SOAS Research Online

Abstract

The subject of productivity is at the heart of all present day economic discussions. Its importance stems from the fact that it is a measure of the efficiency with which resources, i.e. factors of production, are converted into the commodities and services we need. All plans for economic growth are, in one way or another, "based on productivity considerations. Available resources in a country or in industry are first assessed, then the best possible paths for distribution of resources and types of production are pursued. Further, the solution of most economic problems lies in answering some productivity problems. Prices, costs and other economic aspects, such as distribution of economic gains, are influenced and determined by productivity, i.e. efficiency of factor inputs. Higher productivity of factor inputs would contribute to lower costs and this in turn may result in lower prices, or more profits, and so on. But in spite of the importance of the subject of productivity it was not until recent years that much consideration was given to this branch of economics. Furthermore, the fact that productivity is a quantitative measure means that studies are carried out in countries where statistical data are readily available, Consequently we find that the main developments in this field have been made in advanced countries. In under-developed countries the subject of productivity is still vastly unexplored. This is the case in Iraq v/here little has been done in this field. The present study is a first attempt in the field of productivity measurement in Iraq. Its aim is two-fold: first to use some productivity measurements to assess the productivity performance and also to serve as a model for more studies in this field. Measurements of productivity in Iraq will be done at all levels of the Iraqi economy: total economy by main sectors, manufacturing sector by main industrial groups and selected industrial firms. Emphasis, however, will be put on selected industrial firms in the cement, textile, brewing and cigarette industries. Finally, it is hoped that this study will serve the purposes set out, i.e. introduce the subject of productivity to the economic field in Iraq and fill in the gap in the statistical field, by providing data on various aspects of the economy.