CAUSALITY BETWEEN EXPORTS AND PRODUCTIVITY IN THE MALAYSIAN ECONOMY

2011 ◽  
Vol 56 (03) ◽  
pp. 377-395 ◽  
Author(s):  
NURHANI ABA IBRAHIM
Keyword(s):  
Error Correction ◽  
Empirical Evidence ◽  
Granger Causality ◽  
Labor Productivity ◽  
Productivity Growth ◽  
Capital Intensity ◽  
Manufacturing Industries ◽  
Error Correction Mechanism

Empirical evidence linking exports and productivity growth has been mixed and inconclusive. This study re-examines the direction of the causality between them for Malaysian industries by using the error-correction mechanism and Granger causality models. In a panel of 63 manufacturing industries, for the period of 1981 to 1999, it is found that these industries support the export-led growth and the growth-driven export hypotheses. A further look into the results indicates that there are possibilities of indirect causalities between productivity growth and export through size and capital intensity, as both exports and labor productivity have bidirectional causality with size and capital intensity.

scholarly journals Updated Notes on the Interindustry Wage Structure, 1890–1990

ILR Review ◽  
1995 ◽  
Vol 48 (2) ◽  
pp. 305-321 ◽  
Author(s):  
Steven G. Allen
Keyword(s):  
Productivity Growth ◽  
Wage Growth ◽  
Capital Intensity ◽  
Union Density ◽  
Wage Structure ◽  
Manufacturing Industries ◽  
Strongly Correlated ◽  
Previous Time ◽  
Profit Growth

The author documents and analyzes changes in wage structure across manufacturing industries over the years 1890–1990. Interindustry differentials in wages were highly stable over that period for production workers, but much less stable for nonproduction workers. Interindustry wage patterns were very similar for production and nonproduction workers in 1990, though this similarity dates back only to 1958. Although dispersion of wages across industries followed varying trends over the period, it was higher in 1990 than at any previous time in this century. The variables that have been most strongly correlated with wage growth are productivity growth, rising union density, rising capital intensity, and profit growth.

scholarly journals Active on Many Foreign Markets: A Portrait of German Multi-market Exporters and Importers from Manufacturing Industries

2018 ◽  
Vol 238 (2) ◽  
pp. 157-182 ◽  
Author(s):  
Joachim Wagner
Keyword(s):  
Labor Productivity ◽  
Empirical Investigation ◽  
Decisive Role ◽  
Capital Intensity ◽  
Manufacturing Industries ◽  
Firm Characteristics ◽  
Foreign Markets ◽  
Ceteris Paribus ◽  
Industry Affiliation

Abstract This paper uses information on more than 160 million export and import transactions by German firms from 2009 to 2012 to document the decisive role of multi-market traders that are active on many foreign markets, where a market is defined as a combination of a good traded and a country traded with. Using merged information from trade transactions and from surveys conducted by the statistical offices it is shown that, controlling for detailed industry affiliation, the number of foreign markets a firm from manufacturing industries is active on as an exporter or importer is higher in firms that are larger, older and foreign owned and that have higher labor productivity, human capital intensity and R&D intensity. With the exception of labor productivity these results are valid ceteris paribus, too. All these results from a descriptive empirical investigation are in line with hypotheses that are derived from the literature on the links between firm characteristics and the extensive margins of foreign trade.

scholarly journals Product Tax Revenue and Economic Growth in Nigeria: An Engle-Granger Approach, Evidence From 1981 - 2019

2020 ◽  
Vol 1 (2) ◽  
pp. 66-76
Author(s):  
Henry Ikechukwu Amalu ◽  
Thaddeus Nnaemeka Ukwueze ◽  
Loenard U. Olife ◽  
Favour Friday Irokwe
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Error Correction ◽  
Granger Causality ◽  
Unit Root ◽  
Speed Of Adjustment ◽  
Long Run ◽  
Step Procedure ◽  
Error Correction Mechanism ◽  
Short Run

