Productivity measurement from a deficient data base: An empirical study of Kenya's manufacturing sector

The study measures productivity growth in Kenya's manufacturing sector. Given several deficiencies of the data typical for developing countries, it focuses on methods to overcome such weaknesses of the data. The computation of total factor productivity growth uses a modified version of neoclassical growth accounting à la Solow and Denison. Data uncertainties are diminished through sensitivity analysis and comparison with some international evidence. In a second approach, labor productivity growth is broken down into two components: structural change in favor of more productive industries, and productivity increase at industry level.The refereeing process of this paper was handled through Edward Kokkelenberg. An earlier version of this paper was presented at the 1989 meetings of the European Economic Association in Augsburg. The author acknowledges helpful comments from two anonymous referees of this Journal. The usual waiver applies.