Labor-Use Efficiency in Saudi Manufacturing Sectors

Ali Saggay () and Asma Raies
Additional contact information
Ali Saggay: College of Islamic Economics and Finance, Umm Al-Qura University Saudia Arabia

Journal of Reviews on Global Economics, 2018, vol. 7, 174-185

Abstract: This paper seeks to examine the process of adjustment in labor and to measure labor-use efficiency in Saudi manufacturing sectors. The theoretical framework is based on a dynamic flexible adjustment model applied to a panel of seven Saudi industries observed from 2007 to 2015. It investigates the process of adjustment in labor Saudization level toward a desired level. The adjustment process is both industrial and time-specific, and is expressed in terms of factors affecting the speed of adjustment. The empirical results show that, in the long run, labor Saudization responds greatly to gross domestic product, followed by unit Saudi wage and least by non-Saudi labor. In addition, labor over-use in Saudi manufacturing sectors is reduced after application of Nitaqat program. JEL Classification Numbers: C33; E31; F14; L60.

Keywords: Labor Saudization; Labor-use efficiency; Panel data; Saudi; Speed of adjustment; Technical change. (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://lifescienceglobal.com/independent-journals ... anufacturing-sectors

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lif:jrgelg:v:7:y:2018:p:174-185

Access Statistics for this article

Journal of Reviews on Global Economics is currently edited by Michael McAleer and Chia-Lin Chang

More articles in Journal of Reviews on Global Economics from Lifescience Global
Bibliographic data for series maintained by Faisal Ameer Khan ( this e-mail address is bad, please contact ).