PRODUCTIVITY DYNAMICS IN LITHUANIAN MANUFACTURING INDUSTRY
Keywords:total factor productivity, labour productivity, manufacturing industry
AbstractThis paper analyses the existing measures of productivity in Lithuanian manufacturing industry. Total factor productivity and its continuous growth are viewed as significant parameter that determine the competitive advantage in manufacturing and depend on changes of significant factors as R&D intensity, international trade and foreign direct investment. Productivity measures indicate the interaction between produced commodities or services and used capital and labour resources. The most common measure is labour productivity, measures the value added per employee and equates the turnover with the costs of commodity. The empirical study provides an analysis of the shifting the labour productivity differentials in manufacturing industries of Lithuania. The paper aims to evaluate the dynamics of productivity of manufacturing industries in the context of economic integration. Economic policies under export growth strategy have been widely argued that export increasing helps to enhance the productivity of exporters.
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