The important role of productivity in Australia's long-run competitive position in LNG

2013 ◽  
Vol 53 (2) ◽  
pp. 451
Author(s):  
Brad McBean ◽  
Matt Guthridge
Keyword(s):  
Labour Productivity ◽  
Option Value ◽  
Medium Term ◽  
Productivity Improvement ◽  
Project Completion ◽  
Long Run ◽  
Competitive Disadvantage ◽  
Catch Up ◽  
Operating Constraints

With significant number of LNG projects on stream (or in various stages along the pre-feasibility to project completion continuum), world LNG markets will experience pricing pressure. This will push more customers into the spot market, doing only longer-term offtake deals where pricing is favourable to the buyer. While Australia is positioned favourably to import markets in Asia, it will be at a competitive disadvantage given lower labour productivity (impacting both construction and maintenance activities), industrial conditions (impacting the option value of being able to ramp production up and down), higher asset costs, and a higher dollar. Long-run returns on existing and planned LNG projects will need to focus on continuously improving productivity, particularly upstream in exploration/delineation and development, faster than overseas competitors. This will require Australian companies to take a lead role in incubating and developing drilling, completion, and workover technologies. Australia lags behind other countries, but it can catch up and overtake them if it acts now. This extended abstract discusses Australia’s likely/potential long-run position in LNG to global sink markets; the operating constraints on LNG operations relative to overseas competitors; and, the implications for productivity improvement in LNG given potential medium-term improvements in extraction, processing, and shipping costs for LNG operations more broadly (considering relationships between commodity pricing and exchange rate). The options for Australian LNG operations in closing any productivity gap are also discussed.

scholarly journals Performance related pay, productivity and wages in Italy: a quantile regression approach

2016 ◽  
Vol 37 (2) ◽  
pp. 344-371 ◽  
Author(s):  
Mirella Damiani ◽  
Fabrizio Pompei ◽  
Andrea Ricci
Keyword(s):  
Labour Productivity ◽  
Productivity Improvement ◽  
Italian Economy ◽  
Data Set ◽  
Content Type ◽  
Individual Level ◽  
Wage Premiums ◽  
Union Governance ◽  
The Relationship

Purpose – The purpose of this paper is to analyse the role of performance-related pay (PRP) on productivity and wages of Italian firms. Design/methodology/approach – A unique data set for the Italian economy, obtained from the ISFOL Employer and Employee Surveys (2005, 2007, 2010), is used to estimate the relationship between PRP, labour productivity and wages, also controlling for an ample set of covariates. The authors performed standard quantile regressions (QRs) to investigate heterogeneity in associations of PRP with labour productivity and wages. In a second stage, the endogeneity of PRP was taken into account by using instrumental variable QR techniques. Findings – The econometric estimates suggests that PRP are incentive schemes that substantially lead to efficiency enhancements and wage gains. These findings are confirmed for firms under union governance and suggest that well-designed policies, that circumvent the limited implementation of PRP practices, would guarantee productivity improvement and wage premiums for employees. Research limitations/implications – The main limitation of the findings concerns PRP data, that do not offer statistical information on different types of schemes, at group or individual level. Originality/value – This paper is the first to investigate, on a national scale for the Italian economy, the role of PRP on both productivity and wages, in order to shed light on the efficiency and distributive implications, whereas most of the studies of related literature are restricted to one of those aspects.

scholarly journals Catch up growth and social capability in developing countries: A conceptual and measurement proposal

OASIS ◽  
2017 ◽  
pp. 7-23
Author(s):  
Martin Andersson ◽  
Andrés Palacio
Keyword(s):  
Social Inclusion ◽  
Capabilities Approach ◽  
Income Convergence ◽  
Economic Progress ◽  
Catching Up ◽  
Long Run ◽  
Catch Up ◽  
Main Components ◽  
Social Capability

