Labour productivity growth for economic development

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Yaser Muueth A. Alkahtani

Abstract

The object of the case-study focuses on the RLP (real labour productivity) per hour worked in EU-27 for the
period of 2000-2010. Generally the real labour productivity affects the changing of the economic structure
relevant to market conditions. The real labour productivity growth per hour worked can provide the marginal
competitiveness either for any economy or for any firm, or transnational corporation.
The study analyses the correlations between the real labour productivity conditions and GDP or general
growth of economies based on the statistical analysing methods from point of view of macro economic level.
The study makes analyses among member states in EU-27 in field of comparing the real labour productivity
growth per hour worked based on using statistical data coming from IMF (International Monetary Found)
and Eurostat.
In case of Germany it can be seen that the highest developed economy could also realise less GDP growth in
spite of higher growth of RLP, for example 2% of RLP growth, 0.8% GDP growth in 1996, 2.3% of RLP
growth, 1.7% GDP growth in 1997, 2.5% of RLP growth, 1.5% GDP growth in 2001, 0.9% of RLP growth,
-0,4% GDP growth in 2003. The reason of this contradiction was resulted by decreasing trend and fall of US
economy. Even less RLP growth rate can result considerable competitiveness on the world market for highly
developed member states of EU, which leads to increase large significant export value for member states.
The export oriented strategy of companies is very useful to increase the price incomes also by through of
export increase to create higher level of real labour productivity growth.
The world economic crisis affected the economic development of the highest developed economies of EU-27
and by through of these strongest EU member states also affected other less developed member states of EU.
The EU-27 could not avoid of the world economic crisis, because this was started by US, as the first foreign
economic partner of EU-27. The RLP growth can not affect automatically on the real GDP growth rate
volume, because influences of RLP are determined by the foreign economic contacts and foreign trade of the
EU-27, which can consequently realise results of the RLP growth for GDP growth. The spirit of the RLP
growth is the development of innovation.

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How to Cite
Alkahtani, Yaser Muueth A. 2014. “Labour Productivity Growth for Economic Development”. Review on Agriculture and Rural Development 3 (1):369-74. https://ojs.bibl.u-szeged.hu/index.php/rard/article/view/13450.
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