Unit labour costs in manufacturing in Fiji and Papua New Guinea

Abstract

Unit labour costs in manufacturing in Papua New Guinea are compared with estimates for Indonesia, Malaysia and the Philippines - countries which are likely competitors for investment funds. Assessed in these terms, manufacturing activities in Fiji and Papua New Guinea are uncompetitive for export-based investment. Of most concern is the relatively poor labour productivity performance which is most likely associated with their inward-looking industrial policies. Hopefully, the more outward-oriented investment, trade and financial policies being adopted will lead to improved productivity and ultimately wage growth. Show more