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north consistently contribuiteci proportionately more in output than it absorbed in
labour inputs, which is more than can be said for the manufacturing sector in the
south (see Figures 4.5 and 4.6). With a manufacturing sector between a third and a
half the size of the sector in the south (in terms of the respective shares of the
workforce) the north looks (on the basis of "officiai" statistics) to have considerably
higher productivity. Manufacturing in the north is generally beset with many of the
same problems as the south, its politicai history has also provided some unique
ones: a small domestic market; a limited resource base; small-scale, artisan based
production systems with low productivity; high transport costs due to the politicai
situation and the low volume of trade; cheap imports from Turkey; and a difficulty
attracting and raising new investment.
Figure 4.6 Manufacturing employment & output as a % of total employment &
GDP in the south.
6%
4% +
0
Employment
1 I Contribution to GDP
Scure«: 1993 Sntiltrcal AbiH>«.p.l58. p.22S, Uùlorical Diu an the Eecmxny oiCypnl» 1960-1591, p.4ä
Hence revitalising industry was a much slower process in the north, but under the
stewardship of the "state*s" Cyprus Turkish Industriai Enterprises Holding Co.
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