Manufacturing, Services, and the Productivity Gap

2018 ◽  
Author(s):  
Jorge Arbache
Keyword(s):  
Service Sector ◽  
Manufacturing Sector ◽  
Emerging Market ◽  
Aggregate Productivity ◽  
Services Sector ◽  
The Poor ◽  
Key Factor ◽  
Manufacturing Competitiveness ◽  
Long Term Performance ◽  
Term Performance

This chapter examines a little explored and yet important aspect of the poor productivity in Brazil: the performance of the service sector. It shows evidence that the meager long-term performance of the services sector is a key factor in explaining the poor aggregate productivity and manufacturing competitiveness in Brazil. The reasons for that are twofold. First, Brazil is experiencing a profound structural transformation in favor of the services sector, mainly at the expense of the manufacturing sector, to the point that the shares of services in output and in employment have become unusually high by emerging market standards. Second, manufacturing firms in Brazil are increasingly outsourcing all types of services to the point where the share of services in total costs have become comparable to that of advanced economies.

scholarly journals Structural transformation and productivity in Latin America

2015 ◽  
Vol 15 (2) ◽  
Author(s):  
Pedro Cavalcanti Ferreira ◽  
Leonardo Fonseca da Silva
Keyword(s):  
Latin America ◽  
Structural Transformation ◽  
Productivity Growth ◽  
Equilibrium Model ◽  
Poor Performance ◽  
Services Sector ◽  
The Poor ◽  
Agriculture Industry ◽  
Key Factor ◽  
Modern Services

AbstractThis article examines the effects of sectorial shifts and structural transformation on the recent productivity path of Latin America. We use a four-sector (agriculture, industry, modern services and traditional services) general equilibrium model calibrated to the main economies in the region. The model very closely replicates labor reallocations across sectors and the growth of aggregate labor productivity from 1950 to 2005. Structural transformation explains a sizeable portion of the region’s convergence in the first decades. In most cases, the poor performance of the traditional services sector is the main cause of the slowdown in productivity growth observed in the region after the mid-1970s and is a key factor in explaining the divergence during this period.

scholarly journals Post-Acquisition Performance of Emerging Market Firms: A Multi-Dimensional Analysis of Acquisitions in India

2021 ◽  
Vol 14 (12) ◽  
pp. 567
Author(s):  
Arindam Das
Keyword(s):  
Structural Equation ◽  
Emerging Market ◽  
Empirical Studies ◽  
Short Term ◽  
Firm Level ◽  
Acquisition Performance ◽  
Long Term Performance ◽  
Term Performance ◽  
A Performance

M&A performance is a multifaceted, compound construct with no overarching factor that captures all different dimensions. This paper examines the concept of acquisition performance and proposes a model that links firm-level factors and transaction parameters with firms’ short-term and long-term performance, extending to financial-, market- and innovation measures. Building on past empirical studies on the influence of various factors on M&A performance, a multi-dimensional structural equation model has been developed and it has been tested with a dataset on acquisitions in the Indian technology sector over a period of ten years. The results suggest that: (a) smaller acquirers with higher book value and leveraged firms demonstrate better long-term performance; (b) contrary to established understanding, short-term market returns are not influenced by deal parameters; (c) majority stake purchases show relatively lesser gains—suggesting the possible presence of post-acquisition integration issues and, (d) acquirers with high intangible assets continue to do well on innovation performance post-acquisition. By indicating situations and conditions under which an acquisition would potentially lead to a performance gain for the acquirer, these results provide significant insight to practitioners pursuing M&As for growth opportunities.

Cooperation as a vehicle for innovation: a study of the effects of firm size and industry type

2019 ◽  
Vol 23 (3) ◽  
pp. 329-347 ◽  
Author(s):  
Silveli Cristo-Andrade ◽  
Mário José Franco
Keyword(s):  
Firm Size ◽  
Professional Training ◽  
Service Sector ◽  
Technical Assistance ◽  
Manufacturing Sector ◽  
Emerging Market ◽  
Business Groups ◽  
Binary Logistic Regression ◽  
Developed Countries ◽  
Content Type