While the income per capita in the developing world since the turn of the Millennium has grown faster than that of the developed world, the question whether there is an ongoing process of catching up between countries remains. The notion of income convergence has provided many insights into the sources for long-run growth but has largely neglected the role of social capabilities in economic development. By social capabilities we mean the qualification of the ‘theory of convergence’ which asserts that productivity growth rates  between countries tend to vary inversely with regard to productivity levels. The social capabilities approach holds that a country’s potential for rapid growth is strong when “it is technologically backward but socially advanced” (see Abramovitz, 1986:388). This means that the potential to catch up under globalization is strongest for countries in which social capabilities are developed to allow successful use of technologies and where institutional arrangements are conducive to economic progress. Yet there is no clear agreement in the literature on the main components of social capabilities or how to measure them. Our framework argues that the role of capabilities in catching up needs to understand them in terms of structural transformation, economic and social inclusion, state´s autonomy and accountability. Without progress in these dimensions within-country inequality may increase and might in turn lead to stagnating growth and slim prospects for global income convergence.

scholarly journals “Non-Catch-up Development” of Africa. Economist’s observations on forecasts, statistical manipulations, demographic romanticism and rejuvenation of elites

2019 ◽  
pp. 5-17
Author(s):  
Leonid Fituni
Keyword(s):  
Global Economy ◽  
World Order ◽  
Demographic Dividend ◽  
Statistical Estimates ◽  
Long Run ◽  
African Youth ◽  
Catch Up ◽  
Restrictive Measures ◽  
First Time

The article analyzes the long-run reliability and sustainability of the basic arguments referred to in assessing the upward development of Africa in the 21st century. The author argues that the ongoing changes in the global economy and the nature of the current transformation of the world order put in doubt that the “catch-up development” of the continent will advance exactly as foreseen by the basic African development strategies and as it is customary to present them in scientific literature. He supports his assessment by showing that some of the initial statistical estimates and projections of existing trends may have been based on a not completely correct statistical basis. Much attention is paid to a more realistic approach to the role of the “demographic dividend” in the future. The article systematizes and classifies the fundamental reasons why such miscalculations occurred and what needs to be taken into account in order to obtain to more estimates and more realistic scenarios of future development. The author insists that the “demographic dividend” does not inevitably arise by itself. For the favorable effects of the demographic dividend to occur, it is necessary to create high-quality, more productive jobs. Only in this case can the expected positive social and economic shifts follow, including the growth of the African middle class. For the first time, the economic problems of catch-up development are linked to the process of “rejuvenation of the elites” that is developing and being stimulated by a number of external players. For these purposes, external state and non-state actors may use sanctions and other restrictive measures. The author provides a classification and description of three types of behavioral patterns of African youth in politics. In African conditions understanding of those issues is crucial since young people constitute the majority of the population in a huge number of countries on the continent.

Demand drives growth all the way: Goodwin, Kaldor, Pasinetti and the Steady State

2018 ◽  
Vol 43 (5) ◽  
pp. 1333-1352 ◽  
Author(s):  
Lance Taylor ◽  
Duncan K Foley ◽  
Armon Rezai
Keyword(s):  
Numerical Simulation ◽  
Steady State ◽  
Productivity Growth ◽  
Labour Productivity ◽  
Wealth Inequality ◽  
Steady State Solution ◽  
Medium Term ◽  
Labour Productivity Growth ◽  
Long Run ◽  
Analysis Of Dynamics

Abstract A demand-driven alternative to the conventional Solow–Swan growth model is analysed. Its medium run is built around Marx–Goodwin cycles of demand and distribution. Long-run income and wealth distributions follow rules of accumulation stated by Pasinetti in combination with a technical progress function for labour productivity growth incorporating a Kaldor effect and induced innovation. An explicit steady state solution is presented along with analysis of dynamics. When wage income of capitalist households is introduced, the Samuelson–Modigliani steady state ‘dual’ to Pasinetti’s cannot be stable. Numerical simulation loosely based on US data suggests that the long-run growth rate is around 2% per year and that the capitalist share of wealth may rise from about 40 to 70% due to positive medium-term feedback of higher wealth inequality into its own growth.

