geallokeer is. Daar is gevind dat daar ’n kontinue afname in arbeidsproduktiwiteit bestaan.Hoe«r winste in uitset ismoontlik indien besteding aan produksiefaktore optimaal toegewysword.Wat die optimale allokasiemoesweesword dan bepaal.