low income countries suffer from scarcity of capital but have an abundant labor force, such as some Africa countries. The use of such an abundant labor force may lead to industrial growth. China has a large workforce and manufacturing industries contribute about 35 per cent to country's gross domestic product. The country has also become one of the world's leading manufacturing bases and leading suppliers of products such as household electric appliances, garments, toys, shoes and light industrial products. Supply of perfectly skilled labor to any industry can boost the industry growth rate. In this way, underdeveloped countries can improve their industrial economy without heavy capital investment. Moreover, exportation of the products manufactured by labor intensive industries can strengthen the export base of any developing country. These exports help the economies in earning foreign exchange, which can be used for importing essential goods and services. Measurement There are multiple ways to measure labor intensity: Labor-capital ratio :the relationship between employment and capital stock. This ratio indicates the relative use of factors in an activity and the extent to which it is labor-intensive compared to capital-intensive. The ratio between employment and value added, which indicates the labor intensity of production. This measure indicates the extent to which an activity absorbs labor for each unit of value added. These two measures are different ways of measuring labor intensity, Neither is superior in itself, the choice of measure depends on the specific issue of interest. However there is a limitation of this two measures: they only measure direct labor intensity and they exclude the extent to which sectors are linked to another sector of the economy. For instance, a given sector may itself not be particularly labor-intensive, but it might utilize (as inputs) the output of other sectors that are highly labor-intensive. A solution could be to consider employment multipliers by sector. Employment multipliers essentially indicate what increase (decrease) in economy-wide jobs could be associated with a given increase (decrease) in final output of a sector. References Intensity