scholarly journals Slow Growth and Sluggish Manufacturing in Indonesia’s Less Competitive Provinces: A Geweke Causality Analysis

2018 ◽  
Vol 4 (2) ◽  
pp. 2
Author(s):  
Tan Khee Giap ◽  
Mulya Amri
Keyword(s):  
Slow Growth ◽  
Full Employment ◽  
Labour Force ◽  
Labour Productivity ◽  
Value Added ◽  
Output Growth ◽  
Causal Effects ◽  
Causality Analysis ◽  
Economic Activities ◽  
Low Levels

This article presents a causality analysis of lagging economic growth in two Indonesian provinces: East Nusa Tenggara and North Maluku. We identify three variables which stand out for some of Indonesia’s economically challenged provinces: consistently low gross domestic product (GDP) growth, low levels of manufacturing, and under-utilisation of labour. Using Geweke causality analysis, we identify and measure the direction of causal effects between these variables. Our empirical findings confirm that output growth is affected by the level of value addition in economic activities and the productivity of human resources. We find that both the secondary sector’s contribution to gross regional development product (GRDP) and labour productivity contribute to the changes in overall provincial GRDP, but not the other way around. Such findings suggest that development in Indonesia’s economically challenged provinces would benefit greatly from expansion of appropriate manufacturing and value added activities, and more productive utilization of labour force in full employment situations.

scholarly journals REMUNERATIONS AND LABOUR PRODUCTIVITY IN AGRICULTURE AGAINST A BACKGROUND OF OTHER ECONOMY SECTORS

2018 ◽  
Vol 17 (1) ◽  
pp. 49-58 ◽  
Author(s):  
Justyna Góral ◽  
Włodzimierz Rembisz
Keyword(s):  
Agricultural Sector ◽  
Optimal Allocation ◽  
Labour Force ◽  
Empirical Studies ◽  
Labour Productivity ◽  
Allocation Of Resources ◽  
Economic Activities ◽  
Agricultural Producers ◽  
The Sustainable Development ◽  
Economic Growth Model

The optimal allocation of resources in various sectors results in the sustainable development of the whole economy (the theory of optimum allocation of resources by Kantonowicz and Koopmans). According to Tinbergen’s studies, the excessive labour force in one of them gives rise to all types of social and economic problems. The objective of theoretical considerations and empirical studies of this publication is to analyse the ratio of the remuneration for labour to its productivity in various economy sectors with particular attention paid to the agricultural sector. The authors also refer to the theory by Lewis and Schultz, who had analysed the problems of agriculture in developing countries, as well as to the Solow economic growth model with the Cobb–Douglas production function. In the light of the empirical data presented in the paper, we can conclude that in section A of Statistical Classification of Economic Activities this ratio is seriously disturbed and distorted. The remuneration is overvalued in relation to the labour productivity. Such a ratio is not a positive testimony to the reasonableness of management in the sense of agricultural producers’ equilibria.

scholarly journals Financial System and Agricultural Growth in Ukraine

Organizacija ◽  
2017 ◽  
Vol 50 (3) ◽  
pp. 244-253 ◽  
Author(s):  
Olena Oliynyk-Dunn
Keyword(s):  
Financial Development ◽  
Regression Models ◽  
Financial System ◽  
Value Added ◽  
Output Growth ◽  
Economic Activities ◽  
Agricultural Growth ◽  
Bank Deposits ◽  
Methodological Approaches ◽  
Integrated Indicators

Abstract Background/Purpose: An effective financial system should increase the efficiency of economic activities. This study provides evidence regarding the importance of financial development for agricultural growth in Ukraine. Methodology: We used non-integrated and integral indicators, time series and regression analysis to investigate the link between the financial development and agricultural growth. Results: The results based on integral indicators shows that the financial development does not affect agricultural growth in Ukraine. The study based on non-integrated indicators, which characterizes various aspects of the financial system’s banking component and agricultural growth, provided a significant link between the financial system and agriculture growth. The regression models revealed if bank deposits to GDP (%) increases the value added per worker in agriculture increases exponentially. The results of the study indicate that, agriculture is more sensitive to lending changes than the vast majority of other sectors of the economy. The increasing lending of one UAH (Ukrainian hryvnia) resulted in retail turnover growth of 1.62 UAH, while agricultural gross output, growth was UAH 5.06. Conclusion: Our results reveal a positive relationship between financial system’s banking component and agriculture growth in Ukraine. The results indicate the necessity for continued research into further developing universal methodological approaches of appraising the nexus of the financial system’s banking component on agriculture growth in general as well separate farm groups. The results of our study has important implications on policy making authorities efforts to stimulate agricultural growth by improving the efficiency of the financial system’s banking component.

