The Impact of Labour Productivity on Economic Growth: The Case of Mauritius and South Africa

This study explores the impact of labour productivity on economic growth in Mauritius and South Africa. We establish that investments in physical capital have a positive effect on labour productivity and by implication on economic performance. Labour employment in industry is counterproductive, while the cumulative effect of new technologies on labour productivity is negligible in the three-year intervals. It is the initial stock and subsequent accumulation of human capital that stimulates faster output growth in both countries