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Figure 5.7 Employment in manufacturing and construction; rise, decline and
recovery, 1970-1982.
manufacturing
construction
Source: Rep. of Cyptus. 1994. "Historical Data on the Bconomy of Cyprus 1960-1991." Nicosia: Dept of Statistica & Research, pp. 182-83.
Using either market or factor prices (Figures 5.3 and 5.6), manufacturing seems to
have a more profound impact in the immediate post war period 1974-75, before the
construction industry's contribution to GDP has finished its post-war decline and
long before the multiplier and demand stimulus of new refugee housing has had any
impact. Using market prices (Figure 5.6), the impact of the manufacturing sector is
more pronounced in that year and continues to grow even faster in its contribution
to national income between 1975 and '76. The contrast between the role of
manufacturing and the role of the construction industry in the recovery of the
Cypriot economy, is even more startiing when employment figures are examined.
Employment in the manufacturing sector recovered earlier and continued to grow
after employment in the construction industry had peaked below its pre-(74)-war
level. Particularly significant for the recovery was that employment growth in
manufacturing after 1974 was stimulated by export growth, generating cruciai
foreign exchange which the domestic construction needed to fund imported inputs 40 .
40 "Worst hit [by the invasion] is the production of construction materials because about 11% of the
total capacity and production has fallen into Turkish hands. " Republic of Cyprus. Aprii 1975.
245