The Role of Energy in Twentieth-Century Economic Growth

2014 ◽  
Author(s):  
Malanima Paolo ◽  
Astrid Kander ◽  
Paul Warde
Keyword(s):  
Economic Growth ◽  
Twentieth Century ◽  
Energy Intensity ◽  
Industrial Revolution ◽  
Shared Experience ◽  
Long Run ◽  
Catch Up ◽  
Third Industrial Revolution ◽  
Twentieth Century Europe

This chapter examines the role of energy in the economic growth of twentieth-century Europe. It considers the interrelationships of factors of production in order to identify the general features of a shared experience of growth, rather than to illuminate the local differences. The chapter first explains how development blocks contributed to GDP growth before discussing seven long-run propositions, including the strong growth of capital stock and catch-up with the leader of capital–GDP ratios; machinery increased more than GDP, labor, and other capital; and falling and converging energy intensity in the twentieth century. The chapter concludes with an overview of the link between energy intensity and economic structure. It argues that it was the third industrial revolution that was behind most of the increasing economic efficiency of energy consumption after the 1970s.

The Problem of Identifying and Modeling the Relationship between Monetary Factor and Inflation in the Russian Economy

2008 ◽  
pp. 61-76
Author(s):  
A. Porshakov ◽  
A. Ponomarenko
Keyword(s):  
Money Supply ◽  
Money Demand ◽  
Russian Economy ◽  
Long Run ◽  
Complex Approach ◽  
Wide Range ◽  
Long Time ◽  
The Relationship ◽  
Supply Side Factors

The role of monetary factor in generating inflationary processes in Russia has stimulated various debates in social and scientific circles for a relatively long time. The authors show that identification of the specificity of relationship between money and inflation requires a complex approach based on statistical modeling and involving a wide range of indicators relevant for the price changes in the economy. As a result a model of inflation for Russia implying the decomposition of inflation dynamics into demand-side and supply-side factors is suggested. The main conclusion drawn is that during the recent years the volume of inflationary pressures in the Russian economy has been determined by the deviation of money supply from money demand, rather than by money supply alone. At the same time, monetary factor has a long-run spread over time impact on inflation.

The Role of Technological Change in the Long-run Global Economy Forecasting

2013 ◽  
pp. 97-116 ◽  
Author(s):  
A. Apokin
Keyword(s):  
Technological Change ◽  
Data Quality ◽  
Long Range ◽  
Global Economy ◽  
World Economy ◽  
Qualitative Approaches ◽  
Long Run ◽  
The World ◽  
National Economies

The author compares several quantitative and qualitative approaches to forecasting to find appropriate methods to incorporate technological change in long-range forecasts of the world economy. A?number of long-run forecasts (with horizons over 10 years) for the world economy and national economies is reviewed to outline advantages and drawbacks for different ways to account for technological change. Various approaches based on their sensitivity to data quality and robustness to model misspecifications are compared and recommendations are offered on the choice of appropriate technique in long-run forecasts of the world economy in the presence of technological change.

PENGARUH INFRASTRUKTUR SECARA SPASIAL TERHADAP KONVERGENSI PERTUMBUHAN EKONOMI DI INDONESIA

INFO ARTHA ◽  
2017 ◽  
Vol 1 ◽  
pp. 17-28
Author(s):  
Anisa Fahmi
Keyword(s):  
Economic Growth ◽  
Regional Economics ◽  
Developed Countries ◽  
Road Infrastructure ◽  
Long Run ◽  
Catch Up ◽  
The Developed Countries ◽  
Positive Effect ◽  
Neoclassical Growth Theory