Purpose Based on firms’ need to remain competitive and dynamic in a scenario of constant change, the purpose of this paper is to compare the actors involved in cooperation for innovation between Brazilian small- and medium-sized enterprises (SMEs) and large firms (LFs), and also in two industries/sectors, manufacturing and services. Design/methodology/approach To achieve this objective, the database chosen was PINTEC, with data available from 1998 to 2014. The statistical analyses performed were binary logistic regression, descriptive statistics of the variables, correlation matrix and the difference of means. Findings The empirical evidence show that the firm’s characteristics (SME or LF) favour the use of one type of cooperation for innovation or another, highlighting SMEs’ proximity to their clients and LFs’ structures, tending to belong to business groups and having links to training centres and technical assistance networks. Research limitations/implications The theoretical contribution of this study lies in the evidence that types of cooperation for innovation can vary according to firm size and the type of industry/sector, and the practical contribution lies in pointing out the importance of clients for SMEs, and for LFs the importance of business groups, technical assistance and professional training centres. The importance of suppliers in cooperation for innovation stands out in the service sector, and that of clients in the manufacturing sector. Originality/value This study shows that the types of cooperation to innovation can vary according to firm size and type of sector, in an emerging market and with low rates of innovation. It is emphasized that most research on the subject has been carried out in developed countries or emerging Asian ones. Therefore, this study is innovative because it shows particularities of the Brazilian market that can subsequently be observed in other emerging markets.

scholarly journals Productivity growth and sectoral interactions under Domar aggregation: a study for the Brazilian economy from 2000 to 2014

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Theo Santini ◽  
Ricardo Azevedo Araujo
Keyword(s):  
Productivity Growth ◽  
Manufacturing Sector ◽  
Poor Performance ◽  
High Density ◽  
Aggregate Productivity ◽  
Intermediate Inputs ◽  
The Poor ◽  
Negative Role ◽  
Overall Performance ◽  
Productivity Gains

AbstractIn this paper, we use the Domar aggregation approach to study the evolution of Brazil’s productivity growth from 2000 to 2014, thus allowing us a disaggregated assessment of the issue. We found that the Brazilian economy’s overall performance is the outcome of a decrease in the economy’s density, as defined by the existing backward and forward connections amongst industries in intermediate inputs chains. It also can be explained by the poor performance of its sectors. Despite the relatively high density of the manufacturing sector, it performed a negative role concerning aggregate productivity growth both directly and indirectly. Directly insofar as that sector had negatives productivity growths during the period under consideration, and indirectly due to its high interconnection, which spread negative rather than positive productivity gains across the economy. Therefore, to improve the Brazilian economy’s poor performance, it is mandatory to restore the manufacturing sector’s capability to yield and spread productivity gains.

scholarly journals Asymmetric exchange rate exposure and its determinants: Analysis of the emerging market firms

2021 ◽  
Vol 18 (2) ◽  
pp. 154-161
Author(s):  
Anurag Agnihotri ◽  
Shagun Arora
Keyword(s):  
Exchange Rate ◽  
Service Sector ◽  
Financial Integration ◽  
Manufacturing Sector ◽  
Emerging Market ◽  
Exchange Rate Policy ◽  
Exchange Rate Exposure ◽  
Hedging Strategies ◽  
Capital Account Convertibility ◽  
Account Convertibility

The wave of globalization has increased international trade and business to many folds. Countries moving toward capital account convertibility have enabled investors to invest in any part of the world. Consequently, financial integration has led to volatility in the currency and capital market. The variation in the exchange rate leads to fluctuation in stock return. However, the response of firms to currency fluctuation may vary for periods of appreciation and depreciation. The daily return of 260 firms was analyzed from 2004 to 2019. The study uses the orthogonalized model developed by Di Iorio and Faff (2000) and Koutmos and Martin (2003). The result shows that 66.54% of firms were affected by currency fluctuations and 12.2% of firms responded asymmetrically to periods of appreciation and depreciation. The analysis revealed that service sector firms are more exposed to currency fluctuation than the manufacturing sector. The study also explores a comprehensive range of determinants of exchange rate exposure. The research revealed that size and quick ratio are inversely related while asset turnover, foreign sales, and book-to-market value have a positive relationship with exchange rate exposure. The research will act as a guiding force to the policymakers to make an efficient exchange rate policy while portfolio managers can use the findings of the study in forming hedging strategies

scholarly journals Analisis Transformasi Struktur Ekonomi 7 Provinsi di Wilayah Jawa dan Bali (Pendekatan LQ dan Shift Share)

2021 ◽  
Vol 4 (2) ◽  
pp. 178-200
Keyword(s):  
Labor Productivity ◽  
Service Sector ◽  
Manufacturing Sector ◽  
Job Creation ◽  
Economic Structure ◽  
The Other ◽  
Economic Sectors ◽  
Services Sector ◽  
Other Hand ◽  
Service Sectors