Purpose: Product tax is an essential tool for governments, serving both as a revenue generator and fiscal policy instrument. The paper examines short-run and long-run relationships shared by product taxes and economic growth in Nigeria for the period, 1981 to 2019. Approach/Methodology/Design: The study checks the stationarity properties of the series by testing them for unit roots using Augmented Dickey Fuller (ADF) method and Philip-Perron unit root test. Both unit root tests indicate that the series is stationary at first difference. In view of this, the study deploys a cointegration technique, Engle-Granger two-step procedure to determine the long-run and short-run links shared by the variables of interest. The Error Correction Mechanism (ECM) estimation and the Granger causality estimations for speed of adjustment and causality of the variables were also used. Findings: The results reveal that product tax revenues and economic growth cointegrate in the long-run; while product tax revenues exert a significant positive effect on economic growth both in the short-term and long-term. The outcome of the Error Correction Mechanism (ECM) estimation shows a swift speed of adjustment to a new long-run equilibrium after a shock. The outcome of the Granger causality estimations indicates a uni-directional causality from economic growth to revenues from product taxes. Practical Implications: This study is significant at this point when the country is facing increasing economic challenges. It will be useful to policy makers who might want to explore the possibility of using product tax as a fiscal policy tool, and a source of revenue to augment the declining revenue of the government from other sources. Originality/value: The paper explores short-run and long-run relationships shared between product taxes and economic growth in Nigeria using a two-step procedure of Engle and Granger, and it verifies causality link between the later and the former.

Opportunities for accelerating labor productivity growth: The role of small and medium enterprises

2020 ◽  
pp. 98-114
Author(s):  
Evguenia V. Bessonova ◽  
Alexander G. Morozov ◽  
Natalia A. Turdyeva ◽  
Anna N. Tsvetkova
Keyword(s):  
Labor Productivity ◽  
Productivity Growth ◽  
Small And Medium Enterprises ◽  
Growth Potential ◽  
Business Climate ◽  
Labor Productivity Growth ◽  
Positive Effects ◽  
Low Efficiency ◽  
Medium Enterprises ◽  
Medium Firms

The paper considers necessary conditions for acceleration of labor productivity growth in Russia. Based on micro data, as well as aggregate data, the paper quantifies the contribution of small and medium firms to labor productivity growth. It shows that mere increase of the number of small and medium enterprises is not as important for positive effects of these programs, as qualitative improvements: development of favorable environment for growth, which is largely determined by business climate. Accelerating productivity growth involves redistribution of labor and capital from inefficient to efficient enterprises. In particular, it is necessary to create conditions, which allow a firm to grow after it enters the market instead of stagnating as a small firm with low efficiency. At the same time, it is necessary for ineffective firms, which exhausted their growth potential, to have an opportunity to exit the market easily leaving resources including labor to fast-growing companies.

scholarly journals Intangible Assets and Labor Productivity Growth

Economies ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 82
Author(s):  
Carolina Hintzmann ◽  
Josep Lladós-Masllorens ◽  
Raul Ramos
Keyword(s):  
Labor Productivity ◽  
Productivity Growth ◽  
Intangible Assets ◽  
Manufacturing Sector ◽  
Intangible Asset ◽  
Labor Productivity Growth ◽  
Eu Member States ◽  
Different Types ◽  
European Economies ◽  
D Investment

We examine the contribution to labor productivity growth in the manufacturing sector of investment in different intangible asset categories—computerized information, innovative property, and economic competencies—for a set of 18 European countries between 1995 and 2017, as well as whether this contribution varies between different groups of countries. The motivation is to go a step further and identify which single or combination of intangible assets are relevant. The main findings can be summarized as follows. Firstly, all the three different categories of intangible assets contribute to labor productivity growth. In particular, intangible assets related to economic competences together with innovative property assets have been identified as the main drivers; specifically, advertising and marketing, organizational capital, research and development (R&D) investment, and design. Secondly, splitting the sample of European Union (EU) member states into three groups—northern, central and southern Europe—allows for the identification of a significant differentiated behavior between and within groups, in terms of the effects of investment in intangible assets on labor productivity growth. We conclude that measures promoting investment in intangibles at EU level should be accompanied by specific measures focusing on each country’s needs, for the purpose of promoting labor productivity growth. The obtained evidence suggests that the solution for the innovation deficit of some European economies consist not only of raising R&D expenditure, but also exploiting complementarities between different types of assets.

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