scholarly journals Тенденции в производителността на труда в българската минна индустрия

2020 ◽  
pp. 15-23
Keyword(s):  
Labour Productivity ◽  
Mining Industry ◽  
Value Added ◽  
Productivity Index ◽  
International Labour Organization ◽  
Economic Activities ◽  
Operating Income ◽  
Industry Sector ◽  
The World ◽  
Almost All

Trends in Labour Productivity in the Bulgarian Mining Industry The paper summarizes the trends in the labour productivity index of the world, European (EU-28) and Bulgarian economies for the 2000-2019 period. It represents a prediction of the International Labour Organization for its development until 2024. The changes in the labour productivity of Bulgaria and the “Industry” sector are examined for the indicated period. They are determined on the basis of current prices and of 2015 prices per employee and per hour worked. The tendencies in the change of the labour productivity for the “Mining and Quarrying“ sub-sector for the 2008-2018 period are described, based on the operating income per employee and on the value added at factor cost per employee, and some conclusions are drawn. Comparison of the realized labour productivity in almost all economic activities in Bulgaria for 2018 is presented.

scholarly journals LABOUR PRODUCTIVITY IN LATVIA BY THE KIND OF ECONOMIC ACTIVITY IN 1996 - 2009

2010 ◽  
Vol 1 (2) ◽  
pp. 360
Author(s):  
Einārs Ulnicāns
Keyword(s):  
Gross Domestic Product ◽  
Economic Activity ◽  
Labour Force ◽  
Labour Productivity ◽  
Added Value ◽  
Regional Government ◽  
Productivity Analysis ◽  
Economic Activities ◽  
Research Period

The labour productivity in its turn is the best feature of labour force efficiency in Latvia. Namely, gross domestic product or added value divided by average number of employed persons per year – both indicators in the whole country or in separate kind of economic activity. The research period is from 1996 to 2009. The kinds of economic activity are based on classification of Economic Activities in European Community (NACE). In order to perform objective productivity analysis all kinds of activities are divided in two groups – profit- oriented kinds of activity and state or regional government or society regulating or supporting kinds of activity.

scholarly journals Labour productivity in the Hungarian agriculture

2018 ◽  
pp. 119-128
Author(s):  
Norbert Bozsik ◽  
Róbert Magda
Keyword(s):  
Labour Force ◽  
Labour Productivity ◽  
Value Added ◽  
Food Products ◽  
Eu Accession ◽  
Cheap Labour ◽  
Agricultural Employment ◽  
Agricultural Labour Productivity ◽  
The Cost ◽  
The Eu

This paper presents the situation of the agricultural labour employment and evaluates the agricultural labour productivity in Hungary. Since Hungary’s EU accession, the share of agricultural employment in the total employed population has been stabilized at around 5% in the country. Due to low wages, low profit and low prestige, agricultural jobs are not attractive. The gross and net labour productivity gap between Hungary and the EU have been significant since the EU accession. The agricultural labour productivity of the Hungarian regions also shows a different picture. The labour productivity influences the cost, profitability and competitiveness of products. The advantage of the cheap labour force in Hungary’s agriculture significantly decreased due to low labour productivity. There are several opportunities to increase the agricultural labour productivity such as the increase of labour force qualification, moving toward producing higher value added agri-food products, rejuvenation of population in agriculture and the improvement of the conditions of financing agriculture.

scholarly journals The structure and evolution of production, employment and human capital in Portugal: an input‑output approach