This study is aimed to: (a) analyze changes in the economic structure of Java and Bali from 2010 to 2019, (b), understand to what extent the level of specialization of economic sectors in the Java and Bali Region that utilizes the base or the leading sector, and (c) understand on economic sectors that are growing progressively and have high competitiveness in the Java and Bali Regions. This study uses the LQ method and shift share analysis. Results show that the economy of Java-Bali from 2010 to 2019 did not experience much shift in the economic structure. In general, sectors that became the source of growth in 2010 in each province in Java-Bali remained the base sector/sources of growth in 2019. The shift share analysis shows that the Manufacturing sector in most provinces in Java-Bali is in quadrant III, which means that it grows slowly and its commodities lack of competitiveness. Meanwhile, the Communication and Information sector is mostly in quadrant II, which means this sector is growing progressively but lacks of competitiveness. Likewise with the Transportation and Warehousing sector, in most provinces this sector is able to grow progressively, but this sector lacks good competitiveness (quadrant II). On the other hand, the Service sectors in most provinces have grown progressively and have good competitiveness (quadrant I). The implication of this finding is the presence of symptoms of premature deindustrialization in Java-Bali, since the Services sector is growing faster, more progressive with a contribution to GDRP exceeds the Manufacturing sector, whereas the Manufacturing sector is not mature yet. Premature deindustrialization in Java-Bali has the potential to reduce job creation in the manufacturing sector and increase the risk of unemployment. Although the Service sector is growing progressively and competitively; However, if we look at the labor productivity, it appears that the labor productivity of the Service sector is much smaller than the labor productivity of the Manufacturing sector

Women’s Employment and Well-Being of Children Under 5 Years in Vietnam

2018 ◽  
Vol 30 (8) ◽  
pp. 708-716 ◽  
Author(s):  
Quang N. Bui ◽  
Trung X. Hoang ◽  
Nga T. V. Le ◽  
Tung S. Tran
Keyword(s):  
Child Nutrition ◽  
Service Sector ◽  
Manufacturing Sector ◽  
Well Being ◽  
Women's Employment ◽  
Women’S Employment ◽  
Services Sector ◽  
The Impact ◽  
Children Under 5

This study investigates the impact of women’s employment in the manufacturing sector and in the services sector on the well-being of children aged 0 to 5 years in Vietnam. Our findings show that women’s employment decreases the quantity of time that mothers spend with their children. At the same time, women’s employment increases their income. The magnitude of the impact of women’s employment in the services sector on child nutrition is greater than that of women’s employment in manufacturing. This may be because of the higher income of mothers working in the service sector when compared to those working in manufacturing.

scholarly journals Make in India Campaign: An Assessment of its Likely Economic Impact

2018 ◽  
Vol 4 (02) ◽  
Author(s):  
Amit Kumar Singh ◽  
Annu Aggarwal ◽  
Rohit Kumar Shrivastav
Keyword(s):  
Growth Performance ◽  
Economic Impact ◽  
Service Sector ◽  
Manufacturing Sector ◽  
Young Population ◽  
Growth Opportunities ◽  
Employment Opportunities ◽  
Services Sector ◽  
Indian Economy

India’s growth performance has been diverse yet fascinating over a period of time. While agriculture and manufacturing were the dominant sectors during the pre-industrialisation and industrialisation period respectively, more recently, the services sector has emerged as the most important sector in terms of its contribution to GDP. The growing demands of service sector and its importance in the economy has led to a concern about the situation of India’s manufacturing sector. This study analyses the ‘Make in India’ initiative of the present government launched in September 2014, with the twin objectives of developing India as hub of business and manufacturing and generating massive employment opportunities for India’s teeming young population. The analysis indicates that Indian economy is gaining momentum slowly, and growth estimates are in line with projections made. India also has the best prospects for the growth opportunities in coming decade. Since this concept is new, it will take some years before analysts can effectively measure the success of this campaign.

Weak service sector constrains Taiwan's economy

2016 ◽  
Keyword(s):  
Private Consumption ◽  
Service Sector ◽  
Manufacturing Sector ◽  
Dominant Role ◽  
Advanced Manufacturing ◽  
Content Type ◽  
Profit Margins ◽  
Industrial Policies ◽  
Services Sector ◽  
Manufacturing Sectors

Subject Taiwan's service sector. Significance The services sector has assumed a dominant role in Taiwan's GDP (63%) and employment (59%). However, this reflects hollowing out of the manufacturing sector rather than a strengthening of services. Like the manufacturing sector, Taiwan's services sector is characterised by low profit margins and salaries, and dominated by small and medium-sized enterprises (SMEs) with weak R&D capability. Impacts Limited salary growth in the services sector will restrain private consumption. The incoming government's industrial policies will create demand for services connected with several advanced manufacturing sectors. The FTAs the new government seeks with advanced countries may help reinvigorate Taiwan's uncompetitive, inward-looking services sector.

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