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Abstract

The paper titled investigates the critical role of the manufacturing sector in achieving industrial development through the lens of productivity indicators. Recognizing that manufacturing serves as a primary engine for economic growth, the study focuses on labor and capital productivity as essential benchmarks for evaluating economic performance and industrial health. The research explores the strategic link between labor productivity, employment rates, and capital accumulation, noting that improvements in productivity—whether through physical capital investment or "residual factors" like training and technical skill—can significantly influence labor demand. Conversely, the authors argue that slow productivity growth can lead to imbalances, inflationary pressures, and fiscal strain, ultimately threatening sustainable industrial growth. By analyzing data from Iraq and selected Arab nations during the 1990s, the paper examines how fluctuations in production elements affect sectoral equilibrium and the overall competitive landscape. The findings emphasize that maintaining a balance between marginal productivity and cost is vital for ensuring that the manufacturing sector effectively contributes to national diversification and technological advancement, providing a roadmap for policy interventions aimed at stabilizing economic growth in the region.

DOI

10.33095/jeas.v16i57.1443

Subject Area

Economics

First Page

119

Last Page

133

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