This thesis examines the growth of the industrial sector of the U.A.R. from 1956-67 in the light of surplus labour theory. The first part of the thesis is concerned with the general characteristics of surplus labour developing economies. One solution to the problems of development, the surplus labour theory is advocated. That is, the industrial sector of the surplus labour economy is expanded,􀀮 absorb􀀊ng.in the process: surplus la pour from the over populated agricultural sector, the resulting agricultural surplus being used for industrial development. This solution taken up in detail is· analyzed mathematically using a contour map of sets of isoquants. The periodic increase in the labor force of the industrial sector are separated into two components: radial elements due to increments in capital stock and horizontal elements due to technological change over time. The components are measured both diagrammatically and analytically. One of the criteria for the successful growth of the industrial sector is stated as the 1critical minimum effort' criterion. That is, the rate of growth of the industrial labour force should be greater than· the rate of growth of the population. The rate of growth of the industrial labour force is composed of the two components previously analyzed 'The horizontal element, due to technological innovation is measured and described in terms of labour using (capital saving) or labour saving (capital using) techniques. The second part of the thesis examines the industrial sector of the U.A.R. Series for population, capital stock in industry and the industrial labour force are derived for the years 1956-67. The data are used to compute linear, quadratic & logarithmic regressions for capital stock as a function of the labour force, and hence the "turning point" of the economy, i.e. that point at which the econo1ny turns from a capital shallowing to a capital deepening process. The raw data are also used to compute the rates of growth of population0 labour force9 and capital/labour ratios and therefore establish the periods for which the "critical minimum effort" criterion is observed. It is seen that this criterion is violated from 1964 onwards,. The logarithmic regression function for capital stock is then used to compute the radial and horizontal components of the growth of the industrial labour force for yearly periods. The horizontal components exhibit a marked used of very labour saving techniques from 1957/58 onwards. In the conclusion to the thesis the magnitude of the surplus labour force in the agricultural sector and the growth of real wages in the industrial sector of the U.A.R. are examined in relation to the results of the previous chapters. The justification for the choice of techniques, shown to be capital intensive, is discussed in view of the main targets of development There is a mathematical appendix of the calculations used for the tables and regression analysis employed in the thesis.


Economics Department

Degree Name

MA in Economics

Date of Award


Online Submission Date


Document Type



119 leaves

Library of Congress Subject Heading 1

Labor market

Library of Congress Subject Heading 2

Industrial management


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Call Number

Thesis 1970/119



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Economics Commons