Motivated by inter-regional disparities condition that occurs persistently, this study examines the Indonesian economy in the long run in order to know whether it tends to converge or diverge. This convergence is based on the Solow Neoclassical growth theory assuming the existence of diminishing returns to capital so that when the developed countries reach steady state conditions, developing countries will continuously grow up to 'catch-up' with developed countries. Based on regional economics perspective, each region can not be treated as a stand-alone unit,therefore, this study also focuses on the influence of spatial dependency and infrastructure. Economical and political situations of a region will influence policy in that region which will also have an impact to the neighboring regions. The estimation results of spatial cross-regressive model using fixed effect method consistently confirmed that the Indonesian economy in the long term will likely converge with a speed of 8.08 percent per year. Other findings are road infrastructure has a positive effect on economic growth and investment and road infrastructure are spatially showed a positive effect on economic growth. In other words, the investment and infrastructure of a region does not only affect the economic growth of that region but also to the economy of the contiguous regions. 

Literalism and Moral Status

2018 ◽  
Author(s):  
Carrie Figdor
Keyword(s):  
Moral Status ◽  
Moral Standing ◽  
Short Term ◽  
Long Run ◽  
Moral Boundaries ◽  
Psychological Capacities

Chapter 9 presents the idea that Literalism undermines current social and moral boundaries for moral status. Possession of psychological capacities, moral standing, and respectful treatment are a standard package deal. So either many more beings enjoy moral status than we now think, or the relative superiority of human moral status over other beings is diminished. It introduces the role of psychological ascriptions in drawing social and moral boundaries by examining dehumanization and anthropomorphism. It argues that in the short term Literalism does not motivate us to do more than make minor adjustments to current moral boundaries. We can distinguish the kinds of psychological capacities that matter for moral status from the kinds that best divide nature at its joints. In the long run, however, Literalism prompts us to reconsider the anthropocentric standards that govern current moral boundaries.

scholarly journals Role of Primate Cerebellar Hemisphere in Voluntary Eye Movement Control Revealed by Lesion Effects

2009 ◽  
Vol 101 (2) ◽  
pp. 934-947 ◽  
Author(s):  
Masafumi Ohki ◽  
Hiromasa Kitazawa ◽  
Takahito Hiramatsu ◽  
Kimitake Kaga ◽  
Taiko Kitamura ◽  
...  
Keyword(s):  
Eye Movements ◽  
Eye Movement ◽  
Smooth Pursuit ◽  
Movement Control ◽  
Cerebellar Hemisphere ◽  
Target Velocity ◽  
Eye Movement Control ◽  
Pursuit Eye Movements ◽  
Catch Up

The anatomical connection between the frontal eye field and the cerebellar hemispheric lobule VII (H-VII) suggests a potential role of the hemisphere in voluntary eye movement control. To reveal the involvement of the hemisphere in smooth pursuit and saccade control, we made a unilateral lesion around H-VII and examined its effects in three Macaca fuscata that were trained to pursue visually a small target. To the step (3°)-ramp (5–20°/s) target motion, the monkeys usually showed an initial pursuit eye movement at a latency of 80–140 ms and a small catch-up saccade at 140–220 ms that was followed by a postsaccadic pursuit eye movement that roughly matched the ramp target velocity. After unilateral cerebellar hemispheric lesioning, the initial pursuit eye movements were impaired, and the velocities of the postsaccadic pursuit eye movements decreased. The onsets of 5° visually guided saccades to the stationary target were delayed, and their amplitudes showed a tendency of increased trial-to-trial variability but never became hypo- or hypermetric. Similar tendencies were observed in the onsets and amplitudes of catch-up saccades. The adaptation of open-loop smooth pursuit velocity, tested by a step increase in target velocity for a brief period, was impaired. These lesion effects were recognized in all directions, particularly in the ipsiversive direction. A recovery was observed at 4 wk postlesion for some of these lesion effects. These results suggest that the cerebellar hemispheric region around lobule VII is involved in the control of smooth pursuit and saccadic eye movements.

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