2013 ◽  
Author(s):  
João Carlos Lopes ◽  
João Ferreira Do Amaral
Keyword(s):  
Human Capital ◽  
Labour Force ◽  
Descriptive Analysis ◽  
Labour Productivity ◽  
Value Added ◽  
Capital Requirements ◽  
Final Demand ◽  
Input Output ◽  
Primary Input ◽  
Demand Structure

The main purpose of this paper is to analyse the structure and evolution of production, employment and human capital in Portugal, using an inter‑industry approach. A descriptive analysis of the sector composition of gross output, value added and employment is made, followed by a quantification of changes in relative labour productivity and primary input content of final demand components. Next, the evolution of employment multipliers is quantified, as well as the structure of labour force qualifications by sector. Although remarkable improvements have been achieved in the past, the low educational levels of its workers, on average, remains one the main vulnerabilities of Portugal in the global and knowledge economy of our days. In this context, the main contribution of the paper is the quantification of human capital requirements of final demand changes by component. Using an input ‑output approach combining sector productivities and labour qualifications, output multipliers and final demand structure, it is possible to quantify the growth in employment by level of qualification resulting from a unitary growth of private and public consumption, investment and exports. This exercise is made for 1995 and 2008, using input‑output domestic flow tables from INE and DPP and employment qualifications from Quadros de Pessoal database.

scholarly journals Regional Differentiation of Labour Productivity and Distribution of Value Added

2019 ◽  
pp. 2290-2308 ◽  
Author(s):  
Elena N. Pochekutova
Keyword(s):  
Minimum Wage ◽  
Production Efficiency ◽  
Labour Productivity ◽  
Value Added ◽  
Regional Differentiation ◽  
Average Wage ◽  
Economic Activities ◽  
Industry Specialization ◽  
Wage Formation ◽  
High Level

The article deals with the issue of the distribution of value added in the course of wage formation. Improvement of the efficiency of social production in Russia is associated with the need for innovative, technological changes that should lead to an increase in labor productivity. The Russian Federation is not a country with a high level of production efficiency. Frequently, this very fact is the reason for justifying the low wages in the country. The paradox of the existence of the category of working citizens — “the working poor” — in the country is based, among other things, on a low level of guaranteed incomes — the minimum wage. The minimum wage until May 1, 2018 did not meet the minimum wage. Neither in economic theory nor in the practice of national economies does there exist an “optimal” correlation of the distribution of value added between employees and owners. Yet, the ratio of the minimum wage to the value added rather vividly characterizes the fairness of the current systems of relations in the labour market, this phenomenon being termed “the freedom of work” by a number of experts. The size of the average wage in the region depends on the presence of high value added industries in the territory, i.e. on industry specialization. The established practice in Russia is as follows: the higher the level of average wage is, the lower the share of value added per wage is. Regions without specialization in high value-added economic activities will more realistically assess the level of socio-economic development, basing their strategic development on industries that form more equitable wage systems and equalize the average wage

scholarly journals THE ROLE OF ECONOMIC ACTIVITIES’ CLUSTERS IN GROSS VALUE ADDED GENERATION IN THE BALTIC STATES

2017 ◽  
Vol 5 ◽  
pp. 401-412
Author(s):  
Rima RubÄŤinskaitÄ— ◽  
GindrutÄ— KasnauskienÄ—
Keyword(s):  
Labor Force ◽  
Labour Force ◽  
Value Added ◽  
Retail Trade ◽  
Baltic States ◽  
Economic Activities ◽  
Regional Economic ◽  
Gross Value Added ◽  
The Baltic ◽  
The Impact

: Economic globalization affects regional development through different economic value creation chains. The structure of regional economic activities’ groups and size of clusters could also influence the structure and size of gross value added in a particular region. This paper examines the impact of the main labor force indicators on the generated gross value added in diverse economic activities in the Baltic States and the neighbor regions of Finland and Poland in the period of 2000-2013 according to Eurostat data. The research has shown that the structure of economic activities clusters in the Baltic States (Estonia, Latvia, Lithuania) significantly differs from the neighboring regions of Poland and Finland. We also found that the labour force input has a significant impact on the following economic activities’ clusters in the Baltic States: “Industry (except construction)”, “Wholesale and retail trade, transport, accommodation and food service activities”, “Construction”, “Professional, scientific and technical activities; administrative and support service activities”, “Financial and insurance activities”, “Arts, entertainment and recreation; other service activities; activities of household and extra-territorial organisations and bodies”. The impact of the labor force on generated gross value added differs in diverse economic activities. The authors believe that the results of this study could be useful for policy makers in building more progressive national and regional economic development strategies.

