A Cobb-Douglas estimation of labour productivity in the South African motor vehicle manufacturing industry

Abstract

The objective of the paper is to demonstrate the use of an unique extention of the Cobb-Douglas efficiency criteria for the measurement and quantification of labour productivity. The South African motor vehicle manufacturing industry is used as a case study. This paper adopts the hypothesis that one of the more important factors contributing to the spiralling unit cost in the motor vehicle industry is the sluggish level of labour productivity. The results of the measurements are indeed interesting and it substantiates the hypothesis that the low level of labour productivity does contribute significantly to the increasing unit cost of the industry. Opsomming Die oogmerk van die artikel is om 'n unieke uitbreiding van die Cobb-Douglas doelmatigheidskriteria in die meting en kwantifisering van arbeidsproduktiwiteit bekend te stel. Die Suid-Afrikaanse motorindustrie is as 'n gevalle studie gebruik. Die artikel stel die hipotese dat een van die belangrike bydraende faktore tot die toenemende eenheidskoste in die Industrie die oenskynlike gebrek aan arbeidsproduktiwiteit is. Die resultate van die metings is interessant en staaf die hipotese dat die kontinue lae vlak van arbeidsproduktiwiteit in die bedryf 'n sterk bydraende faktor tot stygende eenheidskoste en die oneffektiewe samestelling van die arbeid/kapitaal insetkombinasie is.

Keywords

• Cobb-douglas estimation
• labour productivity
• South African
• motor vehicle manufacturing industry