Labor Productivity and Economic Growth in Nigeria Case Study Oshogbo
CHAPTER ONE
OBJECTIVE OF THE STUDY
The objectives of the study are;
- To ascertain the relationship between labour productivity and economic growth in Nigeria
- To ascertain the relationship between human capital and economic growth
- To find out the level of economic growth in Nigeria
CHAPTER TWO
REVIEW OF RELATED LITERATURE
THEORETICAL REVIEW
Jorgenson (1991) points out that in the United States was observed an increase in labor and capital input between the years 1947 and 1985. While the increase in capital input is the most important source of output growth, the increase in labor input is the second source after capital. The increase in productivity is less important. From this point of view, it was emphasized that it should focus on the mobilization of the sources related to the capital and labor rather than the improvements in productivity. Baily et al. (1996) point out that average labour productivity declines during recessions and increases during booms. Baier et al. (2002) 145 found out that only 14% of the increase in output per each worker in whichever country is related to the increase in TFP. Nachega and Fontaine (2006) indicate that the decrease in the output per person in Nigeria between the years 1963 and 2003 is due to the negative growth in the TFP as well as to the negative growth per person in physical capital. Yıldırım et al. (2009) used OLS technique in their research on 111 countries. Their test results show a statistically significant relationship in negative direction between the temperature and labor productivity. It means that high temperatures in a country have a negative impact on labor productivity. Rudolf and Zurlinden (2010) observed that labor and capital inputs increased the economic growth at the rate of 1.28% in Switzerland between the years 1991 and 2005. However, the results of the growth related to labor and capital productivity were less than those obtained from previous studies. Jajri and Ismail (2010) revealed that capital stock and capital-labor ratio have an important role on labor productivity and economic growth in Malaysian economy according to the data concerning the period between the years 1981 and 2007. Although the effective labor has a positive impact on economic growth, its contribution to the economic growth is less than that of the physical capital. Su and Heshmati (2011) used the Least Square Dummies Variables (LSDV) method for China between the years 2000 and 2009 and they observed that labor productivity has an important impact on economic growth according to the results obtained from analysis. Alani (2012) emphasized that the decrease in economic growth in Uganda in the period 1972 to 2008 might have been due to the increase in productivity and, in turn, unemployment and decrease in capital stock might have been due to the increase in productivity. Tabari and Reza (2012) tested the possible effects of the education and technology in agriculture sector on labor productivity in Iran in the period of 1961-2007 by using ARDL method.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to labour productivity and economic growth in Nigeria
Sources of data collection
Data were collected from two main sources namely:
Primary source and Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain labour productivity and economic growth in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of labour productivity and economic growth in Nigeria
Summary
This study was on labour productivity and economic growth in Nigeria. Three objectives were raised which included: To ascertain the relationship between labour productivity and economic growth in Nigeria, to ascertain the relationship between human capital and economic growth, to find out the level of economic growth in Nigeria. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of Oshogbo local government of Lagos state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made directors, administrative staff, senior staff and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
The efficient use of economic resources is one of the important problems of the economy. As the resources are scarce in the economy, their efficient use is a necessity. There is a production level set for each country that can be attained if they use their resources with full and efficiency. The increase in the production level will be an expected result if the factors used in production full and efficiency or the productivity of these factors has been increased. From the production factor used, the productivity of capital, labor or raw material can be increased. The most frequently used partial efficiency in the economy is the labor productivity which, in turn, is ensured by the increase in knowledge and skills. Another factor that increases the efficiency of the workforce is the technological innovations developed through research and development activities. Work conditions and climate also influence the productivity of the workforce. Productivity is one of the most important factors contributing to the economic growth. It has effects on economic growth by means of reducing input costs and efficient use of the production factor. While the productivity triggers the economic development and growth in developing countries, it leads to sustainable economic growth in developed countries. It is a fact that the labor productivity of developed countries is higher than that of developing countries for the reason that these first ones have strong economic, education and health infrastructures and they are engaged in technological innovations.
Recommendation
Government should invest in the people since high economic performance is a function of the people working in the country. Government should ensure a conducive enabling environment to private sector initiative for greater investment and productivity
References
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