scholarly journals Skills and Competitiveness: Can Pakistan Break Out of the Low-level Skills Trap? (The Iqbal Memorial Lecture)

2005 ◽  
Vol 44 (4I) ◽  
pp. 387-409 ◽  
Author(s):  
Rashid Amjad
Keyword(s):  
Global Economy ◽  
Labour Force ◽  
Value Added ◽  
Work Force ◽  
Memorial Lecture ◽  
Knowledge Based ◽  
Low Levels ◽  
Mind Set ◽  
The Mind ◽  
Real Challenge

The paper argues that if Pakistan is to survive and prosper under the competitive conditions of the new global economy, then it must move away from its overwhelming dependence on “cottonomics” into more technology- and knowledge-based products where global growth is concentrated. For this to happen, it must break out of the “lowlevel skills trap”, which is the result of the very low levels of education and skills of its work force. It then poses the question whether the development of a well-educated and skilled labour force is sufficient for the country to graduate from labour-intensive to higher value-added, skill-intensive, technologically advanced sectors. The paper argues that while this is essential, the real challenge is to change the mind-set and develop institutions which recognise the value of investing in people and provide dignity, respect, and a fair deal for working men and women.

scholarly journals ANALYSIS OF THE CONDITION OF BULGARIAN BIOECONOMY AND POTENTIAL DIRECTIONS OF ITS DEVELOPMENT

2019 ◽  
Vol 34 (5) ◽  
pp. 1201-1207
Author(s):  
Valentina Nikolova -Alexieva ◽  
Jordanka Alexieva
Keyword(s):  
Climate Change ◽  
Natural Resources ◽  
Labour Productivity ◽  
Sustainable Use ◽  
Value Added ◽  
Sustainable Growth ◽  
Economic Activities ◽  
Member States ◽  
Eu Member States ◽  
Manufacturing Sectors

The population of Europe and the world is constantly growing, and so does its need for food, more and more natural resources are exhausted, the environmental impact and the related climate change challenges are increasing. It is therefore essential to move to a new way of economic growth that is compatible with environmental protection and sustainable use of limited natural resources, while ensuring a much higher standard of living reducing poverty. The development and application of innovative biotechnology methods and processes in the agriculture, health, chemistry and energy sectors has recently been seen as one of the solutions to accelerate sustainable growth and development. By focusing more on scientific research and innovation, new products from biomass and new services needed for the development of the bioeconomy would be created, helping to reduce climate change, waste and create new jobs. According to the OECD, by 2055 the bioeconomy will be the key principle of development of the European economy. This means that the focus will be on production of renewable bio-resources in agriculture, forestry and aquaculture, and biomass will become the main source of industrial raw materials.The purpose of this Study is to evaluate the state and the potential of bioeconomy in Bulgaria, to take into account the best practices of the EU Member States and to present the conclusions and recommendations for the development of bioeconomy in Bulgaria and the innovation encouraging measures in this sector, to identify the areas of bioeconomy where the business cooperation between Bulgaria and other EU Member States has the greatest potential and to establish the measures for promotion of cooperation.Various research methods were used for the Study: general scientific abstraction, induction and deduction, analysis and synthesis, content analysis, statistical data analysis, econometric time series analysis, general equilibrium modelling, questionnaires, interviews, case studies and others.As the results the analysis of Bulgarian bioeconomy statistical indicators (gross value added, employment, labour productivity, turnover, exports, earnings and the number of economic entities in operation, including farms) was conducted according to the three first groups of activities attributable to bioeconomy - biomass production, fully bio-based manufacturing sectors and partly bio-based manufacturing sectors, and types of economic activities attributable thereto, which have also been referred to as subsectors in the Study.

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