Manufacturing Output and Labour Productivity: A Comparative Study of Nigeria and South Africa

Abstract:

Increased productivity is necessary for improved manufacturing output, better living standards and sustained competitiveness of any country. Hence, to obtain maximum effect, there must be transition and structural change from traditional and modern economic sectors in addition to within-sector productivity. Given various similarities of Nigeria and South Africa, ranging from same British colonisation to similar labour structure, South Africa is known to be more advanced than Nigeria. Hence, this study aims to examine trends and patterns of both Nigerian and South African economies from 1986 to 2018. Thus, evidence was found that regardless of South Africa’s much higher labour productivity, the growth of its manufacturing sector, especially in relation to GDP seems to be declining. Meanwhile, Nigeria has low labour productivity and fluctuating manufacturing output, especially since the nation is yet to fully recover from the last recession in 